KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
40.65 USD
+0.44 (+1.09%)
40.65 USD
0 (0%)
Taking everything into account, KBR scores 5 out of 10 in our fundamental rating. KBR was compared to 86 industry peers in the Professional Services industry. KBR has a medium profitability rating, but doesn't score so well on its financial health evaluation. KBR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally KBR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KBR had positive earnings in the past year.
In the past year KBR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KBR reported negative net income in multiple years.
KBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KBR (5.72%) is better than 62.79% of its industry peers.
KBR has a Return On Equity of 25.96%. This is in the better half of the industry: KBR outperforms 76.74% of its industry peers.
KBR has a Return On Invested Capital (8.28%) 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 12.04%.
| 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 59.30% 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 55.81% 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: 80.23% 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
KBR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
An Altman-Z score of 2.47 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KBR (2.47) is comparable to the rest of the industry.
KBR has a debt to FCF ratio of 5.59. This is a neutral value as KBR would need 5.59 years to pay back of all of its debts.
The Debt to FCF ratio of KBR (5.59) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.75 is on the high side and indicates that KBR has dependencies on debt financing.
The Debt to Equity ratio of KBR (1.75) is worse than 80.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.12
WACC7.38%
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 has a Current ratio of 1.18. This is in the lower half of the industry: KBR underperforms 66.28% of its industry peers.
A Quick Ratio of 1.18 indicates that KBR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, KBR is doing worse than 66.28% of the companies in the same industry.
| 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.
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)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.
The Revenue is expected to grow by 6.62% on average over the next years.
EPS Next Y16.18%
EPS Next 2Y11.54%
EPS Next 3Y9.88%
EPS Next 5Y16.31%
Revenue Next Year2.95%
Revenue Next 2Y3.52%
Revenue Next 3Y3.93%
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
With a Price/Earnings ratio of 10.64, the valuation of KBR can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 83.72% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KBR to the average of the S&P500 Index (26.77), we can say KBR is valued rather cheaply.
A Price/Forward Earnings ratio of 9.75 indicates a reasonable valuation of KBR.
87.21% 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 (23.35), we can say KBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than 79.07% of the companies in the same industry.
KBR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KBR is cheaper than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.08 | ||
| EV/EBITDA | 10.03 |
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)0.66
PEG (5Y)0.72
EPS Next 2Y11.54%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, KBR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.58, KBR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, KBR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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
21.84% of the earnings are spent on dividend by KBR. This is a low number and sustainable payout ratio.
KBR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.84%
EPS Next 2Y11.54%
EPS Next 3Y9.88%
40.65
+0.44 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.59%
Inst Owner Change-1.58%
Ins Owners1.11%
Ins Owner Change0.12%
Market Cap5.16B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts75
Price Target55.08 (35.5%)
Short Float %3.68%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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)-1.56%
PT rev (3m)-10.99%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-6.65%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 9.75 | ||
| P/S | 0.64 | ||
| P/FCF | 11.08 | ||
| P/OCF | 10.06 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.03 |
EPS(TTM)3.82
EY9.4%
EPS(NY)4.17
Fwd EY10.25%
FCF(TTM)3.67
FCFY9.03%
OCF(TTM)4.04
OCFY9.94%
SpS63.47
BVpS11.53
TBVpS-15.36
PEG (NY)0.66
PEG (5Y)0.72
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 | 2.47 |
F-Score8
WACC7.38%
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)22.04%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%21.43%
EPS Next Y16.18%
EPS Next 2Y11.54%
EPS Next 3Y9.88%
EPS Next 5Y16.31%
Revenue 1Y (TTM)9.66%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%-0.82%
Revenue Next Year2.95%
Revenue Next 2Y3.52%
Revenue Next 3Y3.93%
Revenue Next 5Y6.62%
EBIT growth 1Y1.31%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.51%
EBIT Next 3Y13.81%
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 16.18% in the next year.