KBR INC (KBR) Stock Fundamental Analysis
USA - NYSE:KBR - US48242W1062 - Common Stock
43.8 USD
-0.28 (-0.64%)
43.94 USD
+0.14 (+0.32%)
We assign a fundamental rating of 5 out of 10 to KBR. KBR was compared to 86 industry peers in the Professional Services industry. There are concerns on the financial health of KBR while its profitability can be described as average. KBR is valued quite cheap, while showing a decent growth score. This is a good combination! KBR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KBR had positive earnings in the past year.
KBR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KBR reported negative net income in multiple years.
In the past 5 years KBR always reported a positive cash flow from operatings.
1.2 Ratios
KBR's Return On Assets of 5.37% is fine compared to the rest of the industry. KBR outperforms 62.79% of its industry peers.
With a decent Return On Equity value of 24.55%, KBR is doing good in the industry, outperforming 79.07% of the companies in the same industry.
KBR has a Return On Invested Capital (8.56%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for KBR is below the industry average of 13.31%.
The last Return On Invested Capital (8.56%) for KBR is above the 3 year average (8.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 24.55% | ||
| ROIC | 8.56% |
ROA(3y)1.42%
ROA(5y)0.72%
ROE(3y)6.1%
ROE(5y)3.19%
ROIC(3y)8.52%
ROIC(5y)7.69%
1.3 Margins
KBR has a Profit Margin of 4.52%. This is in the better half of the industry: KBR outperforms 60.47% of its industry peers.
In the last couple of years the Profit Margin of KBR has grown nicely.
With a decent Operating Margin value of 7.02%, KBR is doing good in the industry, outperforming 60.47% of the companies in the same industry.
KBR's Operating Margin has improved in the last couple of years.
The Gross Margin of KBR (14.51%) is worse than 81.40% of its industry peers.
In the last couple of years the Gross Margin of KBR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.02% | ||
| PM (TTM) | 4.52% | ||
| GM | 14.51% |
OM growth 3Y7.95%
OM growth 5Y5.05%
PM growth 3Y136.13%
PM growth 5Y6.22%
GM growth 3Y9.06%
GM growth 5Y4.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KBR is creating some value.
Compared to 1 year ago, KBR has less shares outstanding
Compared to 5 years ago, KBR has less shares outstanding
KBR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.46 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
KBR's Altman-Z score of 2.46 is in line compared to the rest of the industry. KBR outperforms 45.35% of its industry peers.
KBR has a debt to FCF ratio of 6.22. This is a slightly negative value and a sign of low solvency as KBR would need 6.22 years to pay back of all of its debts.
KBR has a Debt to FCF ratio (6.22) which is in line with its industry peers.
A Debt/Equity ratio of 1.73 is on the high side and indicates that KBR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.73, KBR is doing worse than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.16
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.13 indicates that KBR should not have too much problems paying its short term obligations.
KBR's Current ratio of 1.13 is on the low side compared to the rest of the industry. KBR is outperformed by 65.12% of its industry peers.
KBR has a Quick Ratio of 1.13. This is a normal value and indicates that KBR is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.13, KBR is not doing good in the industry: 65.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
KBR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.74%, which is quite good.
Measured over the past years, KBR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.80% on average per year.
The Revenue has grown by 12.59% in the past year. This is quite good.
The Revenue has been growing slightly by 6.54% on average over the past years.
EPS 1Y (TTM)19.74%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%9.64%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%5.23%
3.2 Future
KBR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.71% yearly.
The Revenue is expected to grow by 6.54% on average over the next years.
EPS Next Y15.94%
EPS Next 2Y12.61%
EPS Next 3Y12.23%
EPS Next 5Y15.71%
Revenue Next Year5.22%
Revenue Next 2Y5.57%
Revenue Next 3Y5.09%
Revenue Next 5Y6.54%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.03, the valuation of KBR can be described as correct.
Based on the Price/Earnings ratio, KBR is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.08, KBR is valued rather cheaply.
KBR is valuated reasonably with a Price/Forward Earnings ratio of 10.31.
KBR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KBR is cheaper than 81.40% of the companies in the same industry.
KBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
KBR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KBR is cheaper than 73.26% of the companies in the same industry.
KBR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KBR is cheaper than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.44 | ||
| EV/EBITDA | 10.69 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of KBR may justify a higher PE ratio.
A more expensive valuation may be justified as KBR's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)0.75
PEG (5Y)0.81
EPS Next 2Y12.61%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.49%.
KBR's Dividend Yield is rather good when compared to the industry average which is at 3.93. KBR pays more dividend than 80.23% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.30, KBR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of KBR is nicely growing with an annual growth rate of 11.11%!
KBR has paid a dividend for at least 10 years, which is a reliable track record.
KBR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.11%
Div Incr Years5
Div Non Decr Years16
5.3 Sustainability
KBR pays out 22.19% of its income as dividend. This is a sustainable payout ratio.
KBR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.19%
EPS Next 2Y12.61%
EPS Next 3Y12.23%
43.8
-0.28 (-0.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change0.23%
Ins Owners1.09%
Ins Owner Change-0.25%
Market Cap5.64B
Revenue(TTM)8.08B
Net Income(TTM)365.00M
Analysts76.36
Price Target61.88 (41.28%)
Short Float %3.58%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.53
Dividend Growth(5Y)11.11%
DP22.19%
Div Incr Years5
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.24%
Min EPS beat(2)1.92%
Max EPS beat(2)12.56%
EPS beat(4)3
Avg EPS beat(4)6.01%
Min EPS beat(4)-0.8%
Max EPS beat(4)12.56%
EPS beat(8)5
Avg EPS beat(8)4.47%
EPS beat(12)9
Avg EPS beat(12)5.89%
EPS beat(16)13
Avg EPS beat(16)6.75%
Revenue beat(2)0
Avg Revenue beat(2)-4.45%
Min Revenue beat(2)-7.14%
Max Revenue beat(2)-1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-7.14%
Max Revenue beat(4)5.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.11%
PT rev (1m)0%
PT rev (3m)-6.87%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-8.75%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.7 | ||
| P/FCF | 13.44 | ||
| P/OCF | 11.81 | ||
| P/B | 3.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.69 |
EPS(TTM)3.64
EY8.31%
EPS(NY)4.25
Fwd EY9.7%
FCF(TTM)3.26
FCFY7.44%
OCF(TTM)3.71
OCFY8.47%
SpS62.68
BVpS11.54
TBVpS-15.27
PEG (NY)0.75
PEG (5Y)0.81
Graham Number30.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 24.55% | ||
| ROCE | 11.49% | ||
| ROIC | 8.56% | ||
| ROICexc | 9.33% | ||
| ROICexgc | 39.18% | ||
| OM | 7.02% | ||
| PM (TTM) | 4.52% | ||
| GM | 14.51% | ||
| FCFM | 5.2% |
ROA(3y)1.42%
ROA(5y)0.72%
ROE(3y)6.1%
ROE(5y)3.19%
ROIC(3y)8.52%
ROIC(5y)7.69%
ROICexc(3y)9.29%
ROICexc(5y)8.43%
ROICexgc(3y)40.75%
ROICexgc(5y)33.23%
ROCE(3y)11.42%
ROCE(5y)10.32%
ROICexgc growth 3Y11.5%
ROICexgc growth 5Y16.51%
ROICexc growth 3Y5.04%
ROICexc growth 5Y4.08%
OM growth 3Y7.95%
OM growth 5Y5.05%
PM growth 3Y136.13%
PM growth 5Y6.22%
GM growth 3Y9.06%
GM growth 5Y4.23%
F-Score7
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 6.22 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 33.92% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.77% | ||
| Profit Quality | 115.07% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.46 |
F-Score7
WACC7.39%
ROIC/WACC1.16
Cap/Depr(3y)52.64%
Cap/Depr(5y)40.13%
Cap/Sales(3y)1.08%
Cap/Sales(5y)0.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.74%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%9.64%
EPS Next Y15.94%
EPS Next 2Y12.61%
EPS Next 3Y12.23%
EPS Next 5Y15.71%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%5.23%
Revenue Next Year5.22%
Revenue Next 2Y5.57%
Revenue Next 3Y5.09%
Revenue Next 5Y6.54%
EBIT growth 1Y12.5%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.21%
EBIT Next 3Y16.12%
EBIT Next 5Y12.77%
FCF growth 1Y10.53%
FCF growth 3Y16.9%
FCF growth 5Y10.28%
OCF growth 1Y1.7%
OCF growth 3Y18.45%
OCF growth 5Y12.53%
KBR INC / KBR FAQ
Can you provide the ChartMill fundamental rating for KBR INC?
ChartMill assigns a fundamental rating of 5 / 10 to KBR.
What is the valuation status of KBR INC (KBR) stock?
ChartMill assigns a valuation rating of 8 / 10 to KBR INC (KBR). This can be considered as Undervalued.
What is the profitability of KBR stock?
KBR INC (KBR) has a profitability rating of 6 / 10.
Can you provide the financial health for KBR stock?
The financial health rating of KBR INC (KBR) is 3 / 10.
What is the earnings growth outlook for KBR INC?
The Earnings per Share (EPS) of KBR INC (KBR) is expected to grow by 15.94% in the next year.