KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
42.545 USD
+0.77 (+1.86%)
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. 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.
Each year in the past 5 years KBR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.72%, KBR is doing good in the industry, outperforming 63.22% of the companies in the same industry.
KBR has a better Return On Equity (25.96%) than 77.01% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.28%, KBR is in line with its industry, outperforming 58.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
KBR has a Profit Margin of 4.71%. This is comparable to the rest of the industry: KBR outperforms 59.77% of its industry peers.
In the last couple of years the Profit Margin of KBR has grown nicely.
The Operating Margin of KBR (6.72%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KBR has grown nicely.
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.
KBR's Gross Margin has improved in the last couple of years.
| 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
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
An Altman-Z score of 2.49 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
KBR has a Altman-Z score (2.49) which is in line with 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 has a Debt to FCF ratio of 5.59. This is comparable to the rest of the industry: KBR outperforms 49.43% 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.
KBR has a Debt to Equity ratio of 1.75. This is amonst the worse of the industry: KBR underperforms 81.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.13
WACC7.34%
2.3 Liquidity
A Current Ratio of 1.18 indicates that KBR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.18, KBR is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
KBR has a Quick 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 Quick ratio, with a value of 1.18, KBR is doing worse than 65.52% of the companies in the same industry.
| 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.
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
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 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.
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.14 indicates a reasonable valuation of KBR.
Compared to the rest of the industry, the Price/Earnings ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 82.76% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KBR to the average of the S&P500 Index (26.11), we can say KBR is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.18, the valuation of KBR can be described as very reasonable.
82.76% of the companies in the same industry are more expensive than KBR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KBR to the average of the S&P500 Index (36.21), we can say KBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than the industry average as 73.56% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 82.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.59 | ||
| EV/EBITDA | 10.31 |
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)0.7
PEG (5Y)0.75
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.
KBR's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of KBR is nicely growing with an annual growth rate of 11.11%!
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)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%
NYSE:KBR (12/2/2025, 11:32:05 AM)
42.545
+0.77 (+1.86%)
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 Cap5.40B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts76.36
Price Target55.95 (31.51%)
Short Float %3.67%
Short Ratio3.51
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 | 11.14 | ||
| Fwd PE | 10.18 | ||
| P/S | 0.67 | ||
| P/FCF | 11.59 | ||
| P/OCF | 10.53 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.31 |
EPS(TTM)3.82
EY8.98%
EPS(NY)4.18
Fwd EY9.82%
FCF(TTM)3.67
FCFY8.63%
OCF(TTM)4.04
OCFY9.5%
SpS63.47
BVpS11.53
TBVpS-15.36
PEG (NY)0.7
PEG (5Y)0.75
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 | 2.49 |
F-Score8
WACC7.34%
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.