Chicago Bridge & Iron Company N.V. (NYSE:CBI)

CAPS Rating: 5 out of 5

An engineering, procurement and construction company, serving customers in a number of key industries including oil and gas; petrochemical and chemical; power; water and wastewater; and metals and mining.

Results 1 - 20 of 204 : 1 2 3 4 5 6 7 8 9 10 Next »

Recs

0
Member Avatar SnowBawl (< 20) Submitted: 6/24/2014 7:49:17 AM : Outperform Start Price: $69.85 CBI Score: -1.72

LNG infrastructure (Anderson, Money Morning).

Recs

0
Member Avatar simplemts (< 20) Submitted: 6/19/2014 11:38:04 AM : Underperform Start Price: $72.06 CBI Score: +4.44

short-term.

Recs

0
Member Avatar MotleyViking (98.75) Submitted: 6/18/2014 6:51:07 PM : Outperform Start Price: $70.95 CBI Score: -2.80

I don't trust the firm that put out the report about questionable accounting practices. Accounting irregularities are never good, but I'll take a flyer here after a significant pullback. Should get more clarity on the issue from the company within the coming weeks/next earnings report.

Recs

0
Member Avatar TMFDeej (99.40) Submitted: 6/18/2014 12:54:39 PM : Outperform Start Price: $68.68 CBI Score: -0.37

The shorts, questioning CBI's accounting practices, have driven shares to a very attractive level.

Jason

Recs

0
Member Avatar DrGoldin (99.71) Submitted: 6/18/2014 12:04:57 AM : Outperform Start Price: $69.25 CBI Score: -1.22

If shorts are giving me a 7% reason to buy CBI, I'm in. Here's a sound company with good growth prospects, very fine returns, limited debt. I think some analyst upgrades are just around the corner.

Recs

0
Member Avatar GDavenport (< 20) Submitted: 1/31/2014 7:18:56 PM : Outperform Start Price: $74.78 CBI Score: -18.31

CB&I is now a conglomerate of integrated businesses and comprises some key aspects an infrastructure play requires to be "full service" to chemical, oil or other client. They have an EPFC value chain which is significant and not currently captured by other firms in their segment. (Engineer,Procure,Fabricate, Construct).

With mega project exposure and a backlog of booked work that will take years to work off, they are set to grow and grow and grow.

In LNG plant growth, they are offering an excellent alternative to the venerable COP Cascade process through their strategic partnerships. This means they are likely to get much of the work that is not sent to Bechtel (a private company and very good infrastructure play all of their own).

Recs

0
Member Avatar ShortStroke (< 20) Submitted: 12/24/2013 3:47:13 PM : Outperform Start Price: $81.66 CBI Score: -22.88

NATURAL GAS HAS TO MOVE FROM WHERE IT IS TO WHERE IT IS GOING AND THAT TAKES PIPE LINES

Recs

0
Member Avatar Khalifir (36.70) Submitted: 11/8/2013 12:55:41 PM : Outperform Start Price: $60.09 CBI Score: -4.12

Bright future over the next 3 years!

Recs

0
Member Avatar K28hill (30.41) Submitted: 10/28/2013 10:48:55 PM : Outperform Start Price: $74.00 CBI Score: -18.16

Annualized performance of 51% for past 5 years. Contracted out growth has big upside.

Recs

0
Member Avatar Trololololo (< 20) Submitted: 10/28/2013 1:29:06 PM : Outperform Start Price: $73.42 CBI Score: -17.64

I believe this company is undervalued and has shown consistent performance. I love companies that aren't sexy, but which quietly rack up consistent earnings and cash flow growth.

Recs

0
Member Avatar rbpeacock04 (< 20) Submitted: 9/12/2013 10:34:26 PM : Outperform Start Price: $64.13 CBI Score: -8.66

Good play on the growing need for natural gas infrastructure.

Recs

0
Member Avatar lnsksr (< 20) Submitted: 8/27/2013 10:35:55 PM : Outperform Start Price: $60.34 CBI Score: -6.06

Lot of growth in US and international infrastructure

Recs

0
Member Avatar drnetops (< 20) Submitted: 8/19/2013 6:35:58 AM : Outperform Start Price: $60.89 CBI Score: -5.36

buffet

Recs

0
Member Avatar pjgz (29.70) Submitted: 6/8/2013 9:06:33 AM : Outperform Start Price: $60.95 CBI Score: -5.73

Fracking, LNG refinery buildouts, and pipe/infrastructure getting Shalegas to refineries, especially on West coast

Recs

0
Member Avatar freecapital (74.27) Submitted: 5/20/2013 8:12:30 PM : Outperform Start Price: $63.24 CBI Score: -8.57

jj

Recs

0
Member Avatar modestus1 (< 20) Submitted: 5/18/2013 6:03:22 AM : Outperform Start Price: $61.73 CBI Score: -6.09

We need to update our aging infrastructure.

Recs

1
Member Avatar ROEoutshinesGOLD (99.02) Submitted: 5/16/2013 3:30:54 PM : Outperform Start Price: $53.60 CBI Score: +5.22

- CBI is Warren Buffett's new portfolio addition with 6,508,600 shares purchased at $53 per share on average.
- The holding is 0.48% of Berkshire's portfolio, and 6.15% of shares outstanding.
- Company had an annual average earnings growth of 20.7% over the past 10 years.
( source: nasdaq.com/article/warren-buffetts-berkshire-news-stakes-in-starz-and-chicago-bridge-iron-cm246467 )
( you can investigate the long term growth rates (up to10 yr.) here: financials.morningstar.com/ratios/r.html?t=CBI )
___________________________________________________________________________________________________
___________________________________________________________________________________________________

From the S&P:

S&P Star Ranking = [4****]
(1=lowest, 5=highest)
- Our buy recommendation is based on our view of more favorable prospects in the emerging regions, and an expanded presence in the energy sector following the recent acquisition of Shaw Group. Our blended valuation metrics indicate the shares have further upside potential.
- Risks to our recommendation and target price include a decline in new project awards, fewer large projects, additional subcontractor labor costs and adverse weather, scarcity of engineering talent, a sustained slowdown in energy construction spending, a stronger U.S. dollar, and sharply lower oil prices.

S&P Fair Value Rank = [5]
(1=most overvalued, 5=most undervalued)

Fair Value Calculation = [$76.60]
Analysis of the stock's current worth, based on S&P's proprietary quantitative model suggests that CBI is Undervalued by $18.84 or 32.6%.

12-Mo. Target Price = [$70.00]
Our 12-month target price of $70 is based on a blend of two metrics. The stock recently traded at 13X our 2013 operating EPS estimate, a 10% discount to S&P Capital IQ's Construction & Engineering (C&E) group. With favorable trends in core markets, we apply a multiple of 16.5X to our 2013 operating EPS estimate, resulting in a $73 value. Our DCF analysis, assuming a weighted average cost of capital of 11.6% and terminal growth of 3%, indicates intrinsic value of $67.

Investability Quotient Percentile = [75%]
(1=lowest, 100=highest)
(The IQ is a measure of investment desirability. It serves as an indicator of potential medium-to-long term return and as a caution against downside risk. The measure takes into account variables such as technical indicators, earnings estimates, liquidity, financial ratios and selected S&P proprietary measures.)

Relative Strength Rank = [68]
(Shows, on a scale of 1 to 99, how the stock has performed versus all other companies in S&P's universe on a rolling 13-week basis.)

S&P Quality Ranking = [not ranked]

- We project close to 20% revenue growth for 2013, driven by increased activity for both large and small projects, and contributions from Shaw. In our view, customer spending will pick up for liquefied natural gas (LNG) in Asia/Pacific, the Middle East and Latin America, as well as in Russia and China, while the U.S. petrochemicals markets remain strong. Oil sands projects should continue to grow along with shale and other natural gas projects. CBI acquired Shaw Group in mid-February 2013.

- In our view, gross margins (before D&A) will narrow somewhat to about 12% in 2013, based on acquired projects and a mix shift toward the lower-margin construction phase of projects. We believe EBITDA margins in 2013 will benefit from well controlled SG&A expense (about 0.40 percentage point reduction seen), and better operating leverage, while execution and quality of backlog appear solid.

- We look for higher interest expense in 2013, with the effective tax rate rising to about 32% based on higher tax jurisdictions, and we estimate operating EPS of $4.40, increasing 17% to $5.15 in 2014.

___________________________________________________________________________________________________

Sub-Industry Outlook (by S&P): POSITIVE:

We remain positive on our fundamental outlook for the construction & engineering sub-industry group, despite still uncertain global economic prospects, as we see a pickup in bookings for oil & gas, chemicals, infrastructure and other projects. New air emissions regulations should also drive backlog growth over the next few years.

Although the price of crude oil has retreated recently due to weaker than expected economic reports in the U.S. and China, it remains relatively high at above $90 a barrel. Oil prices remain well above the critical $60- to $70-a barrel level that oil companies budget for projects. At the current levels, we expect most projects to go ahead as planned, although the timing of new bookings will likely remain lumpy based on global uncertainties, especially in Europe. Additionally, potential federal spending cuts would limit certain projects. We see capital spending increasing for upstream drilling and exploration projects in the Canadian oil sands, and natural gas projects, while low gas prices continue to drive petrochemical projects. Meanwhile, acquisition activity should continue to strengthen due to low borrowing rates and favorable multiples. Chicago Bridge & Iron (CBI 51, Buy) acquired Shaw Group in early 2013 for more than $3 billion in cash and stock.

In our view, several major players should benefit from power generation projects, including coal-fired plants, oil & gas, and shale gas drilling primarily in Pennsylvania and Texas. However, we still see state and local government budget shortfalls impacting certain projects. In March 2012, the Senate passed a $109 billion two-year highway bill, following nine three-month highway funding stopgaps passed since the transportation law expired in 2009. Meanwhile, transportation budget cuts have eliminated spending for high-speed passenger rails. However, recent bond issues should benefit other transportation and public buildings projects, while the re-election of President Obama bodes well for environmental projects, in our view.

Year to date through April 12, the S&P Construction & Engineering Index was up 8.3%, versus the S&P 1500's 11.5% gain. Over the past 13 weeks, the group rose 4.3%, versus an 8% advance for the market index. With valuations well below historical levels and long-term prospects still robust, in our view, we think this above-average beta group will outperform the market over the next 12 months, led by those companies that are well diversified by geography and sector. The C&E Index recently traded at above 14X 2013's forecast, a modest discount to that of the market. We project EPS growth of 13% in 2013 and nearly 20% in 2014.

-- Stewart Scharf
___________________________________________________________________________________________________

S&P Analyst Research Notes and other Company News:

May 2, 2013
05:46 pm ET ... S&P REITERATES BUY OPINION ON SHARES OF CHICAGO BRIDGE & IRON (CBI 53.63****): We keep our target price at $70, based on our relative and DCF metrics, equaling a premium-to-peers P/E of 16X our $4.40 operating EPS estimate for '13, based on positive prospects we see as it expands its energy infrastructure footprint with the recent Shaw Group acquisition. Q1 EPS of $0.82 before $0.50 charge, vs. $0.60, missed our estimate by $0.08 but beat the Capital IQ consensus by $0.07. CBI reaffirmed '13 guidance. Despite a recent postponed LNG project in Australia, we see favorable global trends in the energy sector, as total new awards rose 14% in Q1 to $1.95B.

-- Stewart Scharf

Recs

1
Member Avatar chk999 (99.97) Submitted: 5/16/2013 11:36:15 AM : Outperform Start Price: $59.59 CBI Score: -2.40

Buffett

Recs

0
Member Avatar billwdude (95.18) Submitted: 5/15/2013 8:18:11 PM : Underperform Start Price: $59.03 CBI Score: +1.65

Rating based on the purchase of the Shaw Group. A $3B purchase that in my opinion will turn out to be challenging. The reputation of the Shaw group speaks for itself.

Recs

0
Member Avatar mrvenkat (< 20) Submitted: 5/3/2013 3:04:08 PM : Outperform Start Price: $55.02 CBI Score: +3.69

Abundant supply of natural gas will require new infrastructure. CBI is a major player in this space

Featured Broker Partners


Advertisement