A Look At Fluor (FLR) Valuation After Recent Share Price Momentum
Fluor (FLR) is back on investors’ radar after recent share price moves, prompting a closer look at how its current valuation, profit profile, and segment mix align with its recent returns.
See our latest analysis for Fluor.
That 7% 1 day share price return and 10.7% 7 day share price return to around $44.62 come against a weaker 1 year total shareholder return of an 11.7% decline, even though the 5 year total shareholder return is 130%, suggesting recent momentum has picked up after a softer period.
If you are reassessing your watchlist after this move, it could be a good moment to broaden your search with aerospace and defense stocks as another way to source ideas in related areas.
With Fluor trading around $44.62, a value score of 5, an intrinsic discount of roughly 20%, and a 12% gap to analyst targets, investors now have to ask whether this is a genuine entry point or whether the market is already pricing in future growth.
Most Popular Narrative: 12.5% Undervalued
Fluor's most followed narrative puts fair value at US$51 per share versus the recent US$44.62 price, framing the current discount around future earnings power and cash generation.
The company's new strategy focusing on cash generation and earnings growth is likely to improve net margins and enhance earnings. Expansion into strategic markets, coupled with project completions and acquisitions, is expected to increase revenue and enhance shareholder value.
Curious how a modest revenue growth outlook, thinner margins, and a higher future P/E can still add up to an undervalued call on Fluor's shares? The full narrative lays out the earnings path, the assumed profitability reset, and the valuation multiple that need to line up for that price to make sense.
Result: Fair Value of $51 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this depends on assumptions that could change, including project delays that shift revenue timing and foreign exchange movements that pressure margins and cash flow.
Find out about the key risks to this Fluor narrative.
Build Your Own Fluor Narrative
If you look at the story differently or prefer to test your own assumptions against the numbers, you can build a custom view in minutes with Do it your way.
A great starting point for your Fluor research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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