How Flowserve's (FLS) Digital Integration and Low Carbon Focus May Shift Its Investment Story

Flowserve Corporation +0.32%

Flowserve Corporation

FLS

71.33

+0.32%

  • Flowserve recently presented its low carbon business solutions and digital integration capabilities at the Gastech Exhibition & Conference 2025 in Singapore, with Rakhi Oli, Global Strategic Business Leader – Low Carbon Business Solutions, speaking on the company's initiatives.
  • The conference showcased Flowserve's integration of its RedRaven digital monitoring platform into Honeywell's Forge system, highlighting a potential expansion in recurring digital service revenues.
  • We'll now explore how Flowserve's enhanced digital offerings and sustainability focus could reshape its investment narrative.

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Flowserve Investment Narrative Recap

To be a shareholder in Flowserve, you need to believe that its digital transformation and low-carbon pivot will help deliver stable growth, recurring revenues, and margin expansion despite ongoing volatility in project approvals and sector competition. The recent Gastech Conference news highlights Flowserve's efforts to boost digital services, but its impact on the short-term catalyst, higher-margin digital aftermarket growth, is mostly supportive, while the primary risk of project approval delays remains largely unchanged.

Of Flowserve’s recent announcements, the integration of its RedRaven monitoring platform with Honeywell Forge stands out for investors focused on recurring digital revenue. This move connects well with the company’s main catalyst: the expansion of value-added digital solutions, a key factor in supporting earnings stability and higher margins as traditional engineered orders face increased pricing pressure.

In contrast, investors should be aware that even as Flowserve’s digital expansion gains traction, project approvals in core end-markets may be subject to…

Flowserve's outlook anticipates $5.3 billion in revenue and $620.7 million in earnings by 2028. This scenario requires a 4.4% annual revenue growth rate and a $329.1 million increase in earnings from the current level of $291.6 million.

Uncover how Flowserve's forecasts yield a $66.50 fair value, a 18% upside to its current price.

Exploring Other Perspectives

FLS Community Fair Values as at Sep 2025
FLS Community Fair Values as at Sep 2025

Nine fair value estimates from the Simply Wall St Community range widely, from US$25 to US$46,255 per share. While many see opportunity in Flowserve’s digital revenue catalyst, diverging views highlight how market participants weigh execution risks and industry headwinds, explore these perspectives to inform your outlook.

Explore 9 other fair value estimates on Flowserve - why the stock might be a potential multi-bagger!

Build Your Own Flowserve Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • 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.
  • Our free Flowserve research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Flowserve's overall financial health at a glance.

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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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