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Flexible Solutions International (FSI)
:FSI
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Flexible Solutions International
(NYSE MKT:FSI)
63Neutral
Flexible Solutions International (FSI) vs. S&P 500 (SPY)
Market Cap
$62.90M
Dividend YieldN/A
Average Volume (3M)39.99K
Price to Earnings (P/E)15.2
Beta (1Y)1.95
Revenue Growth-6.36%
EPS Growth12.45%
CountryUS
Employees46
SectorBasic Materials
Sector Strength59
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.33
Shares Outstanding12,455,532
10 Day Avg. Volume22,198
30 Day Avg. Volume39,990
Financial Highlights & Ratios
PEG Ratio1.22
Price to Book (P/B)N/A
Price to Sales (P/S)1.69
Price to Cash Flow (P/CF)7.40
P/FCF Ratio16.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside82.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Flexible Solutions International Business Overview & Revenue Model
Company DescriptionFlexible Solutions International, Inc. (FSI) is a company specializing in the development and marketing of biodegradable polymers used in oil extraction, detergent ingredients, water treatment, and agricultural nutrient enhancement. The company operates primarily in the environmental technology sector with a focus on providing innovative solutions that reduce environmental impact while enhancing efficiency in various industrial processes.
How the Company Makes MoneyFSI makes money through the sale of its proprietary biodegradable polymer products. These products are designed to improve efficiency and reduce environmental impact in industries such as oil extraction, agriculture, and water treatment. Key revenue streams for FSI include sales to industrial customers and partnerships with companies that integrate FSI's polymers into their own products. The company's earnings are bolstered by its ability to provide cost-effective, sustainable solutions that meet increasing regulatory and consumer demands for environmentally friendly practices.
Flexible Solutions International Financial Statement Overview
Summary
FSI demonstrates solid financial health with robust profitability and efficient operations supported by strong revenue growth. The company's balance sheet is stable with low leverage, while cash flow generation is improving, albeit with some volatility. Continued focus on equity growth and strategic capital allocation could enhance financial flexibility and support future expansion.Income Statement
FSI's income statement shows strong profitability with a consistent increase in revenue and net income over recent periods. The gross profit margin for TTM (Trailing-Twelve-Months) is 26.26%, and the net profit margin is 12.21%, indicating efficient cost management. The revenue growth rate from the previous year is 14.81%, showcasing a positive growth trend. EBIT and EBITDA margins of 12.71% and 18.28% respectively further highlight operational efficiency, although there has been a decline compared to past periods.75
Positive
Balance Sheet
FSI maintains a stable balance sheet with a debt-to-equity ratio of 0.25, indicating low leverage and a conservative capital structure. The return on equity (ROE) for the TTM is 14.54%, reflecting good profitability. The equity ratio stands at 63.89%, highlighting a solid equity base relative to total assets. However, the overall growth in stockholders' equity has been moderate, which could limit future expansion.70
Positive
Cash Flow
FSI's cash flow statement reveals a mixed picture. The operating cash flow to net income ratio is 1.14, indicating that operating cash flows are sufficient to cover net income. Free cash flow has grown by 29.77% compared to the previous year, reflecting improved cash generation after capital expenditures. However, fluctuations in investing and financing cash flows may suggest some volatility in capital allocation decisions.68
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 44.00M | 38.32M | 45.84M | 34.42M | 31.41M | 27.44M | Gross Profit |
| 11.56M | 10.34M | 13.87M | 11.40M | 9.77M | 8.62M | EBIT |
| 5.59M | 3.00M | 7.05M | 5.48M | 4.12M | 2.84M | EBITDA |
| 8.04M | 5.86M | 9.48M | 8.08M | 6.64M | 3.36M | Net Income Common Stockholders |
| 5.37M | 2.78M | 7.02M | 3.45M | 2.98M | 1.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.64M | 7.71M | 6.82M | 6.74M | 4.47M | 3.63M | Total Assets |
| 14.70M | 55.47M | 51.59M | 39.55M | 35.09M | 32.38M | Total Debt |
| 2.36M | 10.04M | 9.14M | 4.88M | 6.45M | 8.06M | Net Debt |
| 728.40K | 5.02M | 3.02M | -825.54K | 2.97M | 4.42M | Total Liabilities |
| 2.95M | 17.20M | 16.35M | 11.85M | 11.32M | 11.92M | Stockholders Equity |
| 11.75M | 35.20M | 32.63M | 25.10M | 21.21M | 17.91M |
| Cash Flow | Free Cash Flow | ||||
| 2.60M | 2.00M | -504.40K | 3.75M | 4.63M | 538.63K | Operating Cash Flow |
| 6.14M | 6.99M | 1.48M | 4.54M | 5.71M | 2.37M | Investing Cash Flow |
| -2.67M | -5.67M | -2.22M | -659.54K | -3.22M | -2.67M | Financing Cash Flow |
| -342.45K | -437.95K | 848.33K | -1.71M | -2.70M | -3.09M |
Flexible Solutions International Technical Analysis
Neutral
4.94
Price Trends
5.84
Negative
4.85
Positive
3.81
Positive
Market Momentum
-0.16
Positive
39.43
Neutral
18.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSI, the sentiment is Neutral. The current price of 4.94 is below the 20-day moving average (MA) of 5.29, below the 50-day MA of 5.84, and above the 200-day MA of 3.81, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 18.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSI.
Flexible Solutions International Risk Analysis
Flexible Solutions International disclosed 15 risk factors in its most recent earnings report. Flexible Solutions International reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flexible Solutions International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $62.90M | 15.17 | 11.77% | ― | -6.36% | 12.45% | |
61 Neutral | $603.61M | 13.93 | 5.83% | 2.83% | -1.05% | -16.57% | |
59 Neutral | $12.71B | 21.36 | 5.76% | 2.07% | -3.24% | 24.29% | |
58 Neutral | $24.18B | 21.95 | 6.14% | 8.15% | -3.72% | 91.57% | |
50 Neutral | $6.39B | 6.84 | -24.69% | 3.72% | -6.03% | -177.29% | |
50 Neutral | $2.75B | ― | -5.22% | 6.32% | -1.23% | -277.52% | |
47 Neutral | $2.65B | -3.07 | -22.25% | 3.27% | 3.70% | -29.53% |
* Basic Materials Sector Average
Performance Comparison
FSI
Flexible Solutions International
5.05
3.24
179.01%
CE
Celanese
56.77
-111.70
-66.30%
HUN
Huntsman
15.79
-8.93
-36.12%
WLK
Westlake Chemical
100.03
-51.85
-34.14%
ASIX
AdvanSix
22.65
-3.92
-14.75%
DOW
Dow Inc
34.92
-19.97
-36.38%
Flexible Solutions International Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -2.18% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with increased sales and profit, successful asset sales, and promising growth potential in the food and nutrition market. However, challenges with tariffs, a one-time accounting loss, and pressures in the agricultural market were noted.Highlights
Increased Sales and Profit
Sales for the third quarter increased by 7% to $9.31 million compared with $8.72 million in Q3 2023. The company showed a profit of $612,000 or $0.05 a share compared to a loss of $718,000 or $0.06 a share in Q3 2023.
Successful Florida LLC Sale
FSI sold its Florida LLC asset for a total of $6 million. The sale will result in a future gain once delayed payments begin in Q4 2025.
Positive Outlook for Food Division
The food division is expected to grow rapidly in the first half of 2025. The company is working on a pipeline of five products, each with seven-figure revenue potential.
Stable Oil, Gas, and Industrial Sales
Oil, gas, and industrial sales of TPA were stable in Q3 and are likely to continue through 2024 and the first half of 2025.
Potential in Food and Nutrition Market
FSI is targeting significant revenue growth by moving into the food and nutrition market. The market size is multiples of the company's current revenue.
Streamlined Operations
Operations were streamlined by closing the Naperville R&D facility, which resulted in cost savings and efficiency gains.
Lowlights
Tariff Challenges
Since 2019, tariffs on raw materials imported from China have negatively affected costs, cash flow, and profits. The company is struggling to recover over $1 million in entitled rebates.
One-time Accounting Loss
The sale of the Florida LLC resulted in a one-time accounting loss of $385,000, reducing earnings for the quarter to $0.05 from $0.07.
Agricultural Market Pressures
Agricultural products in the U.S. are facing challenges due to rising costs and low crop prices, affecting the rate of inflation.
Company Guidance
During the FSI Q3 2024 earnings call, CEO Daniel O'Brien provided guidance indicating substantial progress and anticipated growth for the company. The NanoChem division, accounting for approximately 70% of revenue, is thriving with products like TPA, SUN 27, and N Savr 30 contributing to agricultural efficiency and nitrogen conservation. Sales increased by 7% to $9.31 million compared to Q3 2023, and the company posted a profit of $612,000, or $0.05 per share, despite a one-time accounting loss from the sale of a Florida LLC. Furthermore, the Food division expects rapid growth in early 2025, supported by a pipeline of five products each with significant revenue potential. Operating cash flow for the first nine months of 2024 was $5.91 million, marking a significant increase from $3.28 million for the same period in 2023. The company plans to maintain its cash for future opportunities and continue its growth trajectory into 2025, with strategic investments and a focus on expanding into the food and nutrition markets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.