SPX FLOW, Inc. provides engineered flow components, process equipment, turn-key systems, and related aftermarket parts and services worldwide. It operates through three segments: Food and Beverage, Power and Energy, and Industrial. The company is based in Charlotte, North Carolina.
FLOW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for SPX FLOW Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that SPX FLOW Inc ranked in the 7th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for FLOW, they are:
The company's compound free cash flow growth rate over the past 5.48 years comes in at -0.22%; that's greater than merely 7.15% of US stocks we're applying DCF forecasting to.
SPX FLOW Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.86. This coverage rate is greater than that of merely 14.27% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, SPX FLOW Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ALGT, JOB, FLR, LNN, and SHIP can be thought of as valuation peers to FLOW, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
A carefully-cultivated skepticism can be an investor's best friend, and when a stock looks oddly mispriced, it's entirely reasonable to wonder why. This brings me to IMI plc (IMIAY) (IMI.LN). I can understand why investors are worried about a fluid/motion control company leveraged to oil/gas and power, but the discount...
Stephen Simpson, CFA on Seeking Alpha | September 23, 2020
SPX Corp. (SPXC) is an undercovered stock on this platform, and while many investors took note of the spin-off of SPX Flow (FLOW), which already took place in 2015 again, lack of coverage of the former parent company has been seen in recent years. What has happened with SPX Corp....
The Value Investor on Seeking Alpha | August 24, 2020
Shares of SPX FLOW (NYSE:FLOW) moved higher by 2.8% in pre-market trading after the company reported Q2 results.Quarterly Results Earnings per share fell 43.59% over the past year to $0.22, which beat the estimate of $0.07.Revenue of $308,100,000 decreased by 20.06% year over year, which beat the estimate of $290,030,000.Guidance SPX FLOW hasn't issued any earnings guidance for the time being.SPX FLOW hasn't issued any revenue guidance for the time being.Details Of The Call Date: Jul 29, 2020View more earnings on FLOWTime: 09:00 AMET Webcast URL: https://edge.media-server.com/mmc/p/c57zqe2aTechnicals 52-week high: $49.94Company's 52-week low was at $15.74Price action over last quarter: Up 42.86%Company Description SPX Flow offers engineering solutions in two segments: food/b...