📊 FSI Key Takeaways
Is Flexible Solutions International Inc. (FSI) a Good Investment?
FSI exhibits severely deteriorating fundamentals with negative operating cash flow (-$1.8M), negative free cash flow (-$4.1M), and unprofitable operations unable to cover interest expenses. Revenue growth is essentially flat (0.7% YoY) while net income deteriorated 66.8% YoY, indicating an operationally failing business despite a structurally sound balance sheet that provides only temporary downside protection.
Flexible Solutions International shows solid fundamental stability, with healthy gross and operating margins, positive free cash flow generation, and a conservative balance sheet supported by strong liquidity and modest leverage. However, revenue is essentially flat and net income declined materially year over year, which suggests that while the business is financially sound, earnings quality and growth momentum are not strong enough to support a more aggressive rating based on fundamentals alone.
Flexible Solutions International Inc. Key Strengths (FSI)
- Healthy gross margin of 22.8% indicates core product/service economics have merit
- Strong liquidity position with current ratio of 2.56x and quick ratio of 1.62x
- Conservative balance sheet with low leverage (0.11x debt/equity) and $5.8M cash reserves
- Strong liquidity profile with a 2.96x current ratio and 2.11x quick ratio
- Low leverage and strong debt service capacity, with 0.18x debt-to-equity and 20.2x interest coverage
- Positive cash generation, including $6.76M operating cash flow and $3.45M free cash flow
FSI Stock Risks: Flexible Solutions International Inc. Investment Risks
- Negative free cash flow of -$4.1M annually with only $5.8M cash reserves indicates runway of ~1.4 years before depletion without operational improvement
- Unprofitable operations with negative interest coverage ratio (-0.5x) indicating inability to service debt from operational earnings
- Stagnant revenue growth (0.7% YoY) combined with rapidly deteriorating profitability (-66.8% net income decline) demonstrates accelerating operational failure
- Negative operating cash flow signals core business cannot generate cash, requiring asset liquidation or capital raises
- Zero insider buying activity in last 90 days indicates management lacks confidence in turnaround
- Revenue growth is stalled, with sales down 0.2% year over year
- Net income fell 25.9% year over year, indicating pressure below the operating line
- Returns on capital remain modest, with ROE of 3.2% and ROA of 2.1%
Key Metrics to Watch
- Operating cash flow trend - critical indicator of whether cash burn can be arrested
- Revenue growth acceleration - must exceed 5%+ sustained to justify continued capital deployment
- Path to operating profitability - timeline and credibility of management's plan to reach positive operating income
- Net income and net margin recovery
- Revenue growth and free cash flow consistency
Flexible Solutions International Inc. (FSI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.56x current ratio provides a solid financial cushion.
FSI Profit Margin, ROE & Profitability Analysis
FSI vs Materials Sector: How Flexible Solutions International Inc. Compares
How Flexible Solutions International Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Flexible Solutions International Inc. Stock Overvalued? FSI Valuation Analysis 2026
Based on fundamental analysis, Flexible Solutions International Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Flexible Solutions International Inc. Balance Sheet: FSI Debt, Cash & Liquidity
FSI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Flexible Solutions International Inc.'s revenue has grown significantly by 12% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.24 reflects profitable operations.
FSI Revenue Growth, EPS Growth & YoY Performance
FSI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.5M | -$241.4K | $-0.02 |
| Q3 2025 | $9.3M | -$503.4K | $-0.04 |
| Q2 2025 | $10.5M | $1.3M | $0.10 |
| Q1 2025 | $7.5M | -$277.7K | $-0.02 |
| Q3 2024 | $8.7M | $611.9K | $0.05 |
| Q2 2024 | $10.3M | $809.9K | $0.06 |
| Q1 2024 | $9.2M | $457.2K | $0.04 |
| Q3 2023 | $8.7M | -$718.2K | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Flexible Solutions International Inc. Dividends, Buybacks & Capital Allocation
FSI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Flexible Solutions International Inc. (CIK: 0001069394)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FSI
What is the AI rating for FSI?
Flexible Solutions International Inc. (FSI) has a Combined AI Grade of C from Claude (D) and ChatGPT (B) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FSI's key strengths?
Claude: Healthy gross margin of 22.8% indicates core product/service economics have merit. Strong liquidity position with current ratio of 2.56x and quick ratio of 1.62x. ChatGPT: Strong liquidity profile with a 2.96x current ratio and 2.11x quick ratio. Low leverage and strong debt service capacity, with 0.18x debt-to-equity and 20.2x interest coverage.
What are the risks of investing in FSI?
Claude: Negative free cash flow of -$4.1M annually with only $5.8M cash reserves indicates runway of ~1.4 years before depletion without operational improvement. Unprofitable operations with negative interest coverage ratio (-0.5x) indicating inability to service debt from operational earnings. ChatGPT: Revenue growth is stalled, with sales down 0.2% year over year. Net income fell 25.9% year over year, indicating pressure below the operating line.
What is FSI's revenue and growth?
Flexible Solutions International Inc. reported revenue of $8.3M.
Does FSI pay dividends?
Flexible Solutions International Inc. pays dividends, with $1.3M distributed to shareholders in the trailing twelve months.
Where can I find FSI SEC filings?
Official SEC filings for Flexible Solutions International Inc. (CIK: 0001069394) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FSI's EPS?
Flexible Solutions International Inc. has a diluted EPS of $-0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FSI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Flexible Solutions International Inc. has a C grade with 82% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FSI stock overvalued or undervalued?
Valuation metrics for FSI: ROE of -0.6% (sector avg: 14%), net margin of -2.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is FSI's AI grade for 2026?
Our dual AI analysis gives Flexible Solutions International Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FSI's free cash flow?
Flexible Solutions International Inc.'s operating cash flow is $-1.8M, with capital expenditures of $2.2M. FCF margin is -48.8%.
How does FSI compare to other Materials stocks?
Vs Materials sector averages: Net margin -2.9% (avg: 10%), ROE -0.6% (avg: 14%), current ratio 2.56 (avg: 1.6).