Flowserve Stock To $90?

Flowserve (FLS) stock has jumped 31% during the past day, and is currently trading at $68.95. Our machine-driven multi-factor assessment suggests that it may be time to buy more shares of FLS stock. We have, overall, a positive view of the stock, and a price of $90 may not be out of reach. We believe there are a few things to fear in FLS stock given its overall Moderate operating performance and financial condition. Considering stock’s Low valuation we think it is Attractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $9.0 Bil in market cap, Flowserve provides custom and pre-configured pumps, mechanical seals, auxiliary systems, and aftermarket services for managing the flow of liquids, gases, and fluids globally.

[1] Valuation Looks Low

This table highlights how FLS is valued vs broader market. For more details see: FLS Valuation Ratios

[2] Growth Is Moderate

• Flowserve has seen its top line grow at an average rate of 10.5% over the last 3 years
• Its revenues have grown 3.2% from $4.5 Bil to $4.7 Bil in the last 12 months
• Also, its quarterly revenues grew 3.6% to $1.2 Bil in the most recent quarter from $1.1 Bil a year ago.

This table highlights how FLS is growing vs broader market. For more details see: FLS Revenue Comparison

[3] Profitability Appears Weak

• FLS last 12 month operating income was $462 Mil representing operating margin of 9.9%
• With cash flow margin of 15.0%, it generated nearly $703 Mil in operating cash flow over this period
• For the same period, FLS generated nearly $453 Mil in net income, suggesting net margin of about 9.7%

This table highlights how FLS profitability vs broader market. For more details see: FLS Operating Income Comparison

[4] Financial Stability Looks Very Strong

• FLS Debt was $1.7 Bil at the end of the most recent quarter, while its current Market Cap is $9.0 Bil. This implies Debt-to-Equity Ratio of 18.5%
• FLS Cash (including cash equivalents) makes up $834 Mil of $5.8 Bil in total Assets. This yields a Cash-to-Assets Ratio of 14.3%

[5] Downturn Resilience Is Very Weak

FLS has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• FLS stock fell 45.2% from a high of $44.31 on 8 June 2021 to $24.30 on 30 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 13 March 2024
• Since then, the stock increased to a high of $68.95 on 29 October 2025 $68.95

 
2020 Covid Pandemic

• FLS stock fell 62.0% from a high of $50.68 on 2 January 2020 to $19.24 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 16 July 2024

 
2008 Global Financial Crisis

• FLS stock fell 73.2% from a high of $47.12 on 21 July 2008 to $12.64 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 6 December 2012

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read FLS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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