KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
44.3 USD
-0.29 (-0.65%)
44.3 USD
0 (0%)
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. KBR has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
KBR had positive earnings in the past year.
In the past year KBR had a positive cash flow from operations.
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 Return On Assets of 5.72%. This is in the better half of the industry: KBR outperforms 63.22% of its industry peers.
Looking at the Return On Equity, with a value of 25.96%, KBR is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
KBR has a Return On Invested Capital of 8.28%. This is comparable to the rest of the industry: KBR outperforms 58.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KBR 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
KBR has a Profit Margin of 4.71%. This is comparable to the rest of the industry: KBR outperforms 59.77% of its industry peers.
KBR's Profit Margin has improved in the last couple of years.
KBR's Operating Margin of 6.72% is in line compared to the rest of the industry. KBR outperforms 57.47% of its industry peers.
KBR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 14.28%, KBR is not doing good in the industry: 80.46% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of KBR has grown nicely.
| 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
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
KBR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KBR has a worse debt to assets ratio.
2.2 Solvency
KBR has an Altman-Z score of 2.53. This is not the best score and indicates that KBR is in the grey zone with still only limited risk for bankruptcy at the moment.
KBR has a Altman-Z score of 2.53. This is comparable to the rest of the industry: KBR outperforms 47.13% of its industry peers.
The Debt to FCF ratio of KBR is 5.59, which is a neutral value as it means it would take KBR, 5.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.59, KBR is in line with its industry, outperforming 49.43% of the companies in the same industry.
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/WACC1.11
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.18 indicates that KBR should not have too much problems paying its short term obligations.
The Current ratio of KBR (1.18) is worse than 65.52% of its industry peers.
A Quick Ratio of 1.18 indicates that KBR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.18, KBR is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
KBR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.04%, which is quite impressive.
KBR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.80% yearly.
Looking at the last year, KBR shows a quite strong growth in Revenue. The Revenue has grown by 9.66% in the last year.
Measured over the past years, KBR shows a small growth in Revenue. The Revenue has been growing by 6.54% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.60 indicates a reasonable valuation of KBR.
Based on the Price/Earnings ratio, KBR is valued cheaper than 83.91% of the companies in the same industry.
KBR is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.60, which indicates a very decent valuation of KBR.
Based on the Price/Forward Earnings ratio, KBR is valued cheaply inside the industry as 83.91% of the companies are valued more expensively.
KBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than the industry average as 73.56% of the companies are valued more expensively.
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 | 12.07 | ||
| 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)0.73
PEG (5Y)0.78
EPS Next 2Y11.7%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.11, KBR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, KBR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
KBR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.84%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
44.3
-0.29 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.59%
Inst Owner Change-1.59%
Ins Owners1.11%
Ins Owner Change-0.44%
Market Cap5.63B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts75
Price Target56.61 (27.79%)
Short Float %3.67%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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 | 11.6 | ||
| Fwd PE | 10.6 | ||
| P/S | 0.7 | ||
| P/FCF | 12.07 | ||
| P/OCF | 10.97 | ||
| P/B | 3.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.81 |
EPS(TTM)3.82
EY8.62%
EPS(NY)4.18
Fwd EY9.43%
FCF(TTM)3.67
FCFY8.28%
OCF(TTM)4.04
OCFY9.12%
SpS63.47
BVpS11.53
TBVpS-15.36
PEG (NY)0.73
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
WACC7.48%
ROIC/WACC1.11
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.