- 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.
For further details see:
Flexible Solutions International Is Growing But Overpriced For Its Risk