Fluor Story

<div class='circular--portrait' style='background:#347AFC;color: #ffffff;font-size:3em;'>FLR</div>
FLR -- USA Stock  

USD 8.68  0.74  7.86%

While some baby boomers are getting worried about industrials space, it is reasonable to sum up Fluor. We will check why this entity may not get much respect from retail investors given the current market uncertainty. Is the entity valuation sustainable? Here I will cover a perspective on valuation of Fluor to give you a better outlook on taking a position in this stock.
Published over a month ago
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Will Fluor (NYSE:FLR) price increase in September 2020?
The entity has 1.96 B in debt with debt to equity (D/E) ratio of 1.16, which is OK given its current industry classification. The firm has a current ratio of 1.35, which is typical for the industry and considered as normal. Our trade advice tool can cross-verify current analyst consensus on Fluor and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Fluor using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Fluor based exclusively on its fundamental and basic technical indicators. By analyzing Fluor's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Fluor's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Fluor. We calculate exposure to Fluor's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Fluor's related companies.

Fluor Investment Alerts

Fluor investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Fluor performance across your portfolios.Please check all investment alerts for Fluor

Fluor Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Fluor value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Fluor competition to find correlations between indicators driving the intrinsic value of Fluor.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Fluor, but it might be worth checking our own buy vs. sell analysis

A Deeper Perspective

The modest gains experienced by current holders of Fluor could raise concerns from retail investors as the firm closed today at a share price of 10.06 on 3,760,871 in volume. The company management teams have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.35. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Fluor partners.
 2017 2018 2019 2020 (projected)
Consolidated Income264.47 M292.96 M263.66 M360.81 M
Direct Expenses18.9 B18.5 B21.27 B23.28 B

Margins Breakdown

Fluor profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Fluor itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Fluor profit margins.
Operating Margin3.66
EBITDA Margin0.0354
Gross Margin0.0358
Profit Margin0.014

Fluor Net Income Per Employee is decreasing over the last 8 years. The previous year's value of Fluor Net Income Per Employee was 4,974. Also, Fluor Revenue Per Employee is decreasing over the last 8 years. The previous year's value of Fluor Revenue Per Employee was 507,641.

Is Fluor slump permanent?

Latest Market Risk Adjusted Performance is up to -0.01. Price may slump again. Fluor exhibits very low volatility with skewness of -0.56 and kurtosis of 0.72. However, we advise investors to further study Fluor technical indicators to make sure all market info is available and is reliable.

Our Conclusion on Fluor

While few other entities in the engineering & construction industry are either recovering or due for a correction, Fluor may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 1st of August 2020, our analysis shows that Fluor hyperactively responds to market trends. The enterprise is undervalued and projects below average probability of bankruptcy for the next 2 years. Our current 30 days buy-or-sell advice on the enterprise is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Fluor. Please refer to our Terms of Use for any information regarding our disclosure principles.

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