Flexible Solutions International Inc (NYSE: FSI)

Sector: Basic Materials Industry: Specialty Chemicals CIK: 0001069394
Market Cap 83.65 Mn
P/B 2.15
P/E 43.40
P/S 2.17
ROIC (Qtr) 6.93
Div Yield % 0.00
Rev 1y % (Qtr) 13.33
Total Debt (Qtr) 7.64 Mn
Debt/Equity (Qtr) 0.20

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 8.48M provide 2.43x coverage of short-term debt 3.49M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 53.82M provides 7.05x coverage of total debt 7.64M, indicating robust asset backing and low credit risk.
  • Tangible assets of 53.82M provide exceptional 727.02x coverage of deferred revenue 74026, showing strong service capability backing.
  • Operating cash flow of 3.05M provides strong 41.22x coverage of deferred revenue 74026, indicating service delivery capability.
  • Long-term investments of 4.57M provide solid 1.10x coverage of long-term debt 4.15M, indicating strategic financial planning.

Bear case

  • Operating cash flow of 3.05M barely covers its investment activities of (2.37M), with a coverage ratio of -1.29, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (2.37M) provide weak support for R&D spending of 642723, which is -3.68x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 3.05M provides thin coverage of dividend payments of (1.27M) with a -2.39 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (2.35M) provides weak coverage of capital expenditures of 5.40M, with a -0.43 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 3.20M show weak coverage of depreciation charges of 1.96M, with a 1.63 ratio indicating high capital intensity and potential reinvestment needs.

Concentration Risk Benchmark Breakdown of Revenue (2024)

Concentration Risk Benchmark Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Chemicals
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LIN Linde Plc 218.63 Bn 38.41 6.61 25.93 Bn
2 SHW Sherwin Williams Co 110.34 Bn 170.54 11.54 13.58 Bn
3 ECL Ecolab Inc. 80.35 Bn 80.18 5.93 8.67 Bn
4 APD Air Products & Chemicals, Inc. 56.37 Bn 48.29 5.86 18.31 Bn
5 PPG Ppg Industries Inc 34.00 Bn 31.05 2.58 7.91 Bn
6 LYB LyondellBasell Industries N.V. 17.46 Bn 5.03 0.49 13.22 Bn
7 DD DuPont de Nemours, Inc. 16.63 Bn 3.65 0.32 8.90 Bn
8 ALB Albemarle Corp 14.44 Bn 48.94 6.36 3.63 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.43 1.52
EV to Cash from Ops. EV/CFO 27.29 12.52
EV to Debt EV to Debt 10.90 13.65
EV to EBIT EV/EBIT 26.05 21.45
EV to EBITDA EV/EBITDA 13.00 14.82
EV to Free Cash Flow [EV/FCF] EV/FCF -35.48 29.24
EV to Market Cap EV to Market Cap 1.00 3.84
EV to Revenue EV/Rev 2.16 89.11
Price to Book Value [P/B] P/B 2.15 5.48
Price to Earnings [P/E] P/E 43.40 16.02
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.51 -5.31
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -75.74
Dividend per Basic Share Div per Share (Qtr) 0.00 1.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.50
Interest Coverage Int. cover (Qtr) 4.82 -8.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -52.72 -1.67
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -20.13 72.99
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -3.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -48.55 -31.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -17.83 51.49
EBIT Growth (1y) % EBIT 1y % (Qtr) -35.23 0.57
EBT Growth (1y) % EBT 1y % (Qtr) -41.65 -80.35
EPS Growth (1y) % EPS 1y % (Qtr) -54.55 -90.82
FCF Growth (1y) % FCF 1y % (Qtr) -1,074.33 -50.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -6.55 219.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.66 0.70
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.41
Cash Ratio Cash Ratio (Qtr) 0.76 1.28
Current Ratio Curr Ratio (Qtr) 2.96 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.20 0.92
Interest Cover Ratio Int Coverage (Qtr) 4.82 -8.92
Times Interest Earned Times Interest Earned (Qtr) 4.82 -8.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.40 -333.97
EBIT Margin % EBIT Margin % (Qtr) 8.29 -374.34
EBT Margin % EBT Margin % (Qtr) 6.57 -379.75
Gross Margin % Gross Margin % (Qtr) 32.50 29.26
Net Profit Margin % Net Margin % (Qtr) 5.00 -380.67