Flowserve Corp

Flowserve Corp maintains a liquidity position with a current ratio of 1.88, indicating the company can cover its short-term liabilities with its short-term assets. The company's liquidity_fpt score is moderate, with cash and equivalents amounting to $531.98 million, but its long-term debt of $1.22 billion suggests a need for careful capital management. The debt-to-equity ratio of 0.62 reflects a balanced capital structure, with liabilities not overly burdensome relative to equity.

In terms of profitability, Flowserve Corp's return on equity (ROE) of 3.8% and return on assets (ROA) of 1.44% are below the industry median for industrial machinery and equipment firms, indicating that the company is not generating returns as efficiently as its peers. The operating margin of 10.4% is also below the industry median, suggesting that the company may be facing cost pressures or pricing challenges.

Flowserve Corp's revenue is concentrated in a few key markets, with the energy sector accounting for a significant portion of its business. The company's geographic exposure is primarily in North America and the Middle East, with a smaller presence in Europe and Asia. This concentration may expose the company to regional economic fluctuations and geopolitical risks.

The company's growth trajectory is modest, with a projected revenue increase of 2.5% in the current fiscal year and a 1.8% increase in the following year. This growth is driven by demand in the energy sector, particularly in oil and gas infrastructure projects. However, the company's free cash flow of $58.23 million and operating cash flow of $62.26 million indicate that it is generating sufficient cash to support operations and potentially fund growth initiatives.

Flowserve Corp faces several risk factors, including liquidity risk due to its net cash position being negative after subtracting total debt. The company's risk assessment indicates a medium liquidity risk and a low dilution risk, with no significant dilution expected in the near term. The company has not made any recent equity issuances or announced plans for additional capital raising, which supports the low dilution risk assessment.

Recent events include the company's latest earnings report, which showed a net income of $74.22 million and an operating income of $113.08 million. The company's management has also indicated a focus on cost optimization and operational efficiency to improve profitability. Analysts have provided a mean price target of $93.50 and a median price target of $97.00, with a mean recommendation of 1.85, indicating a generally positive outlook.

Flowserve Corporation (F1LS34.SA) has entered the analyst coverage radar for the first time, with no prior basis for delta computation in its material changes. This initial analysis establishes a baseline for the industrial technology company, which is currently tracked by nine analysts and held by 35 top institutional investors. The absence of previous comparative data means that current metrics represent the starting point for future performance tracking rather than a deviation from a known trend. The most significant recent activity involves a major modification in holdings by investor ID 587. Data detected on June 27, 2026, indicates that this investor increased their position to 15,613 shares, valued at approximately $1.15 million, representing a weight of 0.00066% in their portfolio as of March 31, 2026. This stands in contrast to an earlier detection on June 20, 2026, which recorded the same investor holding only 2,323 shares, valued at roughly $0.17 million. These conflicting signals regarding the same investor’s position size within a week highlight the volatility or reporting adjustments in the shareholder registry. The shift from a smaller stake of 2,323 shares to a significantly larger holding of 15,613 shares suggests a substantial accumulation of equity by this specific entity during the reporting period ending March 31, 2026. For Flowserve, this change in holder composition is notable given the company’s current profile. With no index memberships and a focused analyst following, movements by individual investors can signal early shifts in sentiment. The increase in shares held by investor ID 587 adds to the depth of the top 35 holders, potentially indicating growing institutional interest in the company’s industrial solutions segment.

Free cash flow surged 45.7% year-over-year to $284.7 million in fiscal 2026, demonstrating strong cash generation capabilities.

Net income grew 22.5% year-over-year to $346.2 million in fiscal 2026, reflecting significant profitability expansion.

Revenue CAGR of 7.5% over four years shows consistent top-line growth momentum through fiscal 2026.

The company carries a high credit risk flag, suggesting potential difficulties in meeting debt obligations or maintaining creditworthiness.

Debt-to-equity ratio of 0.62 places the company in the bottom quartile of its peer cohort, indicating high leverage.

Cash conversion ratio of 0.84 falls below the 0.95 cohort median, indicating less efficient translation of earnings to cash.

Revenue $1.22B, +3,5% YoY; Operating income −72,4% YoY.

• ▍Revenue $1.22B, +3,5% YoY
• ▍Operating income −72,4% YoY
• ▍Net income −137,4% YoY
• ▍Free cash flow −203,9% YoY
• ▍Net margin -2.4%

Revenue $1.17B, +3,6% YoY; Operating income −24,6% YoY.

• ▍Revenue $1.17B, +3,6% YoY
• ▍Operating income −24,6% YoY
• ▍Net income +276,1% YoY
• ▍Free cash flow +544,7% YoY
• ▍Net margin 18.7%

Revenue $1.19B, +2,7% YoY; Operating income +19,6% YoY.

• ▍Revenue $1.19B, +2,7% YoY
• ▍Operating income +19,6% YoY
• ▍Net income +12,6% YoY
• ▍Free cash flow +23,8% YoY
• ▍Net margin 6.9%

Revenue $1.14B, +5,2% YoY; Operating income +15,3% YoY.

• ▍Revenue $1.14B, +5,2% YoY
• ▍Operating income +15,3% YoY
• ▍Net income −0,4% YoY
• ▍Free cash flow +10,8% YoY
• ▍Net margin 6.5%

Revenue $1.18B; Operating income $124.7M.

• ▍Revenue $1.18B
• ▍Operating income $124.7M
• ▍Net margin 6.6%

Revenue $1.13B; Operating income $103.2M.

• ▍Revenue $1.13B
• ▍Operating income $103.2M
• ▍Net margin 5.2%

Revenue $1.16B; Operating income $121.3M.

• ▍Revenue $1.16B
• ▍Operating income $121.3M
• ▍Net margin 6.3%

Revenue $1.09B; Operating income $113.1M.

• ▍Revenue $1.09B
• ▍Operating income $113.1M
• ▍Net margin 6.8%

Revenue $4.73B, +3,8% YoY; Operating income −16,1% YoY.

• ▍Revenue $4.73B, +3,8% YoY
• ▍Operating income −16,1% YoY
• ▍Net income +22,4% YoY
• ▍Free cash flow +45,7% YoY
• ▍Net margin 7.3%

Revenue $4.56B, +5,5% YoY; Operating income +38,6% YoY.

• ▍Revenue $4.56B, +5,5% YoY
• ▍Operating income +38,6% YoY
• ▍Net income +51,4% YoY
• ▍Free cash flow +67,5% YoY
• ▍Net margin 6.2%

Revenue $4.32B, +19,5% YoY; Operating income +69,1% YoY.

• ▍Revenue $4.32B, +19,5% YoY
• ▍Operating income +69,1% YoY
• ▍Net income −1,0% YoY
• ▍Free cash flow +7,8% YoY
• ▍Net margin 4.3%

Revenue $3.62B, +2,1% YoY; Operating income −12,2% YoY.

• ▍Revenue $3.62B, +2,1% YoY
• ▍Operating income −12,2% YoY
• ▍Net income +49,8% YoY
• ▍Free cash flow +41,4% YoY
• ▍Net margin 5.2%