Financial Analysis: Flexible Solutions International (FSI) & Its Competitors

Flexible Solutions International (NYSE:FSI) is one of 295 public companies in the “Chemicals” industry, but how does it weigh in compared to its rivals? We will compare Flexible Solutions International to related businesses based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, dividends and valuation.

Valuation & Earnings

This table compares Flexible Solutions International and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Flexible Solutions International	$35.58 million	$2.78 million	-25.71
Flexible Solutions International Competitors	$7.99 billion	$222.31 million	-3.70

Flexible Solutions International’s rivals have higher revenue and earnings than Flexible Solutions International. Flexible Solutions International is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Flexible Solutions International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flexible Solutions International	10.80%	10.61%	7.32%
Flexible Solutions International Competitors	-61.06%	1.32%	-1.40%

Volatility & Risk

Flexible Solutions International has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Flexible Solutions International’s rivals have a beta of 1.26, suggesting that their average stock price is 26% more volatile than the S&P 500.

Dividends

Flexible Solutions International pays an annual dividend of $0.15 per share and has a dividend yield of 2.4%. Flexible Solutions International pays out -62.5% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 108.0% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Flexible Solutions International and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flexible Solutions International	0	1	0	1	3.00
Flexible Solutions International Competitors	3239	12180	14102	515	2.40

As a group, “Chemicals” companies have a potential upside of 6.27%. Given Flexible Solutions International’s rivals higher probable upside, analysts clearly believe Flexible Solutions International has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

54.3% of Flexible Solutions International shares are held by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are held by institutional investors. 35.0% of Flexible Solutions International shares are held by company insiders. Comparatively, 14.1% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Flexible Solutions International beats its rivals on 10 of the 15 factors compared.

Flexible Solutions International Company Profile

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water in Canada, the United States, and internationally. The company operates in two segments, Energy and Water Conservation Products, and Biodegradable Polymers. The company offers thermal polyaspartates (TPAs) for oilfields to reduce scale and corrosion in various water systems; and for the agricultural industry to reduce fertilizer crystallization before, during, and after application, as well as to prevent crystal formation between fertilizer and minerals present in the soil. It also provides TPAs for irrigation to prevent early plugging of drip irrigation ports, reduce maintenance costs, and lengthen the life of equipment; TPAs for cleaning products to prevents the re-deposition of dirt onto the surfaces; and TPAs as additives for household laundry detergents, consumer care products, and pesticides. In addition, the company offers nitrogen conservation products for agriculture that slow down nitrogen loss from fields. Further, it provides HEATSAVR, a chemical product for use in swimming pools and spas that forms a thin and transparent layer on the water's surface; and WATERSAVR to reduce water evaporation in reservoirs, potable water storage tanks, livestock watering ponds, aqueducts, canals, and irrigation ditches, as well as for lawn and turf care, and potted and bedding plants. The company was incorporated in 1991 and is headquartered in Taber, Canada.