Is Fluor Stock Your Ticket to Becoming a Millionaire?

Core Insights - Fluor's stock has appreciated by approximately 365% over the past five years, translating to a compound annual growth rate of 36%, significantly outperforming the stock market's long-term average [1] Company Overview - Fluor is primarily an engineering and construction company, serving diverse sectors including oil and gas, mining, and power generation, and is often engaged in large infrastructure projects [2] Financial Performance - Despite a 365% increase in stock price, Fluor's revenue has only grown by 6.6% since 2020, while gross profits increased by 36% during the same period [3] - The price-to-sales ratio has surged from 0.07 to 0.47 since 2020, marking an increase of nearly 480% [3] - The company's profit margin averaged around 0% from 2020 to 2024 but has recently reached 25%, indicating improved cost management and execution [4] Valuation Dynamics - The significant appreciation in Fluor's stock price is largely attributed to a substantial increase in its valuation multiple rather than revenue or gross profit improvements [4] - The company's transition from a loss-making entity to a profitable business has led to a sharp rerating of its stock [4] Historical Context - Fluor's stock has experienced multiple cycles of extreme ups and downs, influenced by the cyclical nature of the engineering and construction industry [5] - The recent stock price spike is partly due to Fluor's investment in NuScale Power, which focuses on small modular reactor technology [7] New Business Ventures - Recent performance improvements have been driven by new business ventures, particularly in small modular reactors, which were not part of Fluor's operations in the past [8] Investment Considerations - While Fluor's recent stock performance has been strong, the company has historically been a disappointment for long-term investors due to the volatility in the engineering and construction sector [10] - The success of NuScale presents a potential long-term growth opportunity, suggesting that investors may benefit from focusing on this segment [11]