KBR INC (KBR) Stock Fundamental Analysis
USA - NYSE:KBR - US48242W1062 - Common Stock
42.39 USD
-0.23 (-0.54%)
42.39 USD
0 (0%)
KBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 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 may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
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's Return On Assets of 5.72% is fine compared to the rest of the industry. KBR outperforms 62.79% of its industry peers.
KBR's Return On Equity of 25.96% is fine compared to the rest of the industry. KBR outperforms 79.07% of its industry peers.
With a Return On Invested Capital value of 8.28%, KBR perfoms like the industry average, outperforming 59.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KBR is significantly below the industry average of 22.50%.
| 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 better Profit Margin (4.71%) than 60.47% of its industry peers.
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 58.14% of its industry peers.
KBR's Operating Margin has improved in the last couple of years.
KBR has a Gross Margin of 14.28%. This is in the lower half of the industry: KBR underperforms 79.07% 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.
KBR has less shares outstanding than it did 1 year ago.
KBR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KBR has a worse debt to assets ratio.
2.2 Solvency
KBR has an Altman-Z score of 2.51. 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.
KBR has a Altman-Z score of 2.51. This is comparable to the rest of the industry: KBR outperforms 46.51% of its industry peers.
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.
KBR's Debt to FCF ratio of 5.59 is in line compared to the rest of the industry. KBR outperforms 51.16% of its industry peers.
A Debt/Equity ratio of 1.75 is on the high side and indicates that KBR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.75, KBR is doing worse than 80.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.11
WACC7.43%
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.
Looking at the Current ratio, with a value of 1.18, KBR is doing worse than 62.79% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that KBR should not have too much problems paying its short term obligations.
KBR has a Quick ratio of 1.18. This is in the lower half of the industry: KBR underperforms 62.79% 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.
KBR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.54% yearly.
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
The Earnings Per Share is expected to grow by 16.31% 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 6.62% 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
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
Based on the Price/Earnings ratio of 11.10, the valuation of KBR can be described as reasonable.
Based on the Price/Earnings ratio, KBR is valued cheaper than 84.88% of the companies in the same industry.
KBR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.28.
KBR is valuated reasonably with a Price/Forward Earnings ratio of 10.14.
KBR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KBR is cheaper than 82.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, KBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than the industry average as 75.58% of the companies are valued more expensively.
79.07% 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 | 11.72 | ||
| EV/EBITDA | 10.53 |
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)0.69
PEG (5Y)0.75
EPS Next 2Y11.7%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, KBR has a reasonable but not impressive dividend return.
KBR's Dividend Yield is a higher than the industry average which is at 4.40.
KBR's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
On average, the dividend of KBR grows each year by 11.11%, which is quite nice.
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 2Y11.7%
EPS Next 3Y11.31%
42.39
-0.23 (-0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-1.66%
Ins Owners1.09%
Ins Owner Change-0.33%
Market Cap5.46B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts76.36
Price Target61.03 (43.97%)
Short Float %3.58%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)-1.37%
PT rev (3m)-5.28%
EPS NQ rev (1m)-5.64%
EPS NQ rev (3m)-5.86%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)-8.78%
Revenue NQ rev (3m)-10.77%
Revenue NY rev (1m)-1.27%
Revenue NY rev (3m)-7.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 10.14 | ||
| P/S | 0.68 | ||
| P/FCF | 11.72 | ||
| P/OCF | 10.65 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.53 |
EPS(TTM)3.82
EY9.01%
EPS(NY)4.18
Fwd EY9.86%
FCF(TTM)3.62
FCFY8.53%
OCF(TTM)3.98
OCFY9.39%
SpS62.56
BVpS11.36
TBVpS-15.14
PEG (NY)0.69
PEG (5Y)0.75
Graham Number31.25
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 | 2.51 |
F-Score8
WACC7.43%
ROIC/WACC1.11
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 7 / 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.