KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
43.48 USD
-0.54 (-1.23%)
43.48 USD
0 (0%)
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. 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.
In multiple years KBR reported negative net income over the last 5 years.
KBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.72%, KBR is doing good in the industry, outperforming 63.22% of the companies in the same industry.
The Return On Equity of KBR (25.96%) is better than 77.01% of its industry peers.
KBR's Return On Invested Capital of 8.28% is in line compared 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 12.13%.
| 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.
KBR has a Operating Margin (6.72%) which is comparable to the rest of the industry.
KBR's Operating Margin has improved in the last couple of years.
KBR has a Gross Margin of 14.28%. This is amonst the worse of the industry: KBR underperforms 80.46% of its industry peers.
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
KBR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for KBR has been reduced compared to 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 2.52 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KBR (2.52) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of KBR (5.59) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.75 is on the high side and indicates that KBR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.75, KBR is not doing good in the industry: 80.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.1
WACC7.54%
2.3 Liquidity
KBR has a Current 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.
The Current ratio of KBR (1.18) is worse than 66.67% of its industry peers.
A Quick Ratio of 1.18 indicates that KBR should not have too much problems paying 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 66.67% 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.
Measured over the past years, KBR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.80% on average per year.
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
Based on estimates for the next years, KBR will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.31% on average per year.
The Revenue is expected to grow by 6.62% on average over the next years.
EPS Next Y16.29%
EPS Next 2Y11.14%
EPS Next 3Y10.45%
EPS Next 5Y16.31%
Revenue Next Year2.99%
Revenue Next 2Y3.68%
Revenue Next 3Y3.95%
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
The Price/Earnings ratio is 11.38, which indicates a very decent 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 83.91% of the companies listed in the same industry.
KBR is valuated cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.51 indicates a reasonable 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.
When comparing the Price/Forward Earnings ratio of KBR to the average of the S&P500 Index (23.78), we can say KBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than the industry average as 74.71% 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 82.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.85 | ||
| EV/EBITDA | 10.61 |
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.
PEG (NY)0.7
PEG (5Y)0.77
EPS Next 2Y11.14%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.84, KBR pays a bit more dividend than its industry peers.
KBR's Dividend Yield is slightly below the S&P500 average, which is at 1.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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
21.84% of the earnings are spent on dividend by KBR. This is a low number and sustainable payout ratio.
The dividend of KBR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.84%
EPS Next 2Y11.14%
EPS Next 3Y10.45%
43.48
-0.54 (-1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.59%
Inst Owner Change-1.58%
Ins Owners1.11%
Ins Owner Change-0.44%
Market Cap5.52B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts75
Price Target56.61 (30.2%)
Short Float %3.67%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)-7.24%
PT rev (3m)-8.52%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)-4.63%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)2.34%
Revenue NQ rev (3m)-6.65%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 10.51 | ||
| P/S | 0.69 | ||
| P/FCF | 11.85 | ||
| P/OCF | 10.76 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.61 |
EPS(TTM)3.82
EY8.79%
EPS(NY)4.14
Fwd EY9.52%
FCF(TTM)3.67
FCFY8.44%
OCF(TTM)4.04
OCFY9.29%
SpS63.47
BVpS11.53
TBVpS-15.36
PEG (NY)0.7
PEG (5Y)0.77
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 | 2.52 |
F-Score8
WACC7.54%
ROIC/WACC1.1
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 Y16.29%
EPS Next 2Y11.14%
EPS Next 3Y10.45%
EPS Next 5Y16.31%
Revenue 1Y (TTM)9.66%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%-0.82%
Revenue Next Year2.99%
Revenue Next 2Y3.68%
Revenue Next 3Y3.95%
Revenue Next 5Y6.62%
EBIT growth 1Y1.31%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.59%
EBIT Next 3Y14.67%
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 16.29% in the next year.