Flexible Solutions International Inc. Common Stock (CDA) (FSI)

FairStock Score: 18/100 — RISKY

Key Financials

AI Analysis

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

As a value investor, I start with the business and the price. Flexible Solutions is a tiny specialty chemicals maker with 78 employees, selling evaporation-control chemistries and biodegradable polymers. That can be a decent niche, but the numbers show no durable moat right now. Revenue has been roughly flat: $38.3M in fiscal 2023, $38.2M in fiscal 2024, and $38.5M in fiscal 2025. Profit collapsed from $3.0M in fiscal 2024 to $786,894 in fiscal 2025. The latest reported quarter, fiscal Q2 2026 ended 2026-06-30, produced $7.6M revenue and a $1.9M net loss, versus fiscal Q2 2025 ended 2025-06-30 with $11.4M revenue and $2.0M net income. Fiscal Q1 2026 ended 2026-03-31 also lost $241,420. Trailing free cash flow is negative $3.5M. The balance sheet has debt/equity of 0.25, so leverage is not extreme, and FairStock's Altman Z-score of 3.37 suggests low near-term distress risk under that model. But FairStock calculations show negative returns: ROE -3.98%, ROCE -2.09%, and a Piotroski F-score of 4/9, not a sign of improving fundamentals. Valuation is the problem. At the 2026-10-13 close of $6.08, market cap is $77.7M, P/B is 2.10, and P/E is negative at -24.32 because EPS is -$0.25. EV/EBITDA is 315.34, so the enterprise is priced at an enormous multiple of scarce operating earnings. FairStock Score 18/100 and the Lynch cyclical classification fit a chemicals business whose earnings swing with the cycle. I would want evidence of restored margins, positive cash flow, and a price that offers a margin of safety. Today I see a struggling cyclical with a weak moat and a demanding price relative to current profits.

In plain English: Flexible Solutions makes specialty chemicals used to slow water evaporation and to make biodegradable polymers. The business looks weak right now: the latest quarter had lower sales and a loss, and it is burning cash. At $6.08 a share, the price looks expensive compared with current profits because there are none, though the company has only modest debt.

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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