Fluor(US:FLR) Financial Modeling Prepยท2025-11-07 01:00Core Viewpoint - Fluor Corporation (NYSE:FLR) is facing multiple securities fraud class action lawsuits that may affect investor sentiment, despite its potentially undervalued stock metrics as it prepares to release quarterly earnings on November 7, 2025 [1][6]. Financial Performance Expectations - The company anticipates an earnings per share (EPS) of $0.44 and revenue of approximately $4.2 billion for the upcoming quarterly earnings [1][6]. Legal Challenges - The lawsuits, initiated by firms such as Glancy Prongay & Murray LLP, Schall Law Firm, and Gross Law Firm, allege that FLR failed to disclose critical information regarding escalating project costs due to subcontractor design errors, price increases, and scheduling delays [2]. - These legal actions cover investors who purchased FLR securities between February 18, 2025, and July 31, 2025, with a lead plaintiff deadline set for November 14, 2025 [2]. Valuation Metrics - FLR's price-to-earnings (P/E) ratio is approximately 1.84, indicating a low valuation relative to its earnings [3]. - The price-to-sales ratio of 0.45 and enterprise value to sales ratio of 0.38 suggest that FLR's stock is trading at less than half of its annual sales per share, appealing to value investors [3]. Financial Health Indicators - The company has a debt-to-equity ratio of 0.18, indicating a low level of debt compared to its equity [4]. - A current ratio of 1.62 suggests that FLR has sufficient liquidity to cover its short-term liabilities [4]. - However, the enterprise value to operating cash flow ratio of 17.67 reflects a higher valuation in relation to its cash flow from operations, which investors should consider [4]. Future Considerations - As FLR approaches its earnings release, the outcome of the lawsuits and the company's ability to manage project costs amid economic uncertainty will be crucial for its financial performance and stock valuation [5].