FLS logo

Flowserve Corp

FLS

Build a strategy around FLS

Accountable AI Logo

Flowserve Corp AI Insights

Informational only. Not investment advice.
As of 2025-12-16

Snapshot

  • EPS growth 280% (1Y) vs revenue growth implied by margins - massive operational leverage unlocked. 3Y EPS CAGR 79%.[EPS Growth 1Y]
  • ROE TTM 21% vs industry median 7.4% (2.8x) with ROIC 12.2% vs median 4.8% - superior capital deployment.[Return on Equity]
  • Goodwill 1.3B is 59% of equity (2.3B) - acquisition-heavy history creates impairment overhang.[Goodwill]

Watch Triggers

  • Other Income/Expense: Drops below 100M or disclosed as non-recurring260M is 42% of pretax income - core earnings may be overstated
  • Operating Margin TTM: Falls below 8% for 2 consecutive quartersWould signal margin expansion thesis failing
  • Goodwill: Any impairment charge announced1.3B goodwill vs 2.3B equity - impairment hits book hard

Bull Case

FCF yield 6.8% (629M FCF on 9.2B market cap) with low capex intensity (1.6% of revenue) funds deleveraging and buybacks.

Free Cash Flow TTMCapital Expenditure TTM

Industrial pump/valve leader with 21% ROE at only 0.74x debt/equity - balance sheet supports growth investments.

Return on Equity TTMDebt to Equity

Bear Case

P/B 12.4x on tangible book of only 743M - paying 12x for intangibles-heavy business vulnerable to write-downs.

Price to Book RatioTangible Book Value

Other income 260M (42% of pretax income 624M) - earnings quality concern if non-recurring.

Other Income/ExpensePretax Income TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
55%

Leverage FLS's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.

Take Me to The Editor

Forward Thesis

Margin expansion cycle has legs - operating margin can reach 12%+ from current 9.9%

1-3ymed
  • Operating leverage on fixed cost base
  • Mix shift to higher-margin aftermarket
  • Working capital efficiency gains
Op margin 9.9% vs 6.7% industry medianFCF conversion 89% of operating cash flowWorking capital +144M improvement TTM

Valuation Context

Caveats

Public Strategies Rankings

See how Flowserve Corp ranks across different investment strategies.

Leverage FLS's top insights and create a custom strategy in seconds. Our AI editor does it all — in one click.

Data Partners
Morningstar Logo

Fundamental company data provided by Morningstar, updated daily.

Accountable Finance, Inc. Disclaimer
accountable.finance is not operated by a broker or a dealer. Under no circumstances does any information posted on accountable.finance represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. In no event shall accountable.finance be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on accountable.finance, or relating to the use of, or inability to use, accountable.finance or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Stock quotes and fundamental company data provided by Morningstar, updated daily.

Accountable Logo
© 2026 Accountable Finance, Inc. All rights reserved.