Our analysis is based on comparing Flowserve Corp. with the following peers – IDEX Corporation, Colfax Corporation, Graco Inc., Gorman-Rupp Company, Parker-Hannifin Corporation, ITT, Inc., Xylem Inc., Illinois Tool Works Inc., Dover Corporation and Ingersoll-Rand Plc (IEX-US, CFX-US, GGG-US, GRC-US, PH-US, ITT-US, XYL-US, ITW-US, DOV-US and IR-US).
Flowserve Corp.’s dividend yield is 1.76 percent and its dividend payout is 93.83 percent. This compares to a peer median dividend yield of 1.45 percent and a payout level of 42.71 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 92 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2017), FLS-US paid a high quality dividend, which represents a yield of 1.76% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were high quality and 1 was medium quality.
- The ending cash balance, with a dividend coverage of 5.10x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to June 30, 2017), FLS-US paid a high quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.73x), investing cash flow (coverage of 1.05x), issuance cash flow (coverage of -0.46x) and twelve-month prior cash (coverage of 2.68x), for a total dividend coverage of 6.10x.
FLS-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.41x).
These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.
|Dividend Yield (%)||1.04||0.71||1.06||1.72||1.57||1.76|
|Dividend Payout (%)||16.92||16.42||17.02||37.31||75.25||93.83|
A complete list of metrics and analysis is available on the company page.
Flowserve Corp. develops and manufactures precision-engineered flow control equipment integral to the movement, control and protection of the flow of materials in its customer’s critical processes. It also engaged in providing fluid motion and control products and services. The company manufactures and supplies engineered and industrial pumps, seals and valves as well as a range of related flow management services. It also provides automation and services to the power, oil, gas, chemical and other industries. The company operates through the following segments: Engineered Product, Industrial Product, and Flow Control Division. The Engineered Product Division segment designs, manufacture, distribute and service custom and other highly-engineered pumps and pump systems, mechanical seals and auxiliary systems. The Industrial Product Division segment designs, manufacture, distribute and service engineered, pre-configured industrial pumps and pump systems, including submersible motors and specialty products. The Flow Control Division segment designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products, boiler controls and related services. Flowserve was founded in 1997 and is headquartered in Irving, TX.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.