KBR INC (KBR) Stock Fundamental Analysis
USA - NYSE:KBR - US48242W1062 - Common Stock
48.85 USD
+0.05 (+0.1%)
Taking everything into account, KBR scores 5 out of 10 in our fundamental rating. KBR was compared to 82 industry peers in the Professional Services industry. KBR has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on KBR. 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.
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 5.37%. This is in the better half of the industry: KBR outperforms 63.41% of its industry peers.
KBR's Return On Equity of 24.55% is fine compared to the rest of the industry. KBR outperforms 79.27% of its industry peers.
KBR has a Return On Invested Capital (8.56%) which is in line with 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 12.76%.
The last Return On Invested Capital (8.56%) for KBR is above the 3 year average (8.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 24.55% | ||
| ROIC | 8.56% |
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
Looking at the Profit Margin, with a value of 4.52%, KBR is in line with its industry, outperforming 59.76% of the companies in the same industry.
In the last couple of years the Profit Margin of KBR has grown nicely.
With a Operating Margin value of 7.02%, KBR perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
In the last couple of years the Operating Margin of KBR has grown nicely.
KBR has a worse Gross Margin (14.51%) than 80.49% of its industry peers.
In the last couple of years the Gross Margin of KBR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.02% | ||
| PM (TTM) | 4.52% | ||
| GM | 14.51% |
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.
Compared to 1 year ago, KBR has less shares outstanding
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 2.53 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.
KBR has a debt to FCF ratio of 6.22. This is a slightly negative value and a sign of low solvency as KBR would need 6.22 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.22, KBR is in line with its industry, outperforming 43.90% of the companies in the same industry.
A Debt/Equity ratio of 1.73 is on the high side and indicates that KBR has dependencies on debt financing.
KBR has a Debt to Equity ratio of 1.73. This is amonst the worse of the industry: KBR underperforms 81.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.12
WACC7.63%
2.3 Liquidity
KBR has a Current Ratio of 1.13. 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 Current ratio value of 1.13, KBR is not doing good in the industry: 64.63% of the companies in the same industry are doing better.
A Quick Ratio of 1.13 indicates that KBR should not have too much problems paying its short term obligations.
KBR has a worse Quick ratio (1.13) than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
KBR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.74%, which is quite good.
The Earnings Per Share has been growing by 14.80% on average over the past years. This is quite good.
The Revenue has grown by 12.59% in the past year. This is quite good.
Measured over the past years, KBR shows a small growth in Revenue. The Revenue has been growing by 6.54% on average per year.
EPS 1Y (TTM)19.74%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%9.64%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%5.23%
3.2 Future
The Earnings Per Share is expected to grow by 15.71% on average over the next years. This is quite good.
Based on estimates for the next years, KBR will show a small growth in Revenue. The Revenue will grow by 6.54% on average per year.
EPS Next Y15.88%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
EPS Next 5Y15.71%
Revenue Next Year5.38%
Revenue Next 2Y5.81%
Revenue Next 3Y5.53%
Revenue Next 5Y6.54%
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
The Price/Earnings ratio is 13.42, which indicates a correct valuation of KBR.
81.71% of the companies in the same industry are more expensive than KBR, based on the Price/Earnings ratio.
KBR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 11.41, the valuation of KBR can be described as reasonable.
81.71% of the companies in the same industry are more expensive than KBR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, KBR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
70.73% of the companies in the same industry are more expensive than KBR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBR indicates a somewhat cheap valuation: KBR is cheaper than 71.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.99 | ||
| EV/EBITDA | 11.52 |
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.
The decent profitability rating of KBR may justify a higher PE ratio.
A more expensive valuation may be justified as KBR's earnings are expected to grow with 13.01% in the coming years.
PEG (NY)0.84
PEG (5Y)0.91
EPS Next 2Y13.05%
EPS Next 3Y13.01%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.33%.
Compared to an average industry Dividend Yield of 2.07, KBR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.33, KBR pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of KBR is nicely growing with an annual growth rate of 11.11%!
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 22.19% of its income as dividend. This is a sustainable payout ratio.
The dividend of KBR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.19%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
NYSE:KBR (9/18/2025, 9:46:48 AM)
48.85
+0.05 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.64%
Inst Owner Change0.07%
Ins Owners1.08%
Ins Owner Change-0.25%
Market Cap6.29B
Analysts76.36
Price Target61.88 (26.67%)
Short Float %3.08%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend0.53
Dividend Growth(5Y)11.11%
DP22.19%
Div Incr Years5
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.24%
Min EPS beat(2)1.92%
Max EPS beat(2)12.56%
EPS beat(4)3
Avg EPS beat(4)6.01%
Min EPS beat(4)-0.8%
Max EPS beat(4)12.56%
EPS beat(8)5
Avg EPS beat(8)4.47%
EPS beat(12)9
Avg EPS beat(12)5.89%
EPS beat(16)13
Avg EPS beat(16)6.75%
Revenue beat(2)0
Avg Revenue beat(2)-4.45%
Min Revenue beat(2)-7.14%
Max Revenue beat(2)-1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-7.14%
Max Revenue beat(4)5.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.11%
PT rev (1m)-3.96%
PT rev (3m)-8.94%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)0.61%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)-11.08%
Revenue NY rev (1m)-6.16%
Revenue NY rev (3m)-8.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 11.41 | ||
| P/S | 0.78 | ||
| P/FCF | 14.99 | ||
| P/OCF | 13.17 | ||
| P/B | 4.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.52 |
EPS(TTM)3.64
EY7.45%
EPS(NY)4.28
Fwd EY8.77%
FCF(TTM)3.26
FCFY6.67%
OCF(TTM)3.71
OCFY7.59%
SpS62.68
BVpS11.54
TBVpS-15.27
PEG (NY)0.84
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 24.55% | ||
| ROCE | 11.49% | ||
| ROIC | 8.56% | ||
| ROICexc | 9.33% | ||
| ROICexgc | 39.18% | ||
| OM | 7.02% | ||
| PM (TTM) | 4.52% | ||
| GM | 14.51% | ||
| FCFM | 5.2% |
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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 6.22 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 33.92% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.77% | ||
| Profit Quality | 115.07% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.53 |
F-Score7
WACC7.63%
ROIC/WACC1.12
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)19.74%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%9.64%
EPS Next Y15.88%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
EPS Next 5Y15.71%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%5.23%
Revenue Next Year5.38%
Revenue Next 2Y5.81%
Revenue Next 3Y5.53%
Revenue Next 5Y6.54%
EBIT growth 1Y12.5%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.37%
EBIT Next 3Y16.61%
EBIT Next 5Y12.77%
FCF growth 1Y10.53%
FCF growth 3Y16.9%
FCF growth 5Y10.28%
OCF growth 1Y1.7%
OCF growth 3Y18.45%
OCF growth 5Y12.53%