Seeking Alpha: Is There Enough Gas In The Tank To Take CB&I Back Up?

The opportunity to leverage plentiful U.S. low-cost natural gas reserves into LNG exports is real and CB&I (CBI) has built itself into one of the best engineering, procurement, and construction companies in that space. Along the way it has also positioned itself as a strong player in chemicals and power, as well as a provider of process technologies for the chemical, refining, and gas processing markets.

CB&I has over 10 quarters of revenue already in the order book, and there is still the possibility (if not probability) of additional awards in LNG, chemicals, and OUS power plants. The catch, as is so often the case, is in the valuation. There's a pretty long record of EPC companies trading at forward EV/EBITDA multiples in the 8x to 10x range, and applying that range to CB&I doesn't point to much upside in a stock that has already risen 60% in the last year, 100% in the last two years, and almost 700% in the last five years.

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Is There Enough Gas In The Tank To Take CB&I Back Up?