FLR Fluor stock Story

FLR -  USA Stock  

USD 17.00  0.22  1.28%

As many investors are getting excited about industrials space, it is fair to sum up Fluor. We will evaluate if Fluor shares are reasonably priced going into December. Is the entity valuation justified? I am going to cover the stock perspective on valuation to give you a better outlook on taking a position in it.
Published over six months ago
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Is Fluor growth trend slowing down?
Fluor has 1.7 B in debt with debt to equity (D/E) ratio of 1.4, which is OK given its current industry classification. 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 Corp 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 Corp based exclusively on its fundamental and basic technical indicators. By analyzing Fluor Corp'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 Corp'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 Corp. We calculate exposure to Fluor Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Fluor Corp's related companies.

Fluor Corp Investment Alerts

FLR 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 Corp performance across your portfolios.Please check all investment alerts for FLR Fluor

Fluor Corp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare FLR 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 Corp competition to find correlations between indicators driving the intrinsic value of FLR Fluor.

How FLR Fluor utilizes its cash?

To perform a cash flow analysis of Fluor Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Fluor Corp is receiving and how much cash it distributes out in a given period. The Fluor Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Fluor Corp Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Fluor Corp reported last year Net Cash Flow from Operations of 185.88 Million

An Additional Perspective On Fluor Corp

The modest gains experienced by current holders of Fluor could raise concerns from retail investors as the firm it trading at a share price of 11.35 on slow start in volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.43. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Fluor partners.

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 Margin(8.99)
EBITDA Margin(0.0595)
Gross Margin(0.0308)
Profit Margin(0.11)

Fluor Average Assets is relatively stable at the moment. Fluor Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. The previous year's value of Fluor Earnings Before Interest Taxes and Depreciation Amortization USD was -858,612,711. Additionally, Fluor Earnings Before Interest Taxes and Depreciation Amortization EBITDA is relatively stable at the moment. Fluor Average Assets is increasing over the last 8 years. The previous year's value of Fluor Average Assets was 9,250,480,697. Fluor Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. Additionally, Fluor Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years.

Will Fluor latest spike continue?

Latest value at risk is at -7.65. 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 Conclusion on Fluor

While other companies within the engineering & construction industry are still a little expensive, even after the recent corrections, Fluor may offer a potential longer-term growth to retail investors. To summarize, as of the 1st of November 2020, our analysis shows that Fluor actively responds to the market. The enterprise is overvalued and projects average odds of distress for the next 2 years. Our primary 30 days Buy-Hold-Sell recommendation on the enterprise is Sell.

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 Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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