Latest news with #Flowserve
Yahoo
7 days ago
- Business
- Yahoo
3 Reasons to Buy Chart Industries (or Flowserve Corporation) Like There's No Tomorrow
Chart Industries and Flowserve recently agreed to merge in an all-stock deal. The two companies outlined significant revenue and cost synergies. Strangely, both bargain-priced stocks fell after the announcement, even as the merger looks beneficial. 10 stocks we like better than Chart Industries › Investors are always searching for new and exciting ways to play the AI revolution, with one being electricity providers. Specifically, nuclear energy stocks have taken off over the past year, given the newfound need for more low-carbon electricity. In spite of that, some industrial stocks that supply the nuclear and natural gas industries really haven't moved very much. Case in point, equipment suppliers Chart Industries (NYSE: GTLS) and Flowserve Corporation (NYSE: FLS) decided to link up in a "merger of equals," on June 4. The tie-up of these key equipment suppliers should save costs while also strengthening both companies' exposure to these crucial LNG and nuclear markets. After the announcement, both stocks look like huge bargains -- a rarity for any AI-exposed stock. Chart Industries is a leader in cryogenic tanks, heat exchangers, fans, and blowers that handle industrial gases and liquids. Meanwhile, Flowserve is a leader in industrial valves, pumps, and flow-control equipment. The companies believe that by combining, they'll be able to offer comprehensive end-to-end industrial systems for customers, from the engineering through aftermarket stages, thus enabling strong cross-selling revenue opportunities. Overall, management believes the tie-up can lead to an incremental 2% growth rate over what the companies would do independently. There's two key markets that each company would like to serve better as a result of the deal: natural gas and nuclear -- each of which are growing in importance because of the accelerating demand for clean electricity from AI data centers. As the following slide shows, Flowserve had only 2% of revenue coming from LNG before the merger, while LNG was a core business for Chart, at 15%. Meanwhile, Flowserve had a more significant exposure to nuclear plants, at 7% of trailing revenues, while Chart had 7% exposure to the nuclear, hydrogen, and helium markets combined. While the rest of Chart and Flowserve's end-markets are typically mid-single digit growth markets, with some a bit higher and some a bit lower, the nuclear and LNG end markets are forecast to realize double-digit growth over the medium term, thanks to surging AI demand. Aside from bolstering each company's growth prospects, the tie-up should also yield substantial cost savings. In conjunction with the merger, the companies projected $300 million in cost synergies, which they believe will be achieved over the next three years. It should be noted that Chart exceeded its projected synergy targets following its 2023 Howden acquisition by a fair amount, which means that $300 million synergy target may also be conservative. So look for the combined company to significantly lower costs and boost margins post-merger. On top of that, there's also a significant refinancing opportunity. Chart used a lot of debt to make the $4.4 billion Howden acquisition, and was still fairly leveraged as of this year. The Howden acquisition also occurred at a difficult time for the markets, so Chart's debt is at rather high and variable interest rates. However, combining with Flowserve will lower the combined company's overall leverage ratio to just 2.0 times EBITDA, which will enable an investment-grade credit rating. That means the companies, when combined, should be able to refinance Chart's debt at lower rates, leading to additional cost savings. Both Chart and Flowserve each appeared undervalued going into the merger as well. While it's usually not a good idea to "sell" or merge using stock when one's valuation is low, the fact that both stocks were trading cheaply lessens the negative effect of the stock-for-stock deal. In fact, I recently ran a screen of specialty industrial equipment companies with market caps above $2 billion, and Chart and Flowserve came up as the cheapest and fourth-cheapest of those 39 stocks on a forward P/E basis at just 10 and 13 times this year's earnings expectations, respectively. While Chart's low valuation may be due to its debt load, even on an enterprise value-to-EBITDA basis, with enterprise value factoring in the debt, the combined companies currently trade at just a 10 EV-to-EBITDA multiple. Many large-cap industrial conglomerates trade in a range of 15 to 20 times EBITDA. With strong positions in some key growth markets, like LNG and nuclear power, I wouldn't expect this discount to last. Thus, both companies appear to be rare bargain-priced stocks with exposure to AI growth -- and will be especially big bargains after the merger closes later this year. Before you buy stock in Chart Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chart Industries wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Billy Duberstein and/or his clients have positions in Chart Industries. The Motley Fool has positions in and recommends Chart Industries. The Motley Fool recommends Flowserve. The Motley Fool has a disclosure policy. 3 Reasons to Buy Chart Industries (or Flowserve Corporation) Like There's No Tomorrow was originally published by The Motley Fool
Malaysian Reserve
09-06-2025
- Business
- Malaysian Reserve
SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates FLS, KNW, ELEV, CRKN on Behalf of Shareholders
NEW YORK, June 9, 2025 /PRNewswire/ — Halper Sadeh LLC, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to: Flowserve Corporation (NYSE: FLS)'s merger with Chart Industries, Inc. Upon completion of the proposed transaction, Flowserve shareholders will own approximately 46.5% of the combined company. If you are a Flowserve shareholder, click here to learn more about your rights and options. Know Labs, Inc. (NYSE American: KNW)'s sale to Goldeneye 1995 LLC. If you are a Know Labs shareholder, click here to learn more about your legal rights and options. Elevation Oncology, Inc. (NASDAQ: ELEV)'s sale to Concentra Biosciences, LLC. Under the terms of the proposed transaction, Elevation shareholders will receive $0.36 in cash per share, plus one non-tradeable contingent value right representing the right to receive: (i) 100% of the closing net cash in excess of $26.4 million; and (ii) 80% of any net proceeds received within five years following closing from any disposition of EO-1022 that occurs within one year following closing. If you are an Elevation shareholder, click here to learn more about your rights and options. Crown Electrokinetics Corp. (OTCMKTS: CRKN)'s sale to Crown EK Acquisition LLC for $3.15 per share. If you are a Crown Electrokinetics shareholder, click here to learn more about your rights and options. Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures and information concerning the proposed transaction, or other relief and benefits on behalf of shareholders. We would handle the action on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses. Shareholders are encouraged to contact the firm free of charge to discuss their legal rights and options. Please call Daniel Sadeh or Zachary Halper at (212) 763-0060 or email sadeh@ or zhalper@ Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors. Attorney Advertising. Prior results do not guarantee a similar outcome. Contact Information:Halper Sadeh LLCDaniel Sadeh, Halper, Esq.(212) 763-0060sadeh@
Yahoo
09-06-2025
- Business
- Yahoo
3 Reasons FLS is Risky and 1 Stock to Buy Instead
Over the past six months, Flowserve's stock price fell to $48.87. Shareholders have lost 19.7% of their capital, disappointing when considering the S&P 500 was flat. This might have investors contemplating their next move. Is there a buying opportunity in Flowserve, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. Despite the more favorable entry price, we're sitting this one out for now. Here are three reasons why FLS doesn't excite us and a stock we'd rather own. In addition to reported revenue, backlog is a useful data point for analyzing Gas and Liquid Handling companies. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into Flowserve's future revenue streams. Flowserve's backlog came in at $2.90 billion in the latest quarter, and over the last two years, its year-on-year growth averaged 3.6%. This performance was underwhelming and suggests that increasing competition is causing challenges in winning new orders. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Flowserve's EPS grew at an unimpressive 5.9% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 3.2% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. As you can see below, Flowserve's margin dropped by 1.7 percentage points over the last five years. This along with its unexciting margin put the company in a tough spot, and shareholders are likely hoping it can reverse course. If the trend continues, it could signal it's becoming a more capital-intensive business. Flowserve's free cash flow margin for the trailing 12 months was 5.1%. Flowserve isn't a terrible business, but it doesn't pass our quality test. After the recent drawdown, the stock trades at 15.1× forward P/E (or $48.87 per share). While this valuation is fair, the upside isn't great compared to the potential downside. We're fairly confident there are better stocks to buy right now. Let us point you toward a dominant Aerospace business that has perfected its M&A strategy. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Business Insider
08-06-2025
- Business
- Business Insider
Flowserve (FLS) Receives a Rating Update from a Top Analyst
In a report released on June 6, Andrew Kaplowitz from Citi maintained a Buy rating on Flowserve (FLS – Research Report). The company's shares closed last Friday at $48.87. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Kaplowitz is a top 25 analyst with an average return of 26.8% and a 72.63% success rate. Kaplowitz covers the Industrials sector, focusing on stocks such as Emerson Electric Company, Fluor, and Rockwell Automation. Currently, the analyst consensus on Flowserve is a Strong Buy with an average price target of $62.25, representing a 27.38% upside. In a report released on June 6, Stifel Nicolaus also maintained a Buy rating on the stock with a $59.00 price target.
Yahoo
08-06-2025
- Business
- Yahoo
Chart Industries and Flowserve Announce $19 Billion All-Stock Merger of Equals
Chart Industries (GTLS, Financials) and Flowserve (FLS, Financials) will merge in an all-stock deal to form a combined industrial process technology company with an enterprise value of approximately $19 billion, the companies said Wednesday. Under the agreement, Chart shareholders will receive 3.165 Flowserve shares for each Chart share owned, resulting in 53.5% ownership by Chart investors in the new entity. Warning! GuruFocus has detected 4 Warning Signs with GTLS. The new company will combine Chart's compression, thermal, and cryogenic systems with Flowserve's pump, valve, and seal portfolio, aiming to deliver integrated solutions with strong digital overlays. Revenue from aftermarket services is projected to reach $3.7 billion annually, driven by a 5.5 million-unit installed base. Chart CEO Jill Evanko will become Chair of the new board, while Flowserve CEO Scott Rowe will lead the combined company as Chief Executive. Headquarters will be in Dallas, with continued presence in Atlanta and Houston. The transaction is expected to close in Q4 2025 pending shareholder and regulatory approvals. The companies expect $300 million in annual cost synergies within three years and incremental revenue growth of 2%. Adjusted earnings per share are projected to be accretive in year one. The combined entity plans to maintain an investment-grade balance sheet and Flowserve's historical dividend levels. This article first appeared on GuruFocus.
