Fluor Corp. Faces Risky Valuation Amid Declining Stock Performance and Rising Costs

Fluor Corp., a small-cap player in the construction industry, has recently experienced an adjustment in its evaluation. The revision in its score reflects a shift in the valuation grade, moving from a previously favorable position to one characterized as risky. This change is influenced by several key financial metrics. The company's price-to-earnings (P/E) ratio stands at 4, indicating a significant divergence from industry norms. Additionally, Fluor's price-to-book value is recorded at 2.04, while its enterprise value to EBITDA ratio is 11.60. The enterprise value to sales ratio is notably low at 0.36, which may suggest challenges in revenue generation relative to its valuation. Despite a robust return on equity (ROE) of 50.43% and a return on capital employed (ROCE) of 20.07%, the stock has faced headwinds, with a reported decline of 19.63% over the past year, contrasting sharply with the S&P 500's positive performance. The company's debt-to-equity ratio remains average, and while it has shown strong long-term fundamentals, rising raw material costs have posed additional pressures. For those interested in further insights, you can Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.