Company Overview
Fluor Corporation operates globally by providing engineering, procurement, and construction (EPC) services, along with fabrication, modularization, and project management solutions to a diverse range of clients. The company functions within the Industrials sector, specifically the Engineering & Construction industry, which encompasses the delivery of complex infrastructure and capital projects worldwide. Its operational scale is substantial, characterized by a market capitalization of $7.02B, an annual revenue of $15.50B, and an employee base of 22,995 individuals. These valuation and revenue figures indicate that Fluor is a significant player in the industrial services landscape, possessing the capacity to manage large-scale urban, energy, and mission-critical projects through its distinct business segments.
Financial Health
The company reported a trailing twelve-month revenue of $15.50B, yet it recorded a net income of $-51,000,000 and an EBITDA of $-201,000,000, highlighting a significant disparity between top-line activity and bottom-line profitability. This gap between revenue and net income reveals a cost structure where operating expenses and taxes likely exceed earnings before interest and taxes, resulting in a reported net loss despite positive operating margins in some periods. The firm generated a free cash flow of $-292,375,008, which indicates a current consumption of cash resources rather than accumulation, suggesting limited financial flexibility for capital expenditures or acquisitions without external financing. Analyzing the margins shows a gross margin of -0.8%, an operating margin of 2.0%, and a profit margin of -0.3%, where the negative gross margin suggests that the cost of goods sold is exceeding revenue generation on a percentage basis, while the operating margin indicates that operating expenses are covering operating income with a slight surplus before the final profit erosion. Regarding liquidity and leverage, the company holds $3.77B in cash against $1.07B in debt, resulting in a debt-to-equity ratio of 32.65, which presents a mixed picture of high cash reserves offsetting substantial long-term obligations. The current ratio stands at 1.91, indicating that the company holds sufficient current assets to cover its short-term liabilities nearly twice over, which suggests a conservative stance on immediate liquidity management. Furthermore, the return on equity is -1.7% and the return on assets is -1.9%, metrics that reveal management is currently generating negative returns on the capital invested and the asset base utilized to generate revenue.
Valuation Assessment
Fluor Corporation presents a valuation profile defined by a trailing P/E ratio of N/A due to negative earnings, while the forward P/E is listed at 14.73, implying that the market anticipates a trajectory toward profitability in the coming year. The price-to-book ratio is 2.24, indicating that the stock is currently trading at a premium of more than double its book value per share, which may reflect market expectations of future growth or asset revaluation rather than current book value. Alternative valuation metrics include a price-to-sales ratio of 0.45 and an EV/EBITDA of -21.62, where the negative EV/EBITDA confirms that the company's enterprise value is driven by market capitalization rather than positive cash generation capabilities. The stock has traded within a 52-week range between a low of $29.20 and a high of $57.50, and based on the forward P/E context, the current valuation sits in a position that suggests potential upside if earnings turnaround occurs, though the specific current price relative to the high cannot be calculated without the exact spot price provided in the facts. The beta value is 1.28, which signifies that the stock exhibits volatility 28% higher than the broader market, meaning price fluctuations are amplified by general market movements.
Growth & Income
Revenue growth year-over-year stands at -2.0%, while earnings growth is listed as N/A, indicating that earnings are not growing in the traditional sense but are instead fluctuating with a current contraction in top-line revenue. This contraction implies that the company is currently in a cyclical downturn or facing specific project delays that impact its bottom line more severely than its revenue stream. As a non-dividend payer, the company does not distribute cash to shareholders, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning all available cash flow is theoretically retained for operational needs or strategic reinvestment rather than shareholder payouts. The overall growth and income profile is characterized by a contraction phase with no dividend support, requiring investors to rely solely on potential capital appreciation driven by a future return to profitability rather than current income generation or revenue expansion.