NYSE:FLR
$42.73
(2/9 11:30AM)
+0.7%
| Open | $43.09 |
Mkt Cap | $7.6 Billion |
| High | $43.46 |
52Wk High | $58.62 |
| Low | $42.48 |
52Wk Low | $30.21 |
| Volume | 1.4 Million |
Avg Vol 10D | 3.3 Million |
Ockham's Rating/Recommendation Summary
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FLR Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at FLR through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.62x and 0.30x respectively.
Utilizing this range we can see that FLR’s current Price to Sales per share ratio of 0.34x is significantly below its average levels historically. In fact, with a current price of $43.06, FLR is a full 27% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for FLR.
FLR Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of FLR, Ockham views their current Cash Earnings as significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for FLR to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 20.84 and a 10.72 low over the same period.
Now that FLR’s current price is $43.06 and its Price to Cash Earnings ratio is 8.17, we are very positive on its outlook from the cash earnings perspective. In fact, FLR is now trading a full 49% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why FLR has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
FLR Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for FLR, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. FLR’s estimated annual dividend is $0.50 resulting in a current dividend yield of 1.16%. The highest dividend yield from FLR over recent history was 3.17% while the lowest dividend yield was 0.46%. With that range in mind, FLR’s current dividend yield is a full 36.09% below its median dividend yield historically. This is a negative from our perspective.
News on FLR From the Pundits on Mad Money
The latest news from Mad Money on FLR is available through Ockham's news analytics platform RazorWire.
Fluor Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; FLR has received less coverage from the financial media in business television and blogs. Due to deterioration in our valuation, we downgraded FLR as of Saturday, January 09, 2010. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… My question is around the fact that I bought FLUOR in '09 and don't think it's a trade I can turn into a long-term capital gain due to force volatiivolatility. > > …”
News on FLR From the Pundits on Closing Bell
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on FLR from Closing Bell.
We noticed recently that in comparison to all other stocks we analyze in the news; FLR has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Based on our methodology, Fluor Corporation should hold some appeal to value investors as we view it as Undervalued.
“… General electric's had a great day and FLUOR, another construction name, doing, very, very well. I know it is a discretionary stock, maria, but ford and goodyear in the auto ... …”
FLR Back in the News on Closing Bell
After a month of relative quiet from FLR, they have appeared back in the news.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Fluor Corporation has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on FLR, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Top of the short covering some people went in long late in the morning on the east coast and finish up lifting the entire industrial sector, boeing, FLUOR, tech strom all up ... …”
Gross Margin of Fluor Corporation Gets Attention on Power Lunch
What portion of sales is FLR turning into profit? Power Lunch discussed this topic recently, and any investor will be interested in learnings the latest.
The Motley Fool CAPS data suggests that investors believe Fluor Corporation will beat the market in the foreseeable future. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Fluor Corporation has been talked about more than normal recently. We consider FLR as Undervalued at the current price of $42.60. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… why is the profit margin capped at 5%? > > reporter: 5. 6% is the most they can make and if they don't make certain metrics, they will get even less. …”
FLR's Profit Margin was Covered on Power Lunch
Improving profit margins is a great sign for investors, Power Lunch discussed FLR's margins recently.
Based on our methodology, Fluor Corporation should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of FLR, it is getting significantly more attention in recent news coverage than we are used to seeing. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Companies like FLUOR, honeywell, northrop grumman are partners > > we are a long-term participant in the government industry and the government we're a long-time participant in t... …”
Fluor Corporation Was Talked About by Squawk On The Street
The latest news on Squawk On The Street in regards to FLR came through on RazorWire recently.
At present, Ockham has a valuation stance of Undervalued on FLR, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. In comparison to the other stocks that we follow, Fluor Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… FLUOR is basically making a bet that that's going to change. A lot of projects already in the they think with the business of management and clean-up long after the recovery act... …”
Technicals and FLR on the Docket at Mad Money
For all those that pay attention to technicals, Mad Money discussed FLR from the technical perspective.
Based on our methodology, Fluor Corporation should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; FLR has received less coverage from the financial media in business television and blogs. Please have a look at our report for our reasons to upgrade the stock to Undervalued on our report dated Saturday, November 14, 2009.
“… FLUOR is the press conference. Jacobs is just a conversation. Whatever the heck she meant by I think what she really was trying to say, mariah carey was really trying to tell yo... …”
Stocks to Watch: FLR Heavily Covered on Mad Money
We are observing a lot of attention being paid to FLR in the news, so if you hold the stock you may want to take a look at what is going on.
Based on our methodology, Fluor Corporation should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; FLR has received less coverage from the financial media in business television and blogs. Please have a look at our report for our reasons to upgrade the stock to Undervalued on our report dated Saturday, November 14, 2009. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Recently shaw beat out FLUOR. We've had the shaw management on . …”
FLR Having an Active Day in News, Now on Mad Money
Something important is going on with FLR today, as it is getting a lot of attention on business television and influential blogs.
It is also notable that we have recently upgraded this stock on Saturday, November 14, 2009 because FLR is more attractive in many of the valuation metrics we evaluate. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Fluor Corporation has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on FLR, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… You go to FLUOR when you want to you go to jacobs for right now it looks like oil and gas companies are about to spend more, and that's expansion. …”
Looking at FLR's Technicals on Mad Money
For all those that pay attention to technicals, Mad Money discussed FLR from the technical perspective.
Based on our methodology, Fluor Corporation should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Please have a look at our report for our reasons to upgrade the stock to Undervalued on our report dated Saturday, November 14, 2009. We noticed recently that in comparison to all other stocks we analyze in the news; FLR has received less coverage from the financial media in business television and blogs.
“… If FLUOR could talk, it would say this to jacobs. You're a mom and pop i'm a corporation > > you're a mom and pop. . …”