Bedrijfsoverzicht
Flexible Solutions International, Inc. is a specialty manufacturer dedicated to developing, producing, and marketing chemicals specifically engineered to retard water evaporation across Canada, the United States, and international markets. The enterprise operates within the Basic Materials sector, focusing on the Specialty Chemicals industry, which implies a niche position serving industrial and commercial clients with high-value additive solutions. The company's operational scale is defined by a market capitalization of $68.91M, a trailing twelve-month revenue stream of $38.56M, and an employee base of 45 individuals. These valuation and revenue figures collectively indicate that FSI functions as a small-cap entity with a revenue profile typical of specialized B2B manufacturers rather than broad consumer-facing corporations, positioning it as a focused player in the global water conservation and energy efficiency value chain.
Financiële gezondheid
The company reported revenue of $38.56M and net income of $1.93M over the trailing twelve months, while generating EBITDA of $6.51M. The significant gap between the $38.56M revenue figure and the $1.93M net income reveals a cost structure where non-operating expenses, taxes, or interest obligations consume approximately 95% of gross profit before reaching the bottom line. The free cash flow stands at -$4,515,624, indicating that current cash burn exceeds operational cash generation, which suggests a need for capital investment or working capital adjustments that impacts immediate financial flexibility. Profitability analysis shows a gross margin of 32.5%, an operating margin of 3.2%, and a profit margin of 5.0%, where the low operating margin relative to the gross margin highlights substantial overhead costs or administrative expenses diluting the core manufacturing profitability. Liquidity assessment shows cash reserves of $9.87M against total debt of $7.64M, with a debt-to-equity ratio of 17.76, suggesting a balance sheet that appears conservative in terms of absolute dollar amounts but carries elevated leverage relative to equity. The current ratio of 2.96 indicates a robust short-term liquidity position, as current assets significantly exceed current liabilities, providing ample buffer for meeting obligations within the next year. Return metrics reveal a return on equity of 8.0% and a return on assets of 4.9%, which demonstrates that management generates modest returns on the capital deployed, reflecting the capital-intensive or low-margin nature of the specialty chemicals business.
Waarderingsbeoordeling
Valuation multiples show a trailing P/E ratio of 38.64 compared to a forward P/E of 16.91, implying that the market expects a substantial increase in earnings per share in the coming years to justify the high current multiple. The price-to-book ratio is 1.76, indicating that the stock trades at a premium of roughly 76% above its book value, which may reflect intangible assets, brand equity, or growth expectations rather than tangible asset backing. Alternative valuation metrics include a price-to-sales ratio of 1.79 and an EV/EBITDA of 10.82, suggesting that the market values the company based on both revenue generation and earnings power, though the forward P/E compression indicates anticipated earnings acceleration. Price action within the last year shows a 52-week high of $11.48 and a 52-week low of $3.53, with the current price trading at approximately 87% below the 52-week high, suggesting significant volatility or a correction from recent peaks. The beta of 1.61 indicates that the stock price is expected to be 61% more volatile than the broader market, highlighting higher systematic risk for investors sensitive to market swings.
Growth & Income
Revenue growth over the past year is recorded at 13.3%, while earnings growth is listed as N/A, meaning that while top-line sales are expanding, the bottom-line trajectory is either negative, negligible, or not yet fully realized in the financial statements. The absence of reported earnings growth relative to the positive revenue expansion suggests that costs are rising faster than sales or that the company is still optimizing its cost base to convert revenue into profit. As a non-dividend payer with a dividend yield of N/A and a payout ratio of 0.0%, the company currently retains all of its earnings, reinvesting capital back into operations rather than distributing income to shareholders. This income profile reflects a growth-oriented strategy typical of small-cap specialty manufacturers that prioritize expansion and market share acquisition over shareholder distributions.