Flowserve Corp (FLS) stock analysis

P/E above its 5-year median

Flowserve's P/E of 42.8 is above its own 5-year median of 26.1.

P/E above the industry

Flowserve's P/E of 42.8 is above the General Industrial Machinery and Equipment median of 26.9.

EV/EBITDA above its 5-year median

Flowserve's EV/EBITDA of 21.1 is above its 5-year median of 19.7.

P/B above the industry

Flowserve's price-to-book of 4.67 is above the General Industrial Machinery and Equipment median of 2.84.

Trading above fair value

The share price of $85.20 is above our fair value estimate of $56.73.

Margin of safety under 20%

The price is 50.2% above fair value, so there is no margin of safety.

Revenue growth over 3 years

Needs three years of positive revenue.

EPS growing 10%+ a year

Diluted EPS grew 22.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -43.7% over the last twelve months, against a 5-year average of 21.6% a year.

Growth against the industry

Needs revenue for this year and last.

Guidance raised

Flowserve raised its 2026 Net Interest Expense outlook on Jul 29, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 11.1% over the last twelve months and averaged 11.7% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Flowserve's return on equity of 11.1% is above the General Industrial Machinery and Equipment median of 9.9%.

Earnings grew over 5 years

Net income grew 21.6% a year on average over the last five fiscal years.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 89.0% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 99.8% five years ago to 89.0%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 11.2% of total debt; we look for at least 20%.

Interest well covered

Operating income covers interest expense 5.1 times.

Short-term assets cover short-term debts

Current assets are 2.10 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.17; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Flowserve paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Flowserve yields 1.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 43.1% of net income.

Covered by free cash flow

Dividends take 71.5% of free cash flow.