KBR INC (KBR) Stock Fundamental Analysis
NYSE:KBR - New York Stock Exchange, Inc. - US48242W1062 - Common Stock - Currency: USD
KBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 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 has a decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years KBR had a positive operating cash flow.
1.2 Ratios
KBR has a Return On Assets of 5.63%. This is in the better half of the industry: KBR outperforms 63.86% of its industry peers.
KBR has a Return On Equity of 25.81%. This is in the better half of the industry: KBR outperforms 75.90% of its industry peers.
KBR has a Return On Invested Capital (8.28%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KBR is significantly below the industry average of 13.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 25.81% | ||
| 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 better Profit Margin (4.84%) than 62.65% of its industry peers.
KBR's Profit Margin has improved in the last couple of years.
KBR's Operating Margin of 7.00% is fine compared to the rest of the industry. KBR outperforms 62.65% of its industry peers.
In the last couple of years the Operating Margin of KBR has grown nicely.
The Gross Margin of KBR (14.25%) is worse than 83.13% of its industry peers.
In the last couple of years the Gross Margin of KBR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7% | ||
| PM (TTM) | 4.84% | ||
| GM | 14.25% |
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.
KBR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KBR is higher compared to a year ago.
2.2 Solvency
KBR has an Altman-Z score of 2.49. 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 2.49. This is comparable to the rest of the industry: KBR outperforms 49.40% of its industry peers.
KBR has a debt to FCF ratio of 6.67. This is a slightly negative value and a sign of low solvency as KBR would need 6.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.67, KBR is in line with its industry, outperforming 49.40% of the companies in the same industry.
KBR has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
KBR has a worse Debt to Equity ratio (1.74) than 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | 2.49 |
ROIC/WACC1
WACC8.3%
2.3 Liquidity
A Current Ratio of 1.05 indicates that KBR should not have too much problems paying its short term obligations.
KBR has a Current ratio of 1.05. This is in the lower half of the industry: KBR underperforms 69.88% of its industry peers.
KBR has a Quick Ratio of 1.05. 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 1.05 is on the low side compared to the rest of the industry. KBR is outperformed by 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
KBR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.54%, which is quite good.
KBR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.80% yearly.
KBR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.30%.
KBR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.54% yearly.
EPS 1Y (TTM)17.54%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%31.88%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%22.66%
3.2 Future
Based on estimates for the next years, KBR will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.50% on average per year.
Based on estimates for the next years, KBR will show a quite strong growth in Revenue. The Revenue will grow by 11.14% on average per year.
EPS Next Y14.99%
EPS Next 2Y14.24%
EPS Next 3Y11.31%
EPS Next 5Y17.5%
Revenue Next Year16.45%
Revenue Next 2Y12.81%
Revenue Next 3Y14.1%
Revenue Next 5Y11.14%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.08, which indicates a correct valuation of KBR.
Based on the Price/Earnings ratio, KBR is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
KBR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
KBR is valuated correctly with a Price/Forward Earnings ratio of 13.11.
KBR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KBR is cheaper than 73.49% of the companies in the same industry.
KBR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KBR indicates a somewhat cheap valuation: KBR is cheaper than 62.65% of the companies listed in the same industry.
KBR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KBR is cheaper than 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.02 | ||
| EV/EBITDA | 12.57 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KBR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.01
PEG (5Y)1.02
EPS Next 2Y14.24%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, KBR has a reasonable but not impressive dividend return.
KBR's Dividend Yield is a higher than the industry average which is at 2.41.
With a Dividend Yield of 1.31, KBR pays less dividend than the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
21.07% of the earnings are spent on dividend by KBR. This is a low number and sustainable payout ratio.
KBR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.07%
EPS Next 2Y14.24%
EPS Next 3Y11.31%
50.51
+0.21 (+0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.79%
Inst Owner Change-0.1%
Ins Owners1.12%
Ins Owner Change2.91%
Market Cap6.55B
Analysts83.33
Price Target73.44 (45.4%)
Short Float %1.87%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.53
Dividend Growth(5Y)11.11%
DP21.07%
Div Incr Years5
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.78%
Min EPS beat(2)-0.8%
Max EPS beat(2)10.36%
EPS beat(4)3
Avg EPS beat(4)5.46%
Min EPS beat(4)-0.8%
Max EPS beat(4)10.36%
EPS beat(8)5
Avg EPS beat(8)4.65%
EPS beat(12)9
Avg EPS beat(12)6.57%
EPS beat(16)12
Avg EPS beat(16)6.73%
Revenue beat(2)1
Avg Revenue beat(2)1.87%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)5.1%
Revenue beat(4)2
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)5.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.11%
Revenue beat(12)3
Avg Revenue beat(12)-0.76%
Revenue beat(16)5
Avg Revenue beat(16)0.61%
PT rev (1m)-1.71%
PT rev (3m)-7.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)-1.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.11 | ||
| P/S | 0.85 | ||
| P/FCF | 17.02 | ||
| P/OCF | 14.18 | ||
| P/B | 4.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.57 |
EPS(TTM)3.35
EY6.63%
EPS(NY)3.85
Fwd EY7.63%
FCF(TTM)2.97
FCFY5.88%
OCF(TTM)3.56
OCFY7.05%
SpS59.67
BVpS11.2
TBVpS-14.95
PEG (NY)1.01
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 25.81% | ||
| ROCE | 11.1% | ||
| ROIC | 8.28% | ||
| ROICexc | 8.92% | ||
| ROICexgc | 35.51% | ||
| OM | 7% | ||
| PM (TTM) | 4.84% | ||
| GM | 14.25% | ||
| FCFM | 4.97% |
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%
ROICexcg growth 3Y11.5%
ROICexcg 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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 6.67 | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 49.36% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 4.37 | ||
| Cash Conversion | 66.19% | ||
| Profit Quality | 102.67% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.49 |
F-Score7
WACC8.3%
ROIC/WACC1
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)17.54%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%31.88%
EPS Next Y14.99%
EPS Next 2Y14.24%
EPS Next 3Y11.31%
EPS Next 5Y17.5%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%22.66%
Revenue Next Year16.45%
Revenue Next 2Y12.81%
Revenue Next 3Y14.1%
Revenue Next 5Y11.14%
EBIT growth 1Y11.75%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.74%
EBIT Next 3Y14.17%
EBIT Next 5Y15.5%
FCF growth 1Y53.39%
FCF growth 3Y16.9%
FCF growth 5Y10.28%
OCF growth 1Y39.58%
OCF growth 3Y18.45%
OCF growth 5Y12.53%