Fluor (FLR): Valuation Check After New Highland Valley Copper Win and LNG Canada Train 2 Milestone

Fluor (FLR) just landed a major win in Canada, securing Teck Resources’ Highland Valley Copper Mine life extension project while also wrapping up Train 2 of the LNG Canada build, and both deals sharpen the stock’s long term project backlog story. See our latest analysis for Fluor. Even with these contract wins, Fluor’s $43.6 share price is still digesting earlier disappointment, with a negative year to date share price return but a solid five year total shareholder return suggesting longer term momentum is intact rather than broken. If these projects have you thinking about where else large, complex builds could translate into shareholder gains, it is worth scanning fast growing stocks with high insider ownership for other under the radar compounders. Yet with earnings disappointment still fresh and the stock trading only modestly below analyst targets, is Fluor a mispriced long term compounder after recent wins, or is the market already factoring in its next growth leg? Most Popular Narrative: 14.5% Undervalued With Fluor last closing at $43.60 against a narrative fair value of $51.00, the current price implies a meaningful valuation gap that hinges on execution and backlog conversion. The strong backlog and significant new awards in life sciences, infrastructure, and key projects in Urban Solutions are expected to boost future revenue and earnings. Continued expansions in strategic markets like pharmaceuticals, semiconductors, and data centers, along with advances in green steel and copper production projects, are anticipated to increase revenue and potentially improve net margins. Read the complete narrative. To see how this project heavy pipeline translates into financial metrics, from changes in revenue to shifts in margins and valuation multiples, review the full narrative and examine the model behind that fair value estimate. Result: Fair Value of $51 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, persistent project delays and foreign exchange driven margin hits could easily derail the earnings trajectory that underpins the current undervaluation narrative. Find out about the key risks to this Fluor narrative. Build Your Own Fluor Narrative If you see the story differently or want to stress test the assumptions yourself, you can build a personalized view in minutes: 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. Looking for more investment ideas? Do not stop at one opportunity when a world of potential is waiting. Use the Simply Wall Street Screener to uncover focused ideas that fit your strategy. Capture potential breakout names early by scanning these 3611 penny stocks with strong financials that pair tiny market caps with real financial substance and room to run. Position your portfolio at the frontier of technology by targeting these 26 AI penny stocks that are harnessing artificial intelligence for scalable, long term growth. Explore opportunities for stronger cash flow potential by zeroing in on these 908 undervalued stocks based on cash flows where prices have not yet caught up with the underlying fundamentals. 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.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech