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$31.34 - $47.86$39.07
Multi-Stage$43.69 - $47.92$45.76
Blended Fair Value$42.42
Current Price$53.14
Upside-20.17%
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 Rate9.06%9.06%9.06%
Growth Rate0.28%1.28%2.28%
Fair Value$31.34$39.07$47.86
Upside / Downside-41.02%-26.47%-9.93%

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 Rate9.06%9.06%9.06%
Growth Rate0.28%1.28%2.28%
Year 1 PV (M)156.05157.60159.16
Year 2 PV (M)193.74197.62201.55
Year 3 PV (M)224.35231.13238.05
Year 4 PV (M)248.78258.85269.23
Year 5 PV (M)267.82281.44295.61
PV of Terminal Value (M)4,674.944,912.725,160.08
Equity Value (M)5,765.676,039.376,323.67
Shares Outstanding (M)131.97131.97131.97
Fair Value$43.69$45.76$47.92
Upside / Downside-17.78%-13.88%-9.82%

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