A Holistic Look At Flexible Solutions International Inc (NYSEMKT:FSI)

Flexible Solutions International Inc (NYSEMKT:FSI) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of FSI, it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Flexible Solutions International here.

Flawless balance sheet and undervalued

FSI’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that FSI manages its cash and cost levels well, which is an important determinant of the company’s health. FSI’s has produced operating cash levels of 5.43x total debt over the past year, which implies that FSI’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. FSI is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of FSI’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, FSI’s share price is trading below the group’s average. This bolsters the proposition that FSI’s price is currently discounted.

AMEX:FSI Intrinsic Value Export November 15th 18
AMEX:FSI Intrinsic Value Export November 15th 18

Next Steps:

For Flexible Solutions International, I’ve compiled three key aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for FSI’s future growth? Take a look at our free research report of analyst consensus for FSI’s outlook.
  2. Historical Performance: What has FSI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FSI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.