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INDIA - 2025/06/08: In this photo illustration, a Flowserve logo is seen displayed on a smartphone and in the background. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Flowserve (FLS) stock has surged 31% in the last day, on the back of good earnings, and is now trading at $68.95. Our multi-factor analysis indicates that it might be the right moment to acquire additional shares of FLS stock. Overall, we maintain a favorable outlook on the stock, and a target price of $90 could be attainable. However, we think there are a few considerations to be cautious about in FLS stock given its general Moderate operational performance and financial status. In light of the stock's Low valuation, we find it Attractive. Below is our assessment: Quiz time: Over the last 5 years, which index do you think the Trefis High Quality Portfolio has surpassed - the S&P 500, S&P 1500 Equal Weighted, or both? The answer may come as a surprise. Discover how our advisory framework empowers you to stack the odds in your favor. Let’s delve into details of each of the assessed factors but first, for a brief background: With $9.0 Bil in market capitalization, Flowserve offers custom and pre-configured pumps, mechanical seals, auxiliary systems, and aftermarket services for managing the flow of liquids, gases, and fluids worldwide. [1] Valuation Appears Low MORE FOR YOU This table indicates how FLS is valued compared to the broader market. For more information see: FLS Valuation Ratios [2] Growth Is Moderate Flowserve has experienced its top line expand at an average rate of 10.5% over the last 3 years Its revenues have increased 3.2% from $4.5 Bil to $4.7 Bil in the last 12 months Additionally, its quarterly revenues rose 3.6% to $1.2 Bil in the most recent quarter from $1.1 Bil a year prior. This table illustrates how FLS is growing compared to the broader market. For more information see: FLS Revenue Comparison [3] Profitability Seems Weak FLS's operating income over the last 12 months was $462 Mil, reflecting an operating margin of 9.9% With a cash flow margin of 15.0%, it generated close to $703 Mil in operating cash flow during this time For the same period, FLS produced almost $453 Mil in net income, indicating a net margin of approximately 9.7% Profitability This table shows the profitability of FLS compared to the broader market. For more information see: FLS Operating Income Comparison [4] Financial Stability Appears Very Strong FLS's Debt was $1.7 Bil at the end of the latest quarter, while its current Market Cap is $9.0 Bil. This suggests a Debt-to-Equity Ratio of 18.5% FLS Cash (including cash equivalents) constitutes $834 Mil of $5.8 Bil in total Assets. This results in a Cash-to-Assets Ratio of 14.3% Financial Stability [5] Downturn Resilience Is Very Weak FLS has performed significantly worse than the S&P 500 index during various economic downturns. We evaluate this based on both (a) how much the stock declined and, (b) how quickly it bounced back. 2022 Inflation Shock FLS stock dropped 45.2% from a high of $44.31 on 8 June 2021 to $24.30 on 30 September 2022, while the S&P 500 experienced a peak-to-trough decrease of 25.4%. Nonetheless, the stock fully rebounded to its pre-Crisis peak by 13 March 2024 Since that time, the stock surged to a high of $68.95 on 29 October 2025 Inflation Shock 2020 Covid Pandemic FLS stock plunged 62.0% from a high of $50.68 on 2 January 2020 to $19.24 on 23 March 2020, while the S&P 500 saw a peak-to-trough decline of 33.9%. However, the stock entirely recovered to its pre-Crisis peak by 16 July 2024 Covid Pandemic 2008 Global Financial Crisis FLS stock declined 73.2% from a high of $47.12 on 21 July 2008 to $12.64 on 20 November 2008, contrasted with a peak-to-trough fall of 56.8% for the S&P 500. Nonetheless, the stock completely bounced back to its pre-Crisis peak by 6 December 2012 2008 Global Financial Crisis However, the risk isn't confined to significant market downturns. Stocks can decline even in favorable market conditions - consider events such as earnings announcements, business updates, or changes in outlook. Read FLS Dip Buyer Analyses to understand how the stock has recovered from sharp declines in the past. The Trefis High Quality (HQ) Portfolio, which includes a selection of 30 stocks, has consistently outperformed its benchmark that includes all three - S&P 500, Russell, and S&P midcap. What accounts for this? As a collective, HQ Portfolio stocks yielded superior returns with lower risk compared to the benchmark index; resulting in a more stable investment experience, as reflected in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
