KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
44.37 USD
-0.07 (-0.16%)
44.37 USD
0 (0%)
Overall KBR gets a fundamental rating of 5 out of 10. We evaluated KBR against 88 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on KBR.
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.
- 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
- KBR has a Return On Assets of 5.72%. This is in the better half of the industry: KBR outperforms 63.64% of its industry peers.
- The Return On Equity of KBR (25.96%) is better than 78.41% of its industry peers.
- The Return On Invested Capital of KBR (8.28%) is better than 62.50% of its industry peers.
- KBR had an Average Return On Invested Capital over the past 3 years of 8.52%. This 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 61.36% of its industry peers.
- KBR's Profit Margin has improved in the last couple of years.
- KBR has a Operating Margin (6.72%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of KBR has grown nicely.
- KBR has a worse Gross Margin (14.28%) than 77.27% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KBR is still creating some value.
- Compared to 1 year ago, KBR has less shares outstanding
- Compared to 5 years ago, KBR has less shares outstanding
- Compared to 1 year ago, KBR has a worse debt to assets ratio.
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 has a Altman-Z score (2.53) which 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.
- The Debt to Equity ratio of KBR (1.75) is worse than 78.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.05
WACC7.89%
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 64.77% 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 64.77% of its industry peers.
| 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.
- KBR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.66%.
- 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
- KBR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.31% yearly.
- 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 Year2.97%
Revenue Next 2Y3.52%
Revenue Next 3Y4.03%
Revenue Next 5Y6.62%
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
- KBR is valuated reasonably with a Price/Earnings ratio of 11.62.
- 82.95% of the companies in the same industry are more expensive than KBR, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. KBR is valued rather cheaply when compared to this.
- KBR is valuated reasonably with a Price/Forward Earnings ratio of 10.65.
- KBR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KBR is cheaper than 85.23% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of KBR to the average of the S&P500 Index (24.26), we can say KBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than 78.41% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 84.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.09 | ||
| EV/EBITDA | 10.78 |
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)0.72
PEG (5Y)0.78
EPS Next 2Y11.54%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
- KBR has a Yearly Dividend Yield of 1.49%.
- KBR's Dividend Yield is a higher than the industry average which is at 1.41.
- Compared to an average S&P500 Dividend Yield of 1.82, KBR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
- KBR has paid a dividend for at least 10 years, which is 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)N/A
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.
DP21.84%
EPS Next 2Y11.54%
EPS Next 3Y9.88%
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%.