📊 FLS Key Takeaways
Is Flowserve Corp. (FLS) a Good Investment?
Flowserve faces critical fundamental deterioration masked by accounting anomalies: operating cash flow is negative ($-43.1M) despite $81.7M net income, indicating severe quality-of-earnings issues. Returns on capital are distressed (ROE 3.7%, ROA 1.4%), and revenue data reporting ($0.00) reveals potential data integrity problems requiring immediate clarification.
Flowserve shows solid underlying fundamentals with healthy profitability, strong free cash flow generation, and a balanced liquidity position. ROE of 15.8%, positive operating income, and over $434 million of free cash flow indicate a durable operating base, but the reported revenue collapse to $0.00 and missing margin figures create a meaningful data-quality gap that limits conviction on current trend strength.
Why Buy Flowserve Corp. Stock? FLS Key Strengths
- Solid balance sheet with $2.2B stockholders equity and $792.4M cash
- Strong liquidity position (Current Ratio 2.22x, Quick Ratio 1.63x)
- Moderate leverage (Debt/Equity 0.75x) with acceptable interest coverage of 5.8x
- Strong cash generation, with operating cash flow of $505.88M and free cash flow of $434.96M
- Healthy liquidity profile, including a 2.03x current ratio, 1.50x quick ratio, and $760.18M in cash
- Profitable business with $399.92M operating income, $346.25M net income, 15.8% ROE, and diluted EPS growth of 23.4% YoY
FLS Stock Risks: Flowserve Corp. Investment Risks
- Severe cash generation crisis: negative $60.0M free cash flow while reporting positive earnings signals earnings quality breakdown
- Data integrity concerns: reported $0.00 revenue with positive gross profit and operating income is mathematically impossible
- Critically low returns on capital (ROE 3.7%, ROA 1.4%) indicate poor capital efficiency and value destruction
- Revenue reported at $0.00 with -100.0% YoY suggests a major data inconsistency, making trend analysis less reliable
- Interest coverage of 5.1x and $1.58B of long-term debt indicate leverage is manageable but not trivial
- Missing gross, operating, and net margin figures reduce visibility into operating efficiency and earnings quality
Key Metrics to Watch
- Operating cash flow trend - current negative position is unsustainable
- Revenue reporting correction and reconciliation with income statement items
- Return on Equity progression - must exceed 8%+ to justify equity investment
- Revenue normalization and order growth in upcoming filings
- Interest coverage and free cash flow consistency
Flowserve Corp. (FLS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.22x current ratio provides a solid financial cushion.
FLS Profit Margin, ROE & Profitability Analysis
FLS vs Industrial Sector: How Flowserve Corp. Compares
How Flowserve Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Flowserve Corp. Stock Overvalued? FLS Valuation Analysis 2026
Based on fundamental analysis, Flowserve Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Flowserve Corp. Balance Sheet: FLS Debt, Cash & Liquidity
FLS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Flowserve Corp.'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.42 reflects profitable operations.
FLS Revenue Growth, EPS Growth & YoY Performance
FLS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.1B | $73.9M | $0.56 |
| Q3 2025 | $1.1B | $58.4M | $0.44 |
| Q2 2025 | $1.2B | $72.6M | $0.55 |
| Q1 2025 | $1.1B | $73.9M | $0.56 |
| Q3 2024 | $1.1B | $46.2M | $0.35 |
| Q2 2024 | $1.1B | $51.2M | $0.39 |
| Q1 2024 | $980.3M | $26.8M | $0.20 |
| Q3 2023 | $872.9M | $38.4M | $0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Flowserve Corp. Dividends, Buybacks & Capital Allocation
FLS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Flowserve Corp. (CIK: 0000030625)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FLS
What is the AI rating for FLS?
Flowserve Corp. (FLS) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FLS's key strengths?
Claude: Solid balance sheet with $2.2B stockholders equity and $792.4M cash. Strong liquidity position (Current Ratio 2.22x, Quick Ratio 1.63x). ChatGPT: Strong cash generation, with operating cash flow of $505.88M and free cash flow of $434.96M. Healthy liquidity profile, including a 2.03x current ratio, 1.50x quick ratio, and $760.18M in cash.
What are the risks of investing in FLS?
Claude: Severe cash generation crisis: negative $60.0M free cash flow while reporting positive earnings signals earnings quality breakdown. Data integrity concerns: reported $0.00 revenue with positive gross profit and operating income is mathematically impossible. ChatGPT: Revenue reported at $0.00 with -100.0% YoY suggests a major data inconsistency, making trend analysis less reliable. Interest coverage of 5.1x and $1.58B of long-term debt indicate leverage is manageable but not trivial.
What is FLS's revenue and growth?
Flowserve Corp. reported revenue of $0.0.
Does FLS pay dividends?
Flowserve Corp. pays dividends, with $26.7M distributed to shareholders in the trailing twelve months.
Where can I find FLS SEC filings?
Official SEC filings for Flowserve Corp. (CIK: 0000030625) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FLS's EPS?
Flowserve Corp. has a diluted EPS of $0.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FLS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Flowserve Corp. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FLS stock overvalued or undervalued?
Valuation metrics for FLS: ROE of 3.7% (sector avg: 15%), net margin of N/A (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy FLS stock in 2026?
Our dual AI analysis gives Flowserve Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FLS's free cash flow?
Flowserve Corp.'s operating cash flow is $-43.1M, with capital expenditures of $16.9M.
How does FLS compare to other Industrial stocks?
Vs Industrial sector averages: Net margin N/A (avg: 10%), ROE 3.7% (avg: 15%), current ratio 2.22 (avg: 1.8).