Is Flowserve Corp A Buy?

Flowserve Corp. (FLS), a Zacks Rank # 1 (Strong Buy), reveals growth in many areas, such as its ROE of 24% that exceeds the industry average of 17%. The company is also rewarding shareholders with income. The most recently declared quarterly dividend of 25 cents per share translates into a dividend yield of 0.8%, which is ahead of the industry averages since most of the companies within Flowserve’s industry group pay no income.

Company Description

With more than 14,000 employees in more than 56 countries, Flowserve supplies pumps, valves, seals automation and services to the power, oil, gas, chemical and other industries.

Income

The company is rewarding shareholders with income. The most recently declared quarterly dividend of 25 cents per share translates into a dividend yield of 0.8%, which is ahead of the industry averages since most of the companies within Flowserve’s industry group pay no income. Flowserve noted that the dividend is payable on July 9, 2008, to shareholders of record as of the close of business on June 25, 2008.

Growth

The company reported record first quarter results, including earnings per share, sales and bookings. The earnings per share result of $1.53 more than doubled the previous year’s 59 cents and topped the consensus estimate by 61%.

Flowserve’s return on equity (ROE) of 24% is ahead of the industry average of 17%. The company’s net margin of 7.8% also tops the industry average of 6.5%.

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