FLR
Fluor Corporation
Industrial/Transportation
05/17/2023
Presented
| Date | 05/12/2023 |
| Price | $25.83 |
| Market Cap | $3.70B |
| Ent Value | $3.26B |
| P/E Ratio | N/A |
| Book Value | $12.00 |
| Div Yield | 0% |
| Shares O/S | 143.24M |
| Ave Daily Vol | 1,664,871 |
| Short Int | 17.77% |
Current
| Price | $50.47 |
| Market Cap | $8.64B |
| Fluor Corp. operates as a holding company. The firm engages in the provision of engineering, procurement, construction, fabrication and modularization, operations, maintenance and asset integrity, as well as project management services, on a global basis. It operates through the following segments: Energy & Chemicals, Mining & Industrial, Infrastructure & Power, Diversified Services and Government. The Energy & Chemicals segment focuses on opportunities in the upstream, midstream, downstream, chemical, petrochemical, offshore and onshore oil and gas production, liquefied natural gas and pipeline markets. The Mining & Industrial segment provides design, engineering, procurement, construction and project management services to the mining and metals, transportation, life sciences, advanced manufacturing and technologies sectors. The Infrastructure & Power segment provides design, engineering procurement, construction and project management services to the infrastructure sector. The Diversified Services segment provides asset services, asset integrity services, equipment solutions and staffing services. The Government segment provides engineering, construction, logistics, base and facilities operations and maintenance, contingency response and environmental and nuclear services to the U.S. government and governments abroad. The company was founded by John Simon Flour, Sr. in 1912 and is headquartered in Irving, TX. |
Publicly traded companies mentioned herein: Flour Corp. (FLR), NuScale Power Corp. (SMR)
Highlights
The presenter is long shares of Fluor Corp (FLR), a global engineering and construction company. He views the stock as undervalued following real momentum from the new management’s strategic priorities (established in 2021) of growing a lower risk and sustainable diversified revenue stream in its leading markets. The presenter believes that the prevailing negative market sentiment is predominantly due to the company’s track record of low profitability in businesses that have featured high-risk, long-term fixed price contracts in cyclical energy related businesses and a long history of missing estimates under prior management. As some bad legacy contracts roll off the business should show more favorable performance trends, leading to growth that should see EBITDA move from $300MM today to $900MM 2 years out.
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