FLS - Embedded Expectations Analysis - 2019 02 05
ï€Flowserve Corporation (FLS:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 29.7x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about gross margins, power market sales, backlog issues, and cost managementï€Specifically, management may lack confidence in their ability to sustain operational and financial results, and may be concerned about seasonality and currency headwinds. Also, they may be concerned about their ability to maintain stable performance in the power market and benefit from technology innovations. Furthermore, they may be overstating the possibility of production facility expansions, and their excitement about the interstate pipeline. Moreover, they may also lack confidence in their ability to handle backlogs, and may be concerned about escalating backlog issues. Additionally, they may lack confidence in their ability to minimize delays, and may be concerned about customer MRO spending. They may also lack confidence in their ability to simplify and improve their business model, and in the success of their enterprise CRM system. Finally, they may lack confidence in their ability to improve cost management and progress on cost and revenue targets
Flowserve is a manufacturer and aftermarket service provider of flow control systems. The company develops and manufactures flow control equipment integral to the movement, control and protection of the flow of materials in its customers' processes. The company's segments are: Flowserve Pump Division, which are for custom, pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and Flow Control Division, which are for engineered and industrial valves, control valves, actuators and controls and related services.
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