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Flexible Solutions International Is Growing But Overpriced For Its Risk

Summary

  • FSI is a manufacturer of thermal polyaspartate (TPA) products for the O&G, row crop and detergent industries.
  • In the last two years, the company has seen an increase in revenue which we believe has been generated by increased investment by commodity companies.
  • FSI's management has proven that it can control costs both under stagnant and increasing revenue conditions.
  • However, because ultimately FSI's revenues depend on commodities markets, it is a risky stock.
  • Under this condition, and trading at a 15x P/E for record profits, we believe the stock is a little bit overpriced.
Estructura Molecular

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Flexible Solutions International (NYSE:FSI) is an American producer of TPA products. The company has a profitable segment that delivers TPA chemicals to several industries, mainly oil & gas, agriculture and detergents.

Because two of the markets for TPA products are

This article was written by

I specialize in global micro, small and medium size companies that trade in the US using a Due Diligence approach, scrapping for as much information as possible about the company, and making qualitative judgments. I speak five languages (Spanish, English, Chinese, Italian, Portuguese). I also create written content used in various formats including blogs, emails, white papers, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. Working with teams that include senior editors, investment strategists, marketing managers, data analysts, and executives, I contribute ideas to help make content relevant, accessible, and measurable.Homo sum, humani nihil a me alienum puto Disclaimer: All of the author's articles are written on an "as is" basis and without warranty. They represent the author's opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions. The author disclaims all liability for any actions taken based on the information contained in any articles published.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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