Stock fact sheet · data as of
Flowserve Corporation (FLS): fair value, margin of safety and Wheel Score
Industrials · Industrial - Machinery · United States · Blend
Is FLS undervalued?
Flowserve Corporation (FLS) closed at 70.77 on 16 Oct 2026, close to the GLS average fair value of 69.84 (1.3% above fair value). 4 of the 9 models that produced a number sit above the price, 5 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
There is a wide gap between DDM (12.80) and GLS Growth (178.07). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files FLS under Blend.
Nine valuation models for FLS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 25.97 | -63% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 34.04 | -52% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 91.35 | +29% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 34.35 | -51% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 178.07 | +152% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 91.98 | +30% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 127.64 | +80% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 12.80 | -82% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 32.32 | -54% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -3.23 | -105% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 89.60 | +27% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Flowserve Corporation scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability FLS scores 6.1/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 8.8%, ROE 15.8%, ROA 6.1% - with debt at 0.80 times equity and a free-cash-flow yield of 4.6%.
The dividend yield is 1.23% with a payout ratio of 29% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Aftermarket Equipment 58%, Original Equipment 42% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 1 Oct 2026.
| Piotroski F-score | 6 / 9 | ROIC | 8.8% |
|---|---|---|---|
| GLS Moat | 6.1 / 10 | ROE | 15.8% |
| Debt / equity | 0.80 | ROA | 6.1% |
| Free-cash-flow yield | 4.6% | Payout ratio | 29% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 74: Good
With a Wheel Score of 74 - the Good band - Flowserve Corporation clears the Sunday Scan's "70 or higher" rule. The parts: Value 12/25, Health 13/20, Moat 9/15, Premium 20/20, Stability 19/20; Value (12/25) scores lowest.
Implied volatility is 51% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 6,096 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.8M shares a day on a market cap of $9.0B, with a beta of 1.25 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 12 / 25 | -1% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 9 / 15 | moat 6.1/10 | |
| Premium | 20 / 20 | implied volatility 51% | |
| Stability | 19 / 20 | 1.8M shares/day, $9.0B cap, beta 1.25 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Flowserve Corporation reports earnings on 27 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Industrial - Machinery
The 12 companies below are the closest to Flowserve Corporation by market cap within the Industrial - Machinery industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PNR Pentair plc | 52.11 | 70.59 | +26% | 89Prime | $8.3B |
| MOD Modine Manufacturing Company | 154.01 | 77.34 | -99% | 50Fair | $8.2B |
| AOS A. O. Smith Corporation | 59.47 | 74.36 | +20% | 82Prime | $8.1B |
| DCI Donaldson Company, Inc. | 87.77 | 57.36 | -53% | 61Fair | $10.2B |
| ZWS Zurn Elkay Water Solutions Corporation | 47.09 | 44.58 | -6% | 74Good | $7.8B |
| RRX Regal Rexnord Corporation | 157.06 | 118.20 | -33% | 64Fair | $10.5B |
| GNRC Generac Holdings Inc. | 198.40 | 143.86 | -38% | 58Fair | $11.7B |
| WTS Watts Water Technologies, Inc. | 352.10 | 189.99 | -85% | 61Fair | $11.8B |
| MAIR Madison Air Solutions Corporation | 23.47 | 4.80 | -389% | 42Weak | $11.8B |
| CR Crane Company | 205.73 | 95.92 | -114% | 51Fair | $11.9B |
| GTES Gates Industrial Corporation plc | 26.34 | 27.86 | +5% | 82Prime | $6.7B |
| INIO INNIO N.V. Ordinary Shares | 16.50 | 6.18 | -167% | 40Weak | $12.4B |
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Start free See the Sunday ScanQuestions about FLS
Is FLS undervalued right now?
Not meaningfully: at 70.77 the stock trades within a few percent of the GLS average fair value of 69.84 (1.3% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of FLS and what does it mean?
FLS scores 74 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for FLS?
69.84 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Flowserve Corporation report earnings next?
The next earnings report is due on 27 Oct 2026 (after the close), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does FLS have listed options, and how liquid are they?
Yes. The nightly snapshot found 166 listed contracts with 6,096 open interest across all expiries and implied volatility of 51% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.