Fluor Story

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

USD 8.48  0.07  0.82%

Fluor is scheduled to announce its earnings tomorrow. Fluor Market Capitalization is relatively stable at the moment as compared to the past year. Fluor reported last year Market Capitalization of 4.08 Billion. As of 08/15/2020, Tangible Asset Value is likely to grow to about 9.8 B, while Invested Capital is likely to drop slightly above 4.9 B. While some of us are becoming more enthusiastic about industrials space, let's sum up Fluor in greater detail to make a better estimate of its debt utilization. We will evaluate why recent Fluor price moves suggest a bounce in September.
Published over a month ago
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How much will Fluor owe in September?
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. On a scale of 0 to 100, Fluor holds a performance score of 3. The firm shows a Beta (market volatility) of 0.1129, which means not very significant fluctuations relative to the market. Let's try to break down what Fluor's beta means in this case. As returns on the market increase, Fluor returns are expected to increase less than the market. However, during the bear market, the loss on holding Fluor will be expected to be smaller as well. Although it is vital to follow Fluor historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Fluor technical indicators, you can presently evaluate if the expected return of 0.26% will be sustainable into the future. Please utilizes Fluor potential upside, as well as the relationship between the kurtosis and day typical price to make a quick decision on whether Fluor price patterns will revert.
Fluor financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Fluor, including all of Fluor's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Fluor assets, the company is considered highly leveraged. Understanding the composition and structure of overall Fluor debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Fluor Total Liabilities

Fluor liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Fluor has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Fluor balance sheet include debt obligations and money owed to different Fluor vendors, workers, and loan providers. Below is the chart of Fluor short long-term liabilities accounts currently reported on its balance sheet.
You can use Fluor financial leverage analysis tool to get a better grip on understanding its financial position

How important is Fluor's Liquidity

Fluor financial leverage refers to using borrowed capital as a funding source to finance Fluor ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Fluor financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Fluor's total debt and its cash.

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

Fluor reported the last year's revenue of 18.52 B. Reported Net Loss for the year was (1.27 B) with profit before taxes, overhead, and interest of 669.92 M.

Liabilities Breakdown

3.2 B
Current Liabilities
2.2 B
Long-Term Liabilities
Total Liabilities6.35 Billion
Current Liabilities3.16 Billion
Long-Term Liabilities2.17 Billion

Our Fluor analysis connotes possible reversion in September

The mean deviation is down to 3.99 as of today. Fluor exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Fluor individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Fluor future systematic risk.

Our Bottom Line On Fluor

While many of the other players in the engineering & construction industry are either recovering or due for a correction, Fluor may not be as strong as the others in terms of longer-term growth potentials. While some before the next press release oriented retail investors may not share our view, we believe it may not be a good time to buy new shares of Fluor.

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 Raphi Shpitalnik do not own shares of Fluor. Please refer to our Terms of Use for any information regarding our disclosure principles.

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