January 2, 2025
Top 10 Stock Flowserve Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Flowserve Strong Buy

360 METRICS	January 2, 2025
VALUE
VALUE	71
GROWTH
GROWTH	100
SAFETY
SAFETY	29
SENTIMENT
SENTIMENT	55
360° VIEW
360° VIEW	79

ANALYSIS: With an Obermatt 360° View of 79 (better than 79% compared with alternatives) for 2025, overall professional sentiment and financial characteristics for the stock Flowserve are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Flowserve. The consolidated Value Rank has an attractive rank of 71, which means that the share price of Flowserve is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 71% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 100, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 55. But the company’s financing is risky with a Safety rank of 29. This means 71% of comparable companies have a safer financing structure than Flowserve. ...read more

RECOMMENDATION: With a consolidated 360° View of 79, Flowserve is better positioned than 79% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 71), above-average growth (Growth Rank of 100), and positive market sentiment in the professional investor community (Sentiment Rank of 55), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the company financing structure is on the riskier side (Safety Rank of 29), but that would also mean better returns for shareholders if things work out well. Good value is sometimes an indication that the company's future is challenging. If they have been growing above average and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Flowserve is as difficult as the low price of the stock, despite good growth and positive professional investor sentiment, suggests. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible right now, which may indicate good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for Flowserve positive

SENTIMENT METRICS	January 2, 2025
ANALYST OPINION
ANALYST OPINION	85
OPINIONS CHANGE
OPINIONS CHANGE	14
PRO HOLDINGS
PRO HOLDINGS	67
MARKET PULSE
MARKET PULSE	42
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	55

ANALYSIS: With an Obermatt Sentiment Rank of 55 (better than 55% compared with alternatives), overall professional sentiment and engagement for the stock Flowserve is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and the other half above average for Flowserve. Analyst Opinions are at a rank of 85 (better than 85% of alternative investments). Currently, stock research analysts tend to recommend a stock investment in the company. There are also many institutional investors invested in the stock, represented by a Professional Investors rank of 67 which means that currently, professional investors hold more stock in this company than in 67% of alternative investment opportunities. But Analyst Opinions Change has a rank of 14, which means that stock research experts are changing their opinions for the worse in recommending investing in the company. In other words, they are getting more critical of investments in Flowserve. Furthermore, Market Pulse has a rank of 42, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 58% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 55 (more positive than 55% compared with investment alternatives), Flowserve has a reputation among professional investors that is above-average compared with that of its competitors. Three below-market sentiment indicators are a sign of caution, even if the stock has significantly appreciated. If analysts change their opinions, the stock may become too expensive. If the price is on the way down, the trend may continue. This may be a stock with a good reputation and history, but it may have reached its breaking point by now. Investors should look at the Value Ranks as well. If they indicate trouble, it may be around the corner. ...read more

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Value Strategy: Flowserve Stock Price Value better than average

VALUE METRICS	January 2, 2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	61
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	61
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	37
DIVIDEND YIELD
DIVIDEND YIELD	79
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	71

ANALYSIS: With an Obermatt Value Rank of 71 (better than 71% compared with alternatives), Flowserve shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Flowserve. Price-to-Sales (P/S) is 61, which means that the stock price compared with what market professionals expect for future sales is lower than for 61% of comparable companies, indicating a good value concerning Flowserve's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 61% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 79 (dividends are expected to be higher than 79% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 63% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Flowserve to 37. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 71, is a buy recommendation based on Flowserve's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. ...read more

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Growth Strategy: Flowserve Growth Momentum high

GROWTH METRICS	January 2, 2025
REVENUE GROWTH
REVENUE GROWTH	79
PROFIT GROWTH
PROFIT GROWTH	89
CAPITAL GROWTH
CAPITAL GROWTH	100
STOCK RETURNS
STOCK RETURNS	87
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	100

ANALYSIS: With an Obermatt Growth Rank of 100 (better than 100% compared with alternatives) for 2025, Flowserve shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Flowserve. Sales Growth has a value of 79, which means that, currently, professionals expect the company to grow more than 79% of its competitors. The same is valid for Profit Growth with a value of 89 and for Capital Growth with 100. In addition, Stock Returns had an above-average rank value of 87, which means they have been higher than 87% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 100, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Flowserve exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. ...read more

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Safety Strategy: Flowserve Debt Financing Safety below-average

SAFETY METRICS	January 2, 2025
LEVERAGE
LEVERAGE	30
REFINANCING
REFINANCING	61
LIQUIDITY
LIQUIDITY	39
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	29

ANALYSIS: With an Obermatt Safety Rank of 29 (better than 29% compared with alternatives), the company Flowserve has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Flowserve is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Flowserve and the other two below average. Refinancing is at 61, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 61% of its competitors. But Leverage is high with a rank of 30, meaning the company has an above-average debt-to-equity ratio. It has more debt than 70% of its competitors. Liquidity is also on the riskier side with a rank of 39, meaning the company generates less profit to service its debt than 61% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 29 (worse than 71% compared with alternatives), Flowserve has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Flowserve are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. ...read more

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Combined financial peformance: Flowserve Top Financial Performance

COMBINED PERFORMANCE	January 2, 2025
VALUE
VALUE	71
GROWTH
GROWTH	100
SAFETY
SAFETY	39
COMBINED
COMBINED	85

ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Flowserve (Industrial Machinery, USA) shares have much better financial characteristics than comparable stocks. Shares of Flowserve are a good value (attractively priced) with a consolidated Value Rank of 71 (better than 71% of alternatives), show above-average growth (Growth Rank of 100) but are riskily financed (Safety Rank of 29), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Flowserve's financial characteristics. As the company Flowserve's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 71) and above-average growth (Obermatt Growth Rank of 100), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 29) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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