NYSE:FLR

Stock Analysis Report

Executive Summary

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, operation, maintenance and asset integrity, and project management services worldwide.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Fluor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FLR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-24.2%

FLR

-8.0%

US Construction

-7.6%

US Market


1 Year Return

-70.7%

FLR

5.2%

US Construction

10.2%

US Market

Return vs Industry: FLR underperformed the US Construction industry which returned 7.1% over the past year.

Return vs Market: FLR underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

FLRIndustryMarket
7 Day-24.2%-8.0%-7.6%
30 Day-42.0%-6.4%-4.5%
90 Day-36.8%-4.8%-0.6%
1 Year-69.7%-70.7%6.0%5.2%12.5%10.2%
3 Year-78.9%-80.2%-0.9%-3.0%37.1%28.3%
5 Year-79.1%-81.0%31.8%27.2%60.8%43.2%

Price Volatility Vs. Market

How volatile is Fluor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fluor undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLR ($12.37) is trading below our estimate of fair value ($47.03)

Significantly Below Fair Value: FLR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FLR is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: FLR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FLR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FLR is good value based on its PB Ratio (1.1x) compared to the US Construction industry average (1.8x).


Next Steps

Future Growth

How is Fluor forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

94.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: FLR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FLR's is expected to become profitable in the next 3 years.

Revenue vs Market: FLR's revenue (3.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FLR's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLR's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Fluor performed over the past 5 years?

-57.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLR is currently unprofitable.

Growing Profit Margin: FLR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FLR is unprofitable, and losses have increased over the past 5 years at a rate of -57% per year.

Accelerating Growth: Unable to compare FLR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FLR is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (2.4%).


Return on Equity

High ROE: FLR has a negative Return on Equity (-74.31%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fluor's financial position?


Financial Position Analysis

Short Term Liabilities: FLR's short term assets ($5.3B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: FLR's short term assets ($5.3B) exceed its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: FLR's debt to equity ratio (99.9%) is considered high.

Reducing Debt: FLR's debt to equity ratio has increased from 14.4% to 99.9% over the past 5 years.


Balance Sheet

Inventory Level: FLR has a low level of unsold assets or inventory.

Debt Coverage by Assets: FLR's debt is covered by short term assets (assets are 3.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FLR has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: FLR has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Fluor's current dividend yield, its reliability and sustainability?

3.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FLR's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: FLR's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: FLR's dividend payments have been volatile in the past 10 years.

Growing Dividend: FLR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: FLR is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: FLR's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Carlos Hernandez (64yo)

0.8yrs

Tenure

US$4,052,849

Compensation

Mr. Carlos M. Hernandez has been the Chief Executive Officer and Director of Fluor Corporation since May 16, 2019. Mr. Hernandez served as an Executive Vice President, Chief Legal Officer and Secretary at  ...


CEO Compensation Analysis

Compensation vs Market: Carlos's total compensation ($USD4.05M) is about average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Carlos's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Carlos Hernandez
CEO & Director0.8yrsUS$4.05m0.082% $1.3m
Ray Barnard
Executive Vice President of Systems & Supply Chain7.1yrsUS$2.72m0.026% $407.1k
Garry Flowers
Executive Vice President16.3yrsUS$3.10m0.11% $1.7m
Bruce Stanski
Office of the CEO0.7yrsUS$3.62m0.031% $474.0k
Jose Luis de Bustamante
Executive Vice President of Business Development & Strategy5yrsUS$2.60m0.026% $399.4k
Alan Boeckmann
Executive Chairman0.8yrsUS$102.51k0.013% $201.9k
Douglas Steuert
Chief Financial Officer0.7yrsUS$1.62mno data
Robin Chopra
Senior VP3.9yrsno data0.0032% $49.6k
Robert Taylor
Chief Information Officer & Senior VP - Information Technology0yrsno datano data
Jason Landkamer
Director of Investor Relations0yrsno datano data

3.9yrs

Average Tenure

62yo

Average Age

Experienced Management: FLR's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carlos Hernandez
CEO & Director0.8yrsUS$4.05m0.082% $1.3m
Alan Boeckmann
Executive Chairman0.8yrsUS$102.51k0.013% $201.9k
James Hackett
Independent Director3.5yrsUS$285.19k0.015% $231.5k
Peter Barker
Independent Director12.7yrsUS$305.19k0.012% $191.6k
Deborah McWhinney
Independent Director6yrsUS$285.19k0.0084% $129.3k
Armando Olivera
Independent Director7.5yrsUS$285.19k0.0018% $27.4k
Peter Fluor
Lead Independent Director17yrsUS$330.19k0.094% $1.5m
Alan Bennett
Independent Director8.3yrsUS$302.51k0.0085% $131.3k
Rosemary Berkery
Independent Director9.7yrsUS$285.19k0.010% $160.6k
David Constable
Director0.4yrsno datano data

6.8yrs

Average Tenure

67.5yo

Average Age

Experienced Board: FLR's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fluor Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fluor Corporation
  • Ticker: FLR
  • Exchange: NYSE
  • Founded: 1912
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$1.546b
  • Shares outstanding: 140.17m
  • Website: https://www.fluor.com

Number of Employees


Location

  • Fluor Corporation
  • 6700 Las Colinas Boulevard
  • Irving
  • Texas
  • 75039
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLRNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2000
FLUDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2000
FLR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2000
0IQCLSE (London Stock Exchange)YesCommon StockGBUSDDec 2000

Biography

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, operation, maintenance and asset integrity, and project management services worldwide. It operates through four segments: Energy & Chemicals; Mining, Industrial, Infrastructure & Power; Diversified Services; and Government. The Energy & Chemicals segment offers a range of design, engineering, procurement, construction, fabrication, and project management services in the upstream, midstream, downstream, chemical, petrochemical, offshore and onshore oil and gas production, liquefied natural gas and pipeline markets. The Mining, Industrial, Infrastructure & Power segment provides design, engineering, procurement, construction, and project management services to the mining and metals, transportation, life sciences, advanced manufacturing, and power sectors. The Government segment offers engineering, construction, logistics, base and facilities operations and maintenance, contingency response, and environmental and nuclear services to the United States government, as well as governments internationally. It also provides engineering and construction services, logistics, and life-support services, as well as contingency operations support services to the defense sector. The Diversified Services segment provides asset services, asset integrity services, equipment solutions, and staffing services to the oil and gas, chemicals, life sciences, power, mining and metals, consumer products, and manufacturing industries; site and fleet management services; and technical, professional, and craft resources. The company also offers unionized management and construction services. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:52
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.