KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
44.29 USD
-0.07 (-0.16%)
44.47 USD
+0.18 (+0.41%)
We assign a fundamental rating of 5 out of 10 to KBR. KBR was compared to 87 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year KBR was profitable.
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 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 78.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.28%, KBR is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KBR is below the industry average of 11.85%.
| 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 in the better half of the industry: KBR outperforms 60.92% of its industry peers.
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 56.32% of the companies in the same industry.
KBR's Operating Margin has improved in the last couple of years.
KBR's Gross Margin of 14.28% is on the low side compared to the rest of the industry. KBR is outperformed by 78.16% of its industry peers.
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
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
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.
KBR's Altman-Z score of 2.53 is in line compared to the rest of the industry. KBR outperforms 45.98% of its industry peers.
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 54.02% 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 in the lower half of the industry: KBR underperforms 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.05
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.18 indicates that KBR should not have too much problems paying its short term obligations.
With a Current 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.
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.
Looking at the Quick ratio, with a value of 1.18, KBR is doing worse than 65.52% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 14.80% on average over the past years. This is quite good.
Looking at the last year, KBR shows a quite strong growth in Revenue. The Revenue has grown by 9.66% in the last year.
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.
KBR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.62% yearly.
EPS Next Y16.18%
EPS Next 2Y11.54%
EPS Next 3Y9.88%
EPS Next 5Y16.31%
Revenue Next Year2.95%
Revenue Next 2Y3.52%
Revenue Next 3Y3.93%
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.
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 11.59, 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 27.25.
With a Price/Forward Earnings ratio of 10.63, the valuation of KBR can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 86.21% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KBR to the average of the S&P500 Index (23.98), we can say KBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than the industry average as 78.16% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 86.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.07 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
KBR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KBR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.72
PEG (5Y)0.78
EPS Next 2Y11.54%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.51%.
Compared to an average industry Dividend Yield of 1.48, KBR pays a bit more dividend than its industry peers.
KBR's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
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)N/A
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.
DP21.84%
EPS Next 2Y11.54%
EPS Next 3Y9.88%
44.29
-0.07 (-0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change0.1%
Ins Owners1.11%
Ins Owner Change0.12%
Market Cap5.62B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts76.92
Price Target55.08 (24.36%)
Short Float %3.68%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP21.84%
Div Incr Years5
Div Non Decr Years16
Ex-DateN/A
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)-2.7%
PT rev (3m)-10.99%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.65%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.63 | ||
| P/S | 0.7 | ||
| P/FCF | 12.07 | ||
| P/OCF | 10.96 | ||
| P/B | 3.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.75 |
EPS(TTM)3.82
EY8.62%
EPS(NY)4.17
Fwd EY9.41%
FCF(TTM)3.67
FCFY8.29%
OCF(TTM)4.04
OCFY9.12%
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
WACC7.91%
ROIC/WACC1.05
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 Y16.18%
EPS Next 2Y11.54%
EPS Next 3Y9.88%
EPS Next 5Y16.31%
Revenue 1Y (TTM)9.66%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%-0.82%
Revenue Next Year2.95%
Revenue Next 2Y3.52%
Revenue Next 3Y3.93%
Revenue Next 5Y6.62%
EBIT growth 1Y1.31%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.51%
EBIT Next 3Y13.81%
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 for 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.
What is the financial health of KBR INC (KBR) stock?
The financial health rating of KBR INC (KBR) is 3 / 10.
How sustainable is the dividend of KBR INC (KBR) stock?
The dividend rating of KBR INC (KBR) is 5 / 10 and the dividend payout ratio is 21.84%.