Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Flowserve Corporation (FLS)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$38.82 - $63.76$49.92
Multi-Stage$61.81 - $67.90$64.80
Blended Fair Value$57.36
Current Price$53.14
Upside7.94%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.10%2.64%0.840.800.790.790.790.750.750.750.740.71
YoY Growth--5.23%0.39%-0.05%0.43%4.62%0.14%0.18%1.52%4.37%10.02%
Dividend Yield--1.71%1.73%2.33%2.21%2.03%3.16%1.62%1.74%1.53%1.60%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)452.78
(-) Cash Dividends Paid (M)110.26
(=) Cash Retained (M)342.52
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)90.5656.6033.96
Cash Retained (M)342.52342.52342.52
(-) Cash Required (M)-90.56-56.60-33.96
(=) Excess Retained (M)251.96285.92308.56
(/) Shares Outstanding (M)131.97131.97131.97
(=) Excess Retained per Share1.912.172.34
LTM Dividend per Share0.840.840.84
(+) Excess Retained per Share1.912.172.34
(=) Adjusted Dividend2.743.003.17
WACC / Discount Rate7.37%7.37%7.37%
Growth Rate0.28%1.28%2.28%
Fair Value$38.82$49.92$63.76
Upside / Downside-26.95%-6.06%19.98%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)452.78458.59464.47470.43476.46482.57497.05
Payout Ratio24.35%37.48%50.61%63.74%76.87%90.00%92.50%
Projected Dividends (M)110.26171.89235.08299.86366.26434.32459.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.37%7.37%7.37%
Growth Rate0.28%1.28%2.28%
Year 1 PV (M)158.50160.08161.66
Year 2 PV (M)199.89203.90207.94
Year 3 PV (M)235.12242.22249.47
Year 4 PV (M)264.82275.54286.59
Year 5 PV (M)289.58304.31319.63
PV of Terminal Value (M)7,008.427,364.897,735.72
Equity Value (M)8,156.338,550.948,961.01
Shares Outstanding (M)131.97131.97131.97
Fair Value$61.81$64.80$67.90
Upside / Downside16.31%21.94%27.78%

High-Yield Dividend Screener

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