KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
40.22 USD
-0.01 (-0.02%)
40.22 USD
0 (0%)
Overall KBR gets a fundamental rating of 5 out of 10. We evaluated KBR against 86 industry peers in the Professional Services industry. While KBR is still in line with the averages on profitability rating, there are concerns on its financial health. KBR is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In multiple years KBR reported negative net income over the last 5 years.
In the past 5 years KBR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.72%, KBR is doing good in the industry, outperforming 62.79% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 8.28%, KBR is in line with its industry, outperforming 59.30% of the companies in the same industry.
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.
KBR's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 6.72%, KBR perfoms like the industry average, outperforming 55.81% 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 (14.28%) than 80.23% 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.
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.
Compared to 1 year ago, KBR has a worse debt to assets ratio.
2.2 Solvency
KBR has an Altman-Z score of 2.47. 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.
With a Altman-Z score value of 2.47, KBR perfoms like the industry average, outperforming 45.35% of the companies in the same 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 53.49% of the companies in the same industry.
KBR has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
KBR has a Debt to Equity ratio of 1.75. This is amonst the worse of the industry: KBR underperforms 80.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.11
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.18 indicates that KBR should not have too much problems paying 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.
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.
KBR's Quick ratio of 1.18 is on the low side compared to the rest of the industry. KBR is outperformed by 66.28% of its industry peers.
| 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.
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 9.66% 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)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 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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 10.53, the valuation of KBR can be described as reasonable.
83.72% of the companies in the same industry are more expensive than KBR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KBR to the average of the S&P500 Index (26.92), we can say KBR is valued rather cheaply.
KBR is valuated reasonably with a Price/Forward Earnings ratio of 9.65.
KBR's Price/Forward Earnings ratio is rather cheap when compared to the industry. KBR is cheaper than 87.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. KBR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
79.07% of the companies in the same industry are more expensive than KBR, based on the Enterprise Value to EBITDA ratio.
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 | 10.96 | ||
| 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)0.65
PEG (5Y)0.71
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.
KBR's Dividend Yield is a higher than the industry average which is at 1.58.
KBR's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| 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.
The dividend of KBR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.84%
EPS Next 2Y11.54%
EPS Next 3Y9.88%
40.22
-0.01 (-0.02%)
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 Cap5.11B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts75
Price Target55.08 (36.95%)
Short Float %3.7%
Short Ratio3.63
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 | 10.53 | ||
| Fwd PE | 9.65 | ||
| P/S | 0.63 | ||
| P/FCF | 10.96 | ||
| P/OCF | 9.96 | ||
| P/B | 3.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.03 |
EPS(TTM)3.82
EY9.5%
EPS(NY)4.17
Fwd EY10.36%
FCF(TTM)3.67
FCFY9.12%
OCF(TTM)4.04
OCFY10.04%
SpS63.47
BVpS11.53
TBVpS-15.36
PEG (NY)0.65
PEG (5Y)0.71
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
WACC7.43%
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 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.