Fluor Corp

FLR

Heavy Construction Other Than Bldg Const - Contractors

Mkt Cap

$7.218B

PE

28.99

Debt

$1.149B

Cash

$2.335B

EV

$6.032B

FCF

$142M

Market Cap

$7.218B

P/E Ratio

28.99

Debt

$1.149B

Cash

$2.335B

EV

$6.032B

FCF

$142M

Charts data: {"Earnings":[{"time":"2014-12-30","value":510909000},{"time":"2015-12-30","value":412512000},{"time":"2016-12-30","value":281401000},{"time":"2017-12-30","value":191377000},{"time":"2018-12-30","value":224833000},{"time":"2019-12-30","value":-1553124000},{"time":"2020-12-30","value":-435046000},{"time":"2021-12-30","value":-464545000},{"time":"2022-12-30","value":73000000},{"time":"2023-12-30","value":79000000}],"Sales":[{"time":"2014-12-30","value":21531577000},{"time":"2015-12-30","value":18114048000},{"time":"2016-12-30","value":19036525000},{"time":"2017-12-30","value":19520970000},{"time":"2018-12-30","value":19166599000},{"time":"2019-12-30","value":14348018000},{"time":"2020-12-30","value":15668477000},{"time":"2021-12-30","value":12434879000},{"time":"2022-12-30","value":13744000000},{"time":"2023-12-30","value":15474000000}],"Net Margins":[{"time":"2014-12-30","value":0.02372835951588683},{"time":"2015-12-30","value":0.02277304333078945},{"time":"2016-12-30","value":0.014782162185587968},{"time":"2017-12-30","value":0.009803662420463738},{"time":"2018-12-30","value":0.011730458804924128},{"time":"2019-12-30","value":-0.1082465884835104},{"time":"2020-12-30","value":-0.027765685203482125},{"time":"2021-12-30","value":-0.037358224394463346},{"time":"2022-12-30","value":0.005311408614668219},{"time":"2023-12-30","value":0.005105337986299599}],"Assets":[{"time":"2014-12-30","value":8194429000},{"time":"2015-12-30","value":7631506000},{"time":"2016-12-30","value":9216417000},{"time":"2017-12-30","value":9327692000},{"time":"2018-12-30","value":8913637000},{"time":"2019-12-30","value":7966658000},{"time":"2020-12-30","value":7309812000},{"time":"2021-12-30","value":7279563000},{"time":"2022-12-30","value":6827000000},{"time":"2023-12-30","value":6973000000}],"Stockholders Equity":[{"time":"2014-12-30","value":3223830000},{"time":"2015-12-30","value":3113499000},{"time":"2016-12-30","value":3242831000},{"time":"2017-12-30","value":3492399000},{"time":"2018-12-30","value":3118050000},{"time":"2019-12-30","value":1584092000},{"time":"2020-12-30","value":1263227000},{"time":"2021-12-30","value":1566681000},{"time":"2022-12-30","value":1996000000},{"time":"2023-12-30","value":2052000000}],"ROE":[{"time":"2014-12-30","value":0.15847889001591275},{"time":"2015-12-30","value":0.13249145093671139},{"time":"2016-12-30","value":0.08677633832907111},{"time":"2017-12-30","value":0.05479814877967838},{"time":"2018-12-30","value":0.07210692580298585},{"time":"2019-12-30","value":-0.9804506303926792},{"time":"2020-12-30","value":-0.3443925755228474},{"time":"2021-12-30","value":-0.29651537230616826},{"time":"2022-12-30","value":0.03657314629258517},{"time":"2023-12-30","value":0.0384990253411306}],"ROA":[{"time":"2014-12-30","value":0.14704001950593507},{"time":"2015-12-30","value":0.09520427553879929},{"time":"2016-12-30","value":0.05930721233642097},{"time":"2017-12-30","value":0.04142943399074498},{"time":"2018-12-30","value":0.054046625412275597},{"time":"2019-12-30","value":-0.04843938323949641},{"time":"2020-12-30","value":0.04336636838266155},{"time":"2021-12-30","value":-0.008205162864858784},{"time":"2022-12-30","value":0.035740442361212835},{"time":"2023-12-30","value":0.04517424351068407}]}

Fluor Corporation provides engineering, procurement, and construction (EPC); fabrication and modularization; operation and maintenance; asset integrity; and project management services worldwide. It operates through four segments: Energy Solutions, Urban Solutions, Mission Solutions, and Other. The Energy Solutions segment provides solutions to the energy transition markets, including asset decarbonization, carbon capture, renewable fuels, waste-to-energy, green chemicals, hydrogen, nuclear power, and other low-carbon energy sources. It also provides consulting services, including feasibility studies, process assessments, and project finance structuring; and a range of services for small modular reactor technologies, as well as operation support services for nuclear power facilities and managing waste. This segment serves the oil, gas, and petrochemical industries. The Urban Solutions segment offers EPC and project management services to the infrastructure, advanced technologies, life sciences, and mining and metals industries. This segment also provides staffing services to the company and third-party clients with technical, professional, and craft resources on a contract or permanent placement basis. The Mission Solutions segment offers technical solutions to the U.S. and other governments. It also delivers solutions for nuclear security and operation, nuclear waste management, and laboratory management; and operation and maintenance, logistics, EPC, and life support solutions for mission-critical facilities across U.S. military service organizations. This segment offers site management, environmental remediation, and decommissioning for nuclear remediation at governmental facilities, as well as services to commercial nuclear clients. The Other segment researches, develops, licenses, and commercializes small modular reactor technology. The company was founded in 1912 and is headquartered in Irving, Texas.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Fluor Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$142M	$105.6M	$78.6M	$58.48M	$43.51M	$32.37M	$24.09M	$17.92M	$13.33M	$9.92M	$7.38M	$73.8M
DCF		$91.87M	$59.44M	$38.45M	$24.88M	$16.09M	$10.41M	$6.737M	$4.358M	$2.82M	$1.824M	$18.24M
Value	$275.1M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -15%

Earnings Stability -6.8%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	2.3%	1.5%	0.98%	1.2%	-11%	-2.8%	-3.7%	0.53%	0.51%	1.6%
ROA	9.5%	5.9%	4.1%	5.4%	-4.8%	4.3%	-0.82%	3.6%	4.5%	7.6%
ROE	13%	8.7%	5.5%	7.2%	-98%	-34%	-30%	3.7%	3.8%	12%

What is the average Net Margin?

The average Net Margin over the past 5 years is -2.52%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.85%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +2.03%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.45%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -24.57%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +8.37%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	1.63	3.40	5.08	-34.58	44.28	23.96	-23.49	-25.68	10.92	8.09
Debt Equity	0.32	0.49	0.46	0.54	1.07	1.37	0.75	0.57	0.56	0.56
MIN
Graham Stability	-	-	48%	76%	-670%	-	-	-	-	-670%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 8.09.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.85.

What is the Graham’s Stability?

Graham’s Stability measure stands at -6.68.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	-2.9%	-4.2%	-0.42%	13%	1.6%
Net Income	-17%	-19%	-	8.2%	4.7%
Stockholders Equity	-6.3%	-8%	18%	2.8%	2%
FCF	-19%	-	14%	-	7.8%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -4.19%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.58%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -18.88%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +4.72%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -8.03%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.96%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +7.78%.