Fluor Corporation (FLR) vs Construction Partners, Inc. (ROAD)

Fluor Corporation and Construction Partners, Inc. are both Engineering & Construction companies. Fluor Corporation is the larger, with a market value of $6.0B against $4.4B — 1.4× the size. Fluor Corporation has negative trailing earnings, so its P/E is not meaningful; Construction Partners, Inc. trades at 30.2×. Construction Partners, Inc. grew revenue faster over the last twelve months: 41.9% against −4.78%. Construction Partners, Inc. has the higher net margin (4.10% vs −12.9%) and the higher return on invested capital (6.82% vs −16.6%). Across the 19 metrics below, Construction Partners, Inc. leads on 14 and Fluor Corporation on 5.

Valuation

Metric FLR ROAD Engineering & Construction median
P/E n/m 30.25 27.65
P/S 0.41 1.25 0.85
P/B 2.27 4.18 3.04
Price to free cash flow n/m 21.05 19.05
EV/EBITDA n/m 12.68 11.89
EV/Sales 0.28 1.74 1.20
Earnings yield (27.02%) 3.31% 2.77%
Free cash flow yield (3.25%) 4.75% 2.00%

Profitability

Metric FLR ROAD Engineering & Construction median
Gross margin (0.80%) 15.76% 18.76%
Operating margin (1.39%) 8.57% 6.43%
Net margin (12.85%) 4.10% 2.14%
Free cash flow margin (1.32%) 5.94% 1.12%
Return on equity (45.56%) 15.05% 6.05%
Return on assets (20.66%) 4.36% 1.19%
Return on invested capital (16.58%) 6.82% 2.52%

Growth

Metric FLR ROAD Engineering & Construction median
Revenue growth (TTM) (4.78%) 41.92% 18.09%
EPS growth (last fiscal year) (102.52%) 40.46% 13.42%
Revenue growth, 5-year CAGR (0.36%) 29.05% 12.23%
Net income growth, 5-year CAGR 0.00% 20.36% 0.00%

Health

Metric FLR ROAD Engineering & Construction median
Debt to equity 0.38 1.72 0.41
Current ratio 1.80 1.57 1.37
Net debt to EBITDA 8.72 3.86 0.38

Dividend

Metric FLR ROAD Engineering & Construction median
Dividend yield — — 0.68%
Payout ratio — — 0.18

Size

Metric FLR ROAD Engineering & Construction median
Market cap 6.02b 4.40b 1.13b

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