Last Updated: 09 Nov 2024
Executive Summary
Fluor Corporation (FLR) is a leading provider of engineering, procurement, construction, and maintenance services to the energy, industrial, and infrastructure sectors. The company has a strong track record of execution and a diversified portfolio of projects. FLR's financial performance has been solid in recent years, with revenue and earnings growing steadily. The company's valuation is attractive relative to its peers, and analysts are generally bullish on its long-term prospects.
Company Overview
Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas. The company has a global presence, with operations in over 100 countries. FLR provides a wide range of services, including:
Engineering and design
Procurement and supply chain management
Construction and project management
Maintenance and operations
Asset integrity and management
FLR's clients include major oil and gas companies, power utilities, chemical and pharmaceutical companies, and government agencies.
Fundamental Analysis
FLR's financial performance has been solid in recent years. Revenue has grown from $14.2 billion in 2017 to $15.7 billion in 2023. Earnings per share (EPS) have also grown, from $1.73 in 2017 to $2.33 in 2023.
FLR's balance sheet is also strong. The company has a low level of debt and a high level of liquidity. This gives FLR the financial flexibility to invest in new projects and to weather economic downturns.
FLR's valuation is attractive relative to its peers. The company trades at a price-to-earnings (PE) ratio of 25.29, which is below the average PE ratio of 27.5 for the construction sector. FLR also trades at a discount to its book value, which is $12.51 per share.
Technical Analysis
FLR's stock price has been trending higher in recent months. The stock broke out of a consolidation pattern in early 2023 and has since rallied to a 52-week high of $60.1. The stock is currently trading at $50.93, which is above its 50-day and 200-day moving averages.
The technical indicators are also bullish for FLR. The relative strength index (RSI) is above 50, which indicates that the stock is not overbought. The moving average convergence divergence (MACD) is also above zero, which indicates that the stock is in a bullish trend.
Short Term Outlook
The short-term outlook for FLR is positive. The stock is trading above its key moving averages and the technical indicators are bullish. The company's financial performance is also solid, and the valuation is attractive.
Long Term Outlook
The long-term outlook for FLR is also positive. The company is a leader in the construction industry and has a strong track record of execution. FLR's diversified portfolio of projects and its strong balance sheet give it the financial flexibility to weather economic downturns and to invest in new projects.
Analyst Recommendations
Analysts are generally bullish on FLR's long-term prospects. The average analyst rating for FLR is "Buy," and the average analyst target price is $57.44.
