Flowserve Corporation Common Stock (FLS)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Flowserve is a solid industrial franchise, not a glamorous one. It sells pumps, seals and flow-control equipment, much of it into critical applications where downtime is expensive. That installed base creates recurring service and parts revenue, which is the closest thing to a moat here. In fiscal Q2 2026, the quarter ended 2026-06-30, filed revenue was $1.2B and net income was $99.0M, or diluted EPS of $0.77; that compares with $81.8M and $0.62 in fiscal Q2 2025, the quarter ended 2025-06-30. For FY2025, the year ended 2025-12-31, filed revenue was $4.7B with net income of $346.2M and diluted EPS of $2.64, up from FY2024, the year ended 2024-12-31, net income of $282.8M and diluted EPS of $2.14. Profits have improved faster than sales, which is good, but revenue growth is not exciting. Financial health is mixed. FairStock calculations as of the 2026-10-13 close show ROE of 16.94%, but ROCE of only 6.47%, debt-to-equity of 1.00, and an Altman Z-Score of 2.90, which is not a fortress. Free cash flow yield is 4.5%, and the Piotroski F-Score is 5/9. On valuation, the price of $71.47 gives a P/E of 24.90, P/B of 4.02, EV/EBITDA of 14.61 and PEG of 1.18. The Graham Number is $33.87, so the shares trade about 111% above that conservative asset-based figure. FairStock's Lynch category is STALWART, citing 21.6% annual profit growth over five years but only 4.9% revenue growth. I see a decent business with aftermarket strength, but the price already reflects much of the profit improvement, and returns on capital are not high enough to call it a bargain.

In plain English: Flowserve makes pumps, seals and flow-control equipment for factories, energy and water systems, and it services that installed equipment. The business earns decent profits and has grown them, but sales have been roughly flat, and the shares look expensive compared with the company's profits and assets. It looks like a fair-to-expensive price for a steady industrial company rather than a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer