Fluor Story

FLR -- USA Stock

USD 20.74 0.29 1.42%

Macroaxis Story

As many millenniums are getting more into industrials space, we are going to sum up Fluor and Jacobs Engineering as potential short-horizon trade. We are going to discuss some of the competitive aspects of both Fluor and Jacobs.

Published over a month ago

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Is Fluor (NYSE:FLR) catching up with Jacobs (NYSE:J)?

By analyzing existing basic indicators between Fluor and Jacobs, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Jacobs with a short position in Fluor. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Fluor has an asset utilization ratio of 187.27 percent. This connotes that the company is making $1.87 for each dollar of assets. An increasing asset utilization means that Fluor is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Fluor or Jacobs is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Fluor dividends

A dividend is the distribution of a portion of Fluor earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Fluor dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Fluor one year expected dividend income is about $0.28 per share.

Fluor Dividend Yield is relatively stable at the moment as compared to the past year. Fluor reported last year Dividend Yield of 0.0448. As of 01/24/2021, Dividends per Basic Common Share is likely to grow to 0.87, while Payment of Dividends and Other Cash Distributions is likely to drop (114.7 M).

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-106.3 M	-114.7 M
Dividend Yield	0.0448	0.0484
Dividends per Basic Common Share	0.84	0.87

Investing in stocks that pay dividends, such as stock of Fluor, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Fluor must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Fluor. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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

Correlation Between Fluor and Jacobs Engineering

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Fluor together with similar or unrelated positions with a negative correlation. For example, you can also add Jacobs Engineering to your portfolio. If Jacobs Engineering is not perfectly correlated to Fluor it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Fluor for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between FLR and J for more information.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Fluor revenue. Based on the latest financial disclosure, Fluor reported 14.28 B of revenue. This is 308.16% higher than that of the Industrials sector and 154.23% higher than that of the Engineering & Construction industry. The revenue for all United States stocks is 51.35% lower than that of Fluor. As for Jacobs Engineering we see revenue of 13.57 B, which is 141.59% higher than that of the Engineering & Construction

	Fluor	14.28 Billion
	Sector	3.5 Billion
	Jacobs	13.57 Billion

14.3 B

Fluor

3.5 B

Sector

13.6 B

Jacobs

Another small fall for Fluor

The maximum drawdown is down to 21.48 as of today. As of the 10th of December, Fluor shows the Coefficient Of Variation of 385.63, mean deviation of 3.55, and Downside Deviation of 3.88. Fluor technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Fluor, which can be compared to its rivals. Please confirm Fluor information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if Fluor is priced favorably, providing market reflects its regular price of 18.24 per share. Given that Fluor has jensen alpha of 0.972, we urge you to verify Fluor's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

While many of the other players 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. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor quit any shares of Fluor at this time. The Fluor risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Fluor.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

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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