Flowserve Corporation (FLS): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

By Zacks Investment Research,

Shutterstock photo

We are upgrading our recommendation on Flowserve to Neutral from Underperform following the company's SIHI acquisition in November. This acquisition is expected to boost the opportunistic investments and product offering expansions for Flowserve in the long term. Also, after the completion of the buyout, margins for the company's Industrial Product Division are expected to be enhanced by 14 15%. Moreover, Flowserve's recent share repurchase authorization enhanced investors' confidence in the stock. However, the unfavorable currency translations and short-term realignment expenses remain matters of concern for the company. Also, competitive pressure tends to drag the company's financials.


Flowserve Corporation was founded in 1912 and is headquartered in Irving, TX. The company is a leading manufacturer and aftermarket service provider of comprehensive flow control systems, globally. Flowserve develops and manufactures precision-engineered flow control equipment, such as pumps, valves, and seals, for critical service applications that require high reliability. Flowserve uses its manufacturing platform to offer a broad array of aftermarket equipment services, such as installation, advanced diagnostics, repair, and retrofitting. The company uses a footprint of Quick Response Centers (QRCs) around the globe to deliver these aftermarket services.

Flowserve Corporation operates in over 50 countries in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Flowserve currently has three reportable segments:

FSG Engineered Product Division (EPD): The segment's operations include the longer lead-time, highly engineered pump product operations of the former Flowserve Pump Division and substantially all of the mechanical seal operations of the former Flow Solutions Division. The segment accounts for around 51% of 2013 revenues.

FSG Industrial Product Division (IPD): The segment's operations include the more standardized, general purpose pump product operations of the former Flowserve Pump Division. The segment accounts for around 19% of 2013 revenues.

Flow Control Division (FCD): The segment includes industrial valve and related automation products and solutions. The segment accounts for around 30% of 2013 revenues.

Flowserve Corporation (FLS): Read the Full Research Report
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

FLOWSERVE CORP (FLS): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: EPD , FLS , IPD

More from Zacks.com




Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com