KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
41.22 USD
+0.45 (+1.1%)
41.22 USD
0 (0%)
KBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on KBR. 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's Return On Assets of 5.72% is fine compared to the rest of the industry. KBR outperforms 63.22% of its industry peers.
KBR has a Return On Equity of 25.96%. This is in the better half of the industry: KBR outperforms 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 12.15%.
| 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
With a Profit Margin value of 4.71%, KBR perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
In the last couple of years the Profit Margin of KBR has grown nicely.
KBR's Operating Margin of 6.72% is in line compared to the rest of the industry. KBR outperforms 57.47% of its industry peers.
KBR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 14.28%, KBR is not doing good in the industry: 80.46% of the companies in the same industry are doing better.
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.
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.
The debt/assets ratio for KBR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.48 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
KBR has a Altman-Z score (2.48) 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.
Looking at the Debt to FCF ratio, with a value of 5.59, KBR is in line with its industry, outperforming 49.43% of the companies in the same industry.
A Debt/Equity ratio of 1.75 is on the high side and indicates that KBR has dependencies on debt financing.
KBR's Debt to Equity ratio of 1.75 is on the low side compared to the rest of the industry. KBR is outperformed by 81.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.13
WACC7.32%
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.
KBR's Current ratio of 1.18 is on the low side compared to the rest of the industry. KBR is outperformed by 65.52% 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 has a worse Quick ratio (1.18) than 65.52% 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.
The Revenue has grown by 9.66% 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)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.
Based on estimates for the next years, KBR will show a small growth in Revenue. The Revenue will grow by 6.62% on average per year.
EPS Next Y15.99%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
EPS Next 5Y16.31%
Revenue Next Year4.04%
Revenue Next 2Y4.44%
Revenue Next 3Y4.47%
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.
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 10.79 indicates a reasonable valuation of KBR.
85.06% of the companies in the same industry are more expensive than KBR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, KBR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.86, the valuation of KBR can be described as reasonable.
KBR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KBR is cheaper than 82.76% of the companies in the same industry.
KBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than 73.56% of the companies in the same industry.
82.76% of the companies in the same industry are more expensive than KBR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 10.21 |
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.
PEG (NY)0.67
PEG (5Y)0.73
EPS Next 2Y11.7%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
KBR's Dividend Yield is a higher than the industry average which is at 4.07.
Compared to the average S&P500 Dividend Yield of 2.32, KBR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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
KBR pays out 21.84% of its income as dividend. This is a sustainable payout ratio.
KBR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.84%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
41.22
+0.45 (+1.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-1.59%
Ins Owners1.09%
Ins Owner Change-0.44%
Market Cap5.23B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts76.36
Price Target55.95 (35.74%)
Short Float %3.51%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)-9.58%
PT rev (3m)-9.58%
EPS NQ rev (1m)-4.71%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-6.5%
Revenue NQ rev (3m)-6.55%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 9.86 | ||
| P/S | 0.65 | ||
| P/FCF | 11.23 | ||
| P/OCF | 10.2 | ||
| P/B | 3.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.21 |
EPS(TTM)3.82
EY9.27%
EPS(NY)4.18
Fwd EY10.14%
FCF(TTM)3.67
FCFY8.9%
OCF(TTM)4.04
OCFY9.8%
SpS63.47
BVpS11.53
TBVpS-15.36
PEG (NY)0.67
PEG (5Y)0.73
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 | 2.48 |
F-Score8
WACC7.32%
ROIC/WACC1.13
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 Y15.99%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
EPS Next 5Y16.31%
Revenue 1Y (TTM)9.66%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%-0.82%
Revenue Next Year4.04%
Revenue Next 2Y4.44%
Revenue Next 3Y4.47%
Revenue Next 5Y6.62%
EBIT growth 1Y1.31%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.21%
EBIT Next 3Y16.12%
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 15.99% in the next year.