FLR - Embedded Expectations Analysis - 2021 06 25
Fluor Corporation (FLR:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 22.9x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their end markets, energy transition capabilities, and project pipelineSpecifically, management may have concerns about the performance of their end markets and uncertainty regarding troop withdrawal in Afghanistan. Additionally, they may lack confidence in their ability to strengthen their NuScale partnership with JGC, help Fujifilm ramp up its biotech manufacturing plant, and secure further investments. Moreover, they may be concerned about the impact of the pandemic on their project pipeline and the progress of their LNG Canada negotiations. Finally, they may be overstating their interest in executing a reduced-carbon strategy, their green energy transition capabilities, and the potential of their front-end engineering and design (FEED) work
Fluor is a holding company. Through its subsidiaries, the company provides engineering, procurement, construction, fabrication and modularization, operations, maintenance and asset integrity, as well as project management services. The company serves a set of industries including oil and gas, chemicals and petrochemicals, mining and metals, transportation, power, life sciences and manufacturing. The company is also a service provider to the U.S. federal government and governments abroad; and it performs operations, maintenance and asset integrity activities for industrial clients. The company has four segments: Energy & Chemicals; Mining, Industrial, Infrastructure & Power; Diversified Services; and Government.
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