KBR INC (KBR) Fundamental Analysis & Valuation
NYSE:KBR • US48242W1062
40 USD
-0.13 (-0.32%)
At close: Mar 6, 2026
39.7405 USD
-0.26 (-0.65%)
After Hours: 3/6/2026, 8:04:00 PM
This KBR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, KBR scores 5 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
1. KBR Profitability Analysis
1.1 Basic Checks
- KBR had positive earnings in the past year.
- KBR had a positive operating cash flow in the past year.
- KBR had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years KBR had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of KBR (6.30%) is better than 65.91% of its industry peers.
- Looking at the Return On Equity, with a value of 27.61%, KBR belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
- The Return On Invested Capital of KBR (8.55%) is better than 61.36% of its industry peers.
- KBR had an Average Return On Invested Capital over the past 3 years of 8.72%. This is below the industry average of 12.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 27.61% | ||
| ROIC | 8.55% |
ROA(3y)2.39%
ROA(5y)2.2%
ROE(3y)11.42%
ROE(5y)9.51%
ROIC(3y)8.72%
ROIC(5y)8.28%
1.3 Margins
- KBR has a Profit Margin of 5.30%. This is in the better half of the industry: KBR outperforms 63.64% of its industry peers.
- KBR's Profit Margin has improved in the last couple of years.
- The Operating Margin of KBR (7.17%) is better than 60.23% of its industry peers.
- In the last couple of years the Operating Margin of KBR has grown nicely.
- Looking at the Gross Margin, with a value of 14.67%, KBR is doing worse than 78.41% of the companies in the same industry.
- KBR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.17% | ||
| PM (TTM) | 5.3% | ||
| GM | 14.67% |
OM growth 3Y5.48%
OM growth 5Y4.91%
PM growth 3Y22.79%
PM growth 5YN/A
GM growth 3Y5.4%
GM growth 5Y5.04%
2. KBR Health Analysis
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.
- Compared to 5 years ago, KBR has less shares outstanding
- The debt/assets ratio for KBR is higher compared to a year ago.
2.2 Solvency
- KBR has an Altman-Z score of 2.50. 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.
- With a Altman-Z score value of 2.50, KBR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- KBR has a debt to FCF ratio of 5.39. This is a neutral value as KBR would need 5.39 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.39, KBR is in line with its industry, outperforming 51.14% of the companies in the same industry.
- KBR has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
- KBR has a worse Debt to Equity ratio (1.69) than 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 5.39 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.14
WACC7.5%
2.3 Liquidity
- KBR has a Current Ratio of 1.22. 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 Current ratio, with a value of 1.22, KBR is doing worse than 62.50% of the companies in the same industry.
- KBR has a Quick Ratio of 1.22. This is a normal value and indicates that KBR is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.22, KBR is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. KBR Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 16.42% 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 17.65% yearly.
- KBR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.05%.
- The Revenue has been growing slightly by 6.19% on average over the past years.
EPS 1Y (TTM)16.42%
EPS 3Y12.76%
EPS 5Y17.65%
EPS Q2Q%8.79%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y5.86%
Revenue growth 5Y6.19%
Sales Q2Q%-11.17%
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 13.71% yearly.
- Based on estimates for the next years, KBR will show a small growth in Revenue. The Revenue will grow by 6.55% on average per year.
EPS Next Y5.66%
EPS Next 2Y5.7%
EPS Next 3Y8.78%
EPS Next 5Y13.71%
Revenue Next Year3.88%
Revenue Next 2Y4.22%
Revenue Next 3Y4.31%
Revenue Next 5Y6.55%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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. KBR Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.26, the valuation of KBR can be described as reasonable.
- Based on the Price/Earnings ratio, KBR is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.29. KBR is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.71, the valuation of KBR can be described as reasonable.
- Based on the Price/Forward Earnings ratio, KBR is valued cheaply inside the industry as 80.68% of the companies are valued more expensively.
- KBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than the industry average as 71.59% of the companies are valued more expensively.
- KBR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KBR is cheaper than 79.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.5 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- KBR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)0.58
EPS Next 2Y5.7%
EPS Next 3Y8.78%
5. KBR Dividend Analysis
5.1 Amount
- KBR has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.64, KBR pays a bit more dividend than its industry peers.
- KBR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
- The dividend of KBR is nicely growing with an annual growth rate of 14.80%!
- 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)14.8%
Div Incr Years5
Div Non Decr Years16
5.3 Sustainability
- KBR pays out 20.24% of its income as dividend. This is a sustainable payout ratio.
- KBR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.24%
EPS Next 2Y5.7%
EPS Next 3Y8.78%
KBR Fundamentals: All Metrics, Ratios and Statistics
40
-0.13 (-0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-04 2026-05-04
Inst Owners99.83%
Inst Owner Change0%
Ins Owners1.11%
Ins Owner Change-0.01%
Market Cap5.06B
Revenue(TTM)7.82B
Net Income(TTM)415.00M
Analysts76.92
Price Target53.81 (34.53%)
Short Float %4.54%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend0.65
Dividend Growth(5Y)14.8%
DP20.24%
Div Incr Years5
Div Non Decr Years16
Ex-Date03-13 2026-03-13 (0.165)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.51%
Min EPS beat(2)3.3%
Max EPS beat(2)5.73%
EPS beat(4)4
Avg EPS beat(4)5.88%
Min EPS beat(4)1.92%
Max EPS beat(4)12.56%
EPS beat(8)7
Avg EPS beat(8)5.67%
EPS beat(12)9
Avg EPS beat(12)5.06%
EPS beat(16)13
Avg EPS beat(16)6.4%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-3.11%
Max Revenue beat(2)-2.03%
Revenue beat(4)0
Avg Revenue beat(4)-3.51%
Min Revenue beat(4)-7.14%
Max Revenue beat(4)-1.77%
Revenue beat(8)2
Avg Revenue beat(8)-1.42%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)3
Avg Revenue beat(16)-1.44%
PT rev (1m)-0.94%
PT rev (3m)-3.84%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.65 | ||
| P/FCF | 10.5 | ||
| P/OCF | 9.65 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.82 |
EPS(TTM)3.9
EY9.75%
EPS(NY)4.12
Fwd EY10.3%
FCF(TTM)3.81
FCFY9.53%
OCF(TTM)4.14
OCFY10.36%
SpS61.86
BVpS11.88
TBVpS-15.03
PEG (NY)1.81
PEG (5Y)0.58
Graham Number32.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 27.61% | ||
| ROCE | 11.46% | ||
| ROIC | 8.55% | ||
| ROICexc | 9.52% | ||
| ROICexgc | 42.19% | ||
| OM | 7.17% | ||
| PM (TTM) | 5.3% | ||
| GM | 14.67% | ||
| FCFM | 6.16% |
ROA(3y)2.39%
ROA(5y)2.2%
ROE(3y)11.42%
ROE(5y)9.51%
ROIC(3y)8.72%
ROIC(5y)8.28%
ROICexc(3y)9.51%
ROICexc(5y)9.08%
ROICexgc(3y)38.84%
ROICexgc(5y)38.24%
ROCE(3y)11.69%
ROCE(5y)11.1%
ROICexgc growth 3Y-4.33%
ROICexgc growth 5Y18.84%
ROICexc growth 3Y2.05%
ROICexc growth 5Y8.29%
OM growth 3Y5.48%
OM growth 5Y4.91%
PM growth 3Y22.79%
PM growth 5YN/A
GM growth 3Y5.4%
GM growth 5Y5.04%
F-Score8
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 5.39 | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 24.85% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 3.98 | ||
| Cash Conversion | 71.78% | ||
| Profit Quality | 116.15% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.5 |
F-Score8
WACC7.5%
ROIC/WACC1.14
Cap/Depr(3y)34.05%
Cap/Depr(5y)35.86%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.42%
EPS 3Y12.76%
EPS 5Y17.65%
EPS Q2Q%8.79%
EPS Next Y5.66%
EPS Next 2Y5.7%
EPS Next 3Y8.78%
EPS Next 5Y13.71%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y5.86%
Revenue growth 5Y6.19%
Sales Q2Q%-11.17%
Revenue Next Year3.88%
Revenue Next 2Y4.22%
Revenue Next 3Y4.31%
Revenue Next 5Y6.55%
EBIT growth 1Y3.51%
EBIT growth 3Y11.66%
EBIT growth 5Y11.4%
EBIT Next Year23.99%
EBIT Next 3Y9.76%
EBIT Next 5Y10.23%
FCF growth 1Y25.19%
FCF growth 3Y14.04%
FCF growth 5Y6.79%
OCF growth 1Y19.91%
OCF growth 3Y9.79%
OCF growth 5Y7.38%
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 6 / 10 to KBR INC (KBR). This can be considered as Fairly Valued.
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 6 / 10 and the dividend payout ratio is 20.24%.