Flowserve (FLS): Revisiting Valuation After D1’s Stake Increase and Strong Q3 Margin, Cash Flow Gains

D1 Capital Partners just made a big statement on Flowserve (FLS), lifting its stake to roughly 7.5 million shares after third quarter results showed better margins, stronger cash generation, and a tilt toward stickier aftermarket revenue.

See our latest analysis for Flowserve.

That conviction from D1 comes as Flowserve’s share price has climbed to $72.46, with a strong 90 day share price return of 27.89 percent and a powerful three year total shareholder return of 146.97 percent, suggesting positive momentum is firmly building.

If you like the institutional interest and improving fundamentals story here, it could be a good moment to see what else is out there with fast growing stocks with high insider ownership

With shares hovering just below analyst targets and trading at a modest intrinsic discount despite solid growth in earnings and cash flow, is Flowserve still a bargain for patient investors, or is the market already discounting potential future gains?

Most Popular Narrative Narrative: 5.7% Undervalued

With Flowserve last closing at $72.46 versus a fair value of $76.80 in the most followed narrative, the valuation case leans modestly in investors’ favor.

The analysts have a consensus price target of $66.5 for Flowserve based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $76.0, and the most bearish reporting a price target of just $60.0.

Read the complete narrative.

Curious how steady but unspectacular growth assumptions still justify a premium valuation multiple and rising margins over time? The narrative hinges on specific earnings, revenue, and profitability targets that quietly reshape what investors are really paying for each future dollar of profit.

Result: Fair Value of $76.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that narrative could quickly unravel if nuclear project momentum falters, or if integration challenges in the Flow Control Division drag on margins and growth.

Find out about the key risks to this Flowserve narrative.

Build Your Own Flowserve Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way

A great starting point for your Flowserve research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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