Fluor Corp (NYSE: FLR)

Sector: Industrials Industry: Engineering & Construction CIK: 0001124198
Market Cap 7.48 Bn
P/B 1.44
P/E 2.21
P/S 0.48
ROIC (Qtr) -2.79
Div Yield % 0.00
Rev 1y % (Qtr) -17.73
Total Debt (Qtr) 1.07 Bn
Debt/Equity (Qtr) 0.21

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 11.47B provides 10.72x coverage of total debt 1.07B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 306M provides strong 10.55x coverage of stock compensation 29M, indicating sustainable incentive practices.
  • Strong operating cash flow of 306M provides 1.64x coverage of SG&A expenses 187M, showing efficient operational cost management.
  • Robust free cash flow of 231M exceeds capital expenditure of 75M by 3.08x, indicating strong organic growth funding capability.
  • Long-term investments of 4.82B provide solid 4.51x coverage of long-term debt 1.07B, indicating strategic financial planning.

Bear case

  • Operating cash flow of 306M provides minimal 0.31x coverage of tax expenses of 997M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Long-term investments of 4.82B represent a high 10.07x of fixed assets 479M, indicating potential overexposure to financial assets versus operational capabilities.
  • Free cash flow of 231M represents just -4.62x of debt issuance (50M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 4.64B provide limited buffer against comprehensive income items of (283M), which is -16.40x, indicating elevated exposure to market risks.
  • Operating cash flow of 306M shows concerning coverage of minority interest expenses of (21M), which is -14.57x, suggesting complex corporate structure risks.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Engineering & Construction
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PWR Quanta Services, Inc. 62.71 Bn 61.60 2.31 6.02 Bn
2 FER Ferrovial SE 48.08 Bn 14.25 5.05 -
3 FIX Comfort Systems Usa Inc 35.76 Bn 42.69 4.30 0.39 Bn
4 EME EMCOR Group, Inc. 29.29 Bn 25.91 1.80 0.42 Bn
5 APG APi Group Corp 17.37 Bn 111.36 2.27 3.05 Bn
6 MTZ Mastec Inc 17.01 Bn 51.39 1.24 2.77 Bn
7 J Jacobs Solutions Inc. 16.94 Bn 58.56 1.41 2.71 Bn
8 BLD TopBuild Corp 13.35 Bn 23.52 2.55 3.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.56 1.61
EV to Cash from Ops. EV/CFO 20.85 6.94
EV to Debt EV to Debt 5.96 11.81
EV to EBIT EV/EBIT 1.44 17.80
EV to EBITDA EV/EBITDA -39.87 13.77
EV to Free Cash Flow [EV/FCF] EV/FCF 27.62 55.77
EV to Market Cap EV to Market Cap 0.85 1.20
EV to Revenue EV/Rev 0.41 1.65
Price to Book Value [P/B] P/B 1.44 5.81
Price to Earnings [P/E] P/E 2.21 35.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 2.51
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 25.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.24
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.05
Interest Coverage Int. cover (Qtr) 102.91 80.15
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 38.52 -166.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.67 637.72
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.87
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,098.91 92.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -153.33 8.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 711.93 85.34
EBT Growth (1y) % EBT 1y % (Qtr) 781.69 42.07
EPS Growth (1y) % EPS 1y % (Qtr) 1,254.05 43.76
FCF Growth (1y) % FCF 1y % (Qtr) -66.38 -20.95
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -110.44 32.46
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.36 1.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.73 0.38
Current Ratio Curr Ratio (Qtr) 1.45 1.55
Debt to Equity Ratio Debt/Equity (Qtr) 0.21 0.89
Interest Cover Ratio Int Coverage (Qtr) 102.91 80.15
Times Interest Earned Times Interest Earned (Qtr) 102.91 80.15
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 28.80 0.40
EBIT Margin % EBIT Margin % (Qtr) 28.39 -2.31
EBT Margin % EBT Margin % (Qtr) 28.11 -4.59
Gross Margin % Gross Margin % (Qtr) -0.30 20.38
Net Profit Margin % Net Margin % (Qtr) 21.70 -5.96