| Hello everyone,
Let’s look at the average PE for this sector.
The Chemicals industry is up 1.4% in the last week, with Linde up 1.8%. In contrast, the industry has lost 4.9% in the last 12 months. Looking forward, earnings are forecast to grow by 12% annually.
Current Industry PE
- Investors are optimistic on the American Chemicals industry, indicating that they anticipate long term growth rates will be higher than they have historically.
- The industry is trading at a PE ratio of 19.0x which is lower than its 3-year average PE of 35.2x.
- The 3-year average PS ratio of 2.1x is higher than the industry’s current PS ratio of 1.8x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have grown 47% per year over the last three years.
- Revenues for these companies have grown 11% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Now, let’s compare the FSI metrics…
Market Cap 39.72M
Shares in the Float 7.97M
Held by Insiders 46.49%
Held by Institutions 10.79%
P/E 5.78
Revenue (Trailing 12 months) $45.84M
Quarterly Revenue Growth (YoY) 35%
EBITDA 8.82M
Total Cash (Most recent quarter) $6.82M
Quarterly revenue is growing at 35% YoY and EPS grew over 104% from 2021 to 2022!
Analyst Consensus Target is $6/share representing 100% gains from the current PPS.
The Team
Original report below
Hello everyone and welcome to all our new members,
This is one of the most exciting growth stories we have reported on all year and the sector tends to perform well in any market.
Flexible Solutions International, Inc. (NYSE American: FSI)
About Flexible Solutions International
Flexible Solutions International, Inc. (www.flexiblesolutions.com), is an environmental technology company. The Company’s NanoChem Solutions Inc. subsidiary specializes in biodegradable, water-soluble products utilizing thermal polyaspartate (TPA) biopolymers. TPA beta-proteins are manufactured from the common biological amino acid, L-aspartic and have wide usage including scale inhibitors, detergent ingredients, water treatment and crop enhancement. Along with TPA, this division started producing other crop enhancement products as well. The other divisions manufacture energy and water conservation products for drinking water, agriculture, industrial markets and swimming pools throughout the world. FSI is the developer and manufacturer of WaterSavr, the world’s first commercially viable water evaporation retardant. WaterSavr reduces evaporation by up to 30% on reservoirs, lakes, aqueducts, irrigation canals, ponds and slow moving rivers. Heatsavr, a “liquid blanket” evaporation retardant for the commercial swimming pool and spa markets, reduces energy costs by 15% to 40% and can result in reduced indoor pool humidity.
Zacks Sees FSI As Aggressive In Exploring For New Opportunities
Flexible Solutions International (NYSE: FSI) offers investors who are willing to take a little more risk within the agricultural chemicals sector a special opportunity. FSI is a developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients, and water treatment, as well as crop nutrient availability chemistry. Analyst Zacks sees it as a Company, particularly its NanoChem Division, as aggressive in exploring for new opportunities in applications such as detergent, water treatment, oil field extraction and agriculture to grow sales and net income.
FSI’s net profit was $3.4 million in 2021,16% higher than its $2.9 million in 2020. FSI stock is trading at a PE ratio (TTM) of 9.84.
FSI’s volume expanded to $45.7 million in 2022 from $34.4 million in 2021, a 33% jump. In 2020, FSI’s volume was $31.4 million, 10% higher than the prior year.
“Considering this, as well as the strength of its earnings outlook, FSI feels like a great value stock right now,” concludes analyst firm Zacks. Investor Place lists FSI as one of its ‘hyper-growth stocks with 10x potential in 2023.” A Seeking Alpha analyst considers FSI stock a ‘buy,’ based on an analysis of multiples and growth over the past five years.
Complete financial results for 2022 will be available on March 31, 2023 concurrent with SEC filings. A conference call will be held on the next business day, Monday, April 3, 2023.
One of FSI’s goals is to feed the world’s growing population more efficiently. It is doing so profitably and reporting annual sales growth. It is a environmental technology company.
The NanoChem Solutions, Inc. Division of FSI, with proprietary agricultural products EX-10, Sun Savr 30 and Sun 27, are specialty chemicals that successfully commercialize technology. They mitigate nitrogen and phosphorus runoff and evaporation. This means farmers can deliver more efficient production and improved crop yields. FULL ARTICLE
Source: Zacks
Highlights and Recent News
Just reported blowout Q4 & 2022 year end numbers and announced a special dividend for shareholders of record as of April 28th 2023.
Current PPS $3.12
Shares Outstanding 12.44M
Shares in the Float 7.97M
Held by Insiders 46.49%
Held by Institutions 10.79%
P/E 5.78
Revenue (Trailing 12 months) $45.84M
Quarterly Revenue Growth (YoY) 35%
EBITDA 8.82M
Total Cash (Most recent quarter) $6.82M
2018-2022 EPS and Revenue Growth
Source: Finviz
Special Dividend
April 14th, 2023 Flexible Solutions International (NYSE: FSI) declared a special dividend of $0.05 per share, for an annual yield of 1.5%. The dividend will be payable on May 16, 2023, to stockholders of record on April 28, 2023, with an ex-dividend date of April 27, 2023. FULL ARTICLE
March 31, 2023 – FSI Announces Very Strong Full Year, 2022 Results
Mr. Daniel B. O’Brien, CEO, states, “2022 was an excellent year for both growth and profits. It is a testament to the quality of our employees that we were able to execute so well.” Mr. O’Brien adds, “It was not an easy year. We had to contend with high input prices, inflation and shipping costs – all of which affected our margins. We expect 2023 to bring its own problems for us to surmount. Our estimation for 2023 is continued growth in revenue, cash flow and profit but we are not yet able to predict which quarters will be the most positive.”
Sales for the Full Year were $45,840,469, up approximately 33% when compared to sales of $34,416,335 in the corresponding period a year ago.
Full Year, 2022 net income was $7,021,604, or $0.57 per share, compared to a net income of $3,449,162, or $0.28 per share, in Full Year, 2021.
The higher earnings reported for 2022 were in part due to a significant income tax carry forward rebate.
Basic weighted average shares used in computing earnings per share amounts were 12,379,316 and 12,316,254 for full year, 2022 and full year, 2021 respectively.
2022 Non-GAAP operating cash flow: The Company shows 12 months operating cash flow of $8,442,735, or $0.68 per share. This compares with operating cash flow of $5,645,095, or $0.46 per share, in the corresponding 12 months of 2021 (see the table that follows for details of these calculations).
The NanoChem division and ENP subsidiary continue to be the dominant sources of revenue and cash flow for the Company. New opportunities continue to unfold in detergent, water treatment, oil field extraction, turf, ornamental and agricultural use to further increase sales in these divisions. FULL ARTICLE
The stock has been trading above it’s 20, 50 and 200 day moving averages with the 20 day recently crossing above the 50.
The only negative we could find on FSI is the recent Q1 revenue announcement (Q1 is Due Out May 15th, 2023) mentions an 8% YoY decrease due to late seasonal ordering which should remedy in the Q2 numbers. FULL ARTICLE
We will be back with more on FSI soon,
The Team |
