KBR INC (KBR) Stock Fundamental Analysis
NYSE:KBR - New York Stock Exchange, Inc. - US48242W1062 - Common Stock - Currency: USD
Overall KBR gets a fundamental rating of 5 out of 10. We evaluated KBR against 81 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally KBR also has an excellent dividend rating.
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.
Each year in the past 5 years KBR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.81%, KBR is in the better half of the industry, outperforming 64.20% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.09%, KBR belongs to the top of the industry, outperforming 80.25% of the companies in the same industry.
KBR has a better Return On Invested Capital (8.44%) than 61.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KBR is below the industry average of 12.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 28.09% | ||
| ROIC | 8.44% |
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 (4.99%) is better than 62.96% of its industry peers.
In the last couple of years the Profit Margin of KBR has grown nicely.
The Operating Margin of KBR (7.08%) is better than 61.73% of its industry peers.
KBR's Operating Margin has improved in the last couple of years.
KBR's Gross Margin of 14.45% is on the low side compared to the rest of the industry. KBR is outperformed by 80.25% of its industry peers.
KBR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.08% | ||
| PM (TTM) | 4.99% | ||
| GM | 14.45% |
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.
KBR has less shares outstanding than it did 1 year ago.
KBR has less shares outstanding than it did 5 years ago.
KBR has a worse debt/assets ratio than last year.
2.2 Solvency
KBR has an Altman-Z score of 2.45. 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.
The Altman-Z score of KBR (2.45) is comparable to the rest of the industry.
KBR has a debt to FCF ratio of 6.73. This is a slightly negative value and a sign of low solvency as KBR would need 6.73 years to pay back of all of its debts.
KBR has a Debt to FCF ratio (6.73) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.91 is on the high side and indicates that KBR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.91, KBR is not doing good in the industry: 83.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.03
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.11 indicates that KBR should not have too much problems paying its short term obligations.
KBR's Current ratio of 1.11 is on the low side compared to the rest of the industry. KBR is outperformed by 66.67% of its industry peers.
KBR has a Quick Ratio of 1.11. This is a normal value and indicates that KBR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KBR (1.11) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.68% over the past year.
KBR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.80% yearly.
The Revenue has grown by 12.84% 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)20.68%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%27.27%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%13.04%
3.2 Future
The Earnings Per Share is expected to grow by 15.84% 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 7.78% yearly.
EPS Next Y16.08%
EPS Next 2Y13.46%
EPS Next 3Y11.67%
EPS Next 5Y15.84%
Revenue Next Year14.9%
Revenue Next 2Y11.69%
Revenue Next 3Y12.77%
Revenue Next 5Y7.78%
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.
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 13.33 indicates a correct valuation of KBR.
Compared to the rest of the industry, the Price/Earnings ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 80.25% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. KBR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.00 indicates a reasonable valuation of KBR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 81.48% of the companies listed in the same industry.
KBR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than 69.14% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBR indicates a somewhat cheap valuation: KBR is cheaper than 70.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.09 | ||
| EV/EBITDA | 11.65 |
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.
PEG (NY)0.83
PEG (5Y)0.9
EPS Next 2Y13.46%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.35%.
KBR's Dividend Yield is a higher than the industry average which is at 2.12.
Compared to an average S&P500 Dividend Yield of 2.42, KBR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of KBR grows each year by 11.11%, which is quite nice.
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
20.35% 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.
DP20.35%
EPS Next 2Y13.46%
EPS Next 3Y11.67%
47.45
-0.7 (-1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change-1.66%
Ins Owners1.1%
Ins Owner Change2.87%
Market Cap6.16B
Analysts81.67
Price Target67.96 (43.22%)
Short Float %3.6%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend0.53
Dividend Growth(5Y)11.11%
DP20.35%
Div Incr Years5
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.46%
Min EPS beat(2)10.36%
Max EPS beat(2)12.56%
EPS beat(4)3
Avg EPS beat(4)6.46%
Min EPS beat(4)-0.8%
Max EPS beat(4)12.56%
EPS beat(8)5
Avg EPS beat(8)4.48%
EPS beat(12)9
Avg EPS beat(12)7.04%
EPS beat(16)13
Avg EPS beat(16)7.58%
Revenue beat(2)1
Avg Revenue beat(2)1.67%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)5.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)5.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)3
Avg Revenue beat(12)-0.8%
Revenue beat(16)5
Avg Revenue beat(16)0.56%
PT rev (1m)0.76%
PT rev (3m)-7.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11 | ||
| P/S | 0.77 | ||
| P/FCF | 15.09 | ||
| P/OCF | 13.13 | ||
| P/B | 4.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.65 |
EPS(TTM)3.56
EY7.5%
EPS(NY)4.31
Fwd EY9.09%
FCF(TTM)3.14
FCFY6.63%
OCF(TTM)3.61
OCFY7.62%
SpS61.5
BVpS10.92
TBVpS-15.25
PEG (NY)0.83
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 28.09% | ||
| ROCE | 11.32% | ||
| ROIC | 8.44% | ||
| ROICexc | 9.26% | ||
| ROICexgc | 36.57% | ||
| OM | 7.08% | ||
| PM (TTM) | 4.99% | ||
| GM | 14.45% | ||
| FCFM | 5.11% |
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 Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 6.73 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 37.89% | ||
| Cap/Sales | 0.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.6% | ||
| Profit Quality | 102.51% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.45 |
F-Score7
WACC8.18%
ROIC/WACC1.03
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)20.68%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%27.27%
EPS Next Y16.08%
EPS Next 2Y13.46%
EPS Next 3Y11.67%
EPS Next 5Y15.84%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%13.04%
Revenue Next Year14.9%
Revenue Next 2Y11.69%
Revenue Next 3Y12.77%
Revenue Next 5Y7.78%
EBIT growth 1Y14.37%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.45%
EBIT Next 3Y13.7%
EBIT Next 5Y13.11%
FCF growth 1Y58.14%
FCF growth 3Y16.9%
FCF growth 5Y10.28%
OCF growth 1Y37.13%
OCF growth 3Y18.45%
OCF growth 5Y12.53%