Today's MarketStats on infrastructure and heavy construction companies include: Material Technologies, Inc. (OTCBB: MTTG), Granite Construction Incorporated (NYSE: GVA), Emerson Electronics (NYSE: EMR), Foster Wheeler Ltd. (Nasdaq: FWLT) and Fluor Corporation (NYSE: FLR).
Material Technologies, Inc. “MATECH” (OTCBB: MTTG) is an engineering, research and development company specializing in technologies to measure microscopic fractures and flaws in metal structures and monitor metal fatigue in real time. The company's leading edge metal fatigue detection, measurement and monitoring solutions can accurately test the integrity of metal structures and equipment including bridges, railroads, airplanes, ships, cranes, power plants, mining equipment, piping systems and heavy iron.
MATECH owns the only nondestructive testing technology able to find growing cracks as minute as 0.01 inches. MATECH has exclusive rights to seven patents along with $8.3 million in already completed contracts from the U.S. Government for research, testing and validation of its innovative solutions.
Material Technologies, Inc. (MTTG) closed yesterday at 0.37, a negative change of 0.09 or decline of 9.83% from the previous close of 0.86.The most appropriate valuation measure for MTTG is the Price to Sales ratio. The Price to Book ratio is excluded since it most likely underestimates the company's book value by overlooking hidden assets such as intellectual property, while the PE and PEG ratios are not meaningful due to lack of profitability. Therefore MTTG seems highly valued with a Price/Sales ratio of 204.6162, one of the highest in its industry.
To view a complete profile on Material Technologies, Inc., visit our financial courier StockUpTicks.com .
Emerson (NYSE: EMR) based in St. Louis, is a global leader in bringing technology and engineering together to provide innovative solutions to customers through its network power, process management, industrial automation, climate technologies, and appliance and tools businesses. Sales in fiscal 2007 were $22.6 billion. Emerson is engaged in designing and supplying product technology and delivering engineering services in a range of industrial, commercial and consumer markets globally.
EMR seems highly valued with a PEG value of 1.6176, one of the highest in the Conglomerates industry, however its PE ratio is only 19.6, slightly above the industry median of 15.58. Annual EPS for Emerson increased 20.36% from 2006 to 2007. EPS is expected to increase 12.78% from 2007 to 2008. Over a 200 day moving average, ERM, on a Relative Strength Analysis, has significantly out performed the S&P 500, which could be seen as a bullish indicator in the current environment.
Foster Wheeler Ltd. (Nasdaq: FWLT) is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the upstream oil and gas, LNG and gas-to-liquids, refining, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA.
FWLT seems a bit over bought with a PEG value of 1.8213, above the Construction Services industry median PEG of 1.53. Also its PE ratio of 27.3 is well above the industry median of 14.46. With a BETA of almost three times the market, Foster Wheeler could be poised for some additional volatility moving forward, especially given the fact that they are above their 200 day moving average, sitting on a 150% one-year return.
Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenues of $14.1 billion in 2006.
Fluor Corporation recently announced a 25% increase in its quarterly dividend to 25 cents ($0.25) per share on the company’s common stock, making it more attractive to shareholders looking for solid infrastructure plays.
FLR may be a bit over bought with a PEG value of 2.4185, above the Construction Services industry median PEG of 1.53. This is supported by a PE ratio of 32 – which is also well above the industry median of 14.46. Until the recent release of their 8-K (which I haven’t read yet, and the move could be attributed to the ISM number), Flour had seemed to find a level of resistance at $120 a share. Upon the release, they experienced a 6% drop in price. Given a 6-month technical pattern, the next level of resistance appears to be at $115. If it can hold, that will be seen as a positive for the company. If it closes below that level, additional pressure could test the $100 range.
Granite Construction Incorporated (NYSE: GVA) is a member of the S&P 400 Midcap Index, the Domini 400 Social Index and the Russell 2000. Granite Construction Company, a wholly owned subsidiary, is one of the nation's largest diversified heavy civil contractors and construction materials producers. Granite Construction Company serves public and private sector clients through its offices and subsidiaries nationwide.
GVA seems fairly valued with a PEG of 1.3155, which is in line with the Construction Services industry median of 1.53. GVA’s PE ratio stands at 16.7, slightly above the industry median of 14.46. Word of caution though, the short percentage in this company is significantly higher than others in its industry, sitting at 6.5% of the outstanding shares. However, if the company were to see a spike in price, it could benefit from short sellers covering their positions, creating the phenomenon known as a “short squeeze.”
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been granted two hundred forty thousand restricted shares of MTTG common stock by Material Technologies Inc. for preparation and distribution of this report and other services over a ninety-day period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
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