KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
44.09 USD
-0.5 (-1.12%)
Taking everything into account, KBR scores 5 out of 10 in our fundamental rating. KBR was compared to 87 industry peers in the Professional Services industry. While KBR is still in line with the averages on profitability rating, there are concerns on its financial health. KBR may be a bit undervalued, certainly considering the very reasonable score on growth Finally KBR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KBR was profitable.
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.
KBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KBR has a better Return On Assets (5.72%) than 63.22% of its industry peers.
With a decent Return On Equity value of 25.96%, KBR is doing good in the industry, outperforming 77.01% of the companies in the same industry.
KBR has a Return On Invested Capital (8.28%) which is comparable to the rest of the industry.
KBR had an Average Return On Invested Capital over the past 3 years of 8.52%. This is below the industry average of 12.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 25.96% | ||
| ROIC | 8.28% |
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
The Profit Margin of KBR (4.71%) is comparable to the rest of the industry.
KBR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 6.72%, KBR perfoms like the industry average, outperforming 57.47% of the companies in the same industry.
In the last couple of years the Operating Margin of KBR has grown nicely.
Looking at the Gross Margin, with a value of 14.28%, KBR is doing worse than 80.46% of the companies in the same industry.
KBR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.72% | ||
| PM (TTM) | 4.71% | ||
| GM | 14.28% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KBR is still creating some value.
KBR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KBR has been reduced compared to 5 years ago.
KBR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.53 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.53, KBR perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
KBR has a debt to FCF ratio of 5.59. This is a neutral value as KBR would need 5.59 years to pay back of all of its debts.
KBR's Debt to FCF ratio of 5.59 is in line compared to the rest of the industry. KBR outperforms 49.43% of its industry peers.
A Debt/Equity ratio of 1.75 is on the high side and indicates that KBR has dependencies on debt financing.
KBR has a Debt to Equity ratio of 1.75. This is amonst the worse of the industry: KBR underperforms 81.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.12
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.18 indicates that KBR should not have too much problems paying its short term obligations.
KBR has a Current ratio of 1.18. This is in the lower half of the industry: KBR underperforms 65.52% of its industry peers.
KBR has a Quick Ratio of 1.18. This is a normal value and indicates that KBR is financially healthy and should not expect problems in meeting its short term obligations.
KBR's Quick ratio of 1.18 is on the low side compared to the rest of the industry. KBR is outperformed by 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.04% over the past year.
The Earnings Per Share has been growing by 14.80% on average over the past years. This is quite good.
The Revenue has grown by 9.66% 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)22.04%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%21.43%
Revenue 1Y (TTM)9.66%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%-0.82%
3.2 Future
The Earnings Per Share is expected to grow by 16.31% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.62% on average over the next years.
EPS Next Y15.99%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
EPS Next 5Y16.31%
Revenue Next Year4.04%
Revenue Next 2Y4.44%
Revenue Next 3Y4.47%
Revenue Next 5Y6.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 11.54, the valuation of KBR can be described as very reasonable.
83.91% of the companies in the same industry are more expensive than KBR, based on the Price/Earnings ratio.
KBR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.41.
With a Price/Forward Earnings ratio of 10.55, the valuation of KBR can be described as very reasonable.
KBR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KBR is cheaper than 83.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, KBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
73.56% of the companies in the same industry are more expensive than KBR, based on the Enterprise Value to EBITDA ratio.
80.46% of the companies in the same industry are more expensive than KBR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 10.81 |
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.
PEG (NY)0.72
PEG (5Y)0.78
EPS Next 2Y11.7%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.62%.
Compared to an average industry Dividend Yield of 4.07, KBR pays a bit more dividend than its industry peers.
KBR's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of KBR is nicely growing with an annual growth rate of 11.11%!
KBR has been paying a dividend for at least 10 years, so it has 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 21.84% of its income as dividend. This is a sustainable payout ratio.
The dividend of KBR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.84%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
NYSE:KBR (12/5/2025, 11:00:34 AM)
44.09
-0.5 (-1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-1.59%
Ins Owners1.09%
Ins Owner Change-0.44%
Market Cap5.60B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts76.36
Price Target55.95 (26.9%)
Short Float %3.67%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend0.53
Dividend Growth(5Y)11.11%
DP21.84%
Div Incr Years5
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.83%
Min EPS beat(2)1.92%
Max EPS beat(2)5.73%
EPS beat(4)4
Avg EPS beat(4)7.64%
Min EPS beat(4)1.92%
Max EPS beat(4)12.56%
EPS beat(8)6
Avg EPS beat(8)5.21%
EPS beat(12)9
Avg EPS beat(12)6.19%
EPS beat(16)13
Avg EPS beat(16)6.47%
Revenue beat(2)0
Avg Revenue beat(2)-5.12%
Min Revenue beat(2)-7.14%
Max Revenue beat(2)-3.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-7.14%
Max Revenue beat(4)5.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.69%
Revenue beat(12)3
Avg Revenue beat(12)-1.33%
Revenue beat(16)3
Avg Revenue beat(16)-1.46%
PT rev (1m)-9.58%
PT rev (3m)-9.58%
EPS NQ rev (1m)-4.71%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-6.5%
Revenue NQ rev (3m)-6.55%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 10.55 | ||
| P/S | 0.69 | ||
| P/FCF | 12.01 | ||
| P/OCF | 10.91 | ||
| P/B | 3.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.81 |
EPS(TTM)3.82
EY8.66%
EPS(NY)4.18
Fwd EY9.48%
FCF(TTM)3.67
FCFY8.32%
OCF(TTM)4.04
OCFY9.16%
SpS63.47
BVpS11.53
TBVpS-15.36
PEG (NY)0.72
PEG (5Y)0.78
Graham Number31.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 25.96% | ||
| ROCE | 11.11% | ||
| ROIC | 8.28% | ||
| ROICexc | 9.31% | ||
| ROICexgc | 43.69% | ||
| OM | 6.72% | ||
| PM (TTM) | 4.71% | ||
| GM | 14.28% | ||
| FCFM | 5.78% |
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-Score8
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 27.17% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.75% | ||
| Profit Quality | 122.63% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.53 |
F-Score8
WACC7.42%
ROIC/WACC1.12
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)22.04%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%21.43%
EPS Next Y15.99%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
EPS Next 5Y16.31%
Revenue 1Y (TTM)9.66%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%-0.82%
Revenue Next Year4.04%
Revenue Next 2Y4.44%
Revenue Next 3Y4.47%
Revenue Next 5Y6.62%
EBIT growth 1Y1.31%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.21%
EBIT Next 3Y16.12%
EBIT Next 5Y12.64%
FCF growth 1Y115.74%
FCF growth 3Y16.9%
FCF growth 5Y10.28%
OCF growth 1Y66.56%
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 5 / 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 15.99% in the next year.