KBR INC (KBR) Stock Fundamental Analysis
NYSE:KBR - New York Stock Exchange, Inc. - US48242W1062 - Common Stock
KBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 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 is not valued too expensively and it also shows a decent growth rate. 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.
KBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.72%, KBR is in line with its industry, outperforming 55.70% of the companies in the same industry.
KBR's Return On Equity of 21.29% is fine compared to the rest of the industry. KBR outperforms 74.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.30%, KBR is in line with its industry, outperforming 53.16% of the companies in the same industry.
KBR had an Average Return On Invested Capital over the past 3 years of 7.34%. This is significantly below the industry average of 13.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 21.29% | ||
| ROIC | 7.3% |
ROA(3y)-0.31%
ROA(5y)0.35%
ROE(3y)-1.96%
ROE(5y)0.22%
ROIC(3y)7.34%
ROIC(5y)6.55%
1.3 Margins
KBR has a Profit Margin (4.35%) which is in line with its industry peers.
KBR has a Operating Margin of 7.28%. This is comparable to the rest of the industry: KBR outperforms 59.49% of its industry peers.
In the last couple of years the Operating Margin of KBR has grown nicely.
Looking at the Gross Margin, with a value of 14.24%, KBR is doing worse than 86.08% of the companies in the same industry.
KBR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.28% | ||
| PM (TTM) | 4.35% | ||
| GM | 14.24% |
OM growth 3Y6.7%
OM growth 5Y3.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.74%
GM growth 5Y3.39%
2. Health
2.1 Basic Checks
KBR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
KBR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.54 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KBR (2.54) is worse than 60.76% of its industry peers.
KBR has a debt to FCF ratio of 6.05. This is a slightly negative value and a sign of low solvency as KBR would need 6.05 years to pay back of all of its debts.
KBR has a Debt to FCF ratio (6.05) which is in line with its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that KBR has dependencies on debt financing.
KBR has a worse Debt to Equity ratio (1.70) than 86.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.83
WACC8.77%
2.3 Liquidity
KBR has a Current Ratio of 1.07. 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 1.07. This is in the lower half of the industry: KBR underperforms 67.09% of its industry peers.
A Quick Ratio of 1.07 indicates that KBR should not have too much problems paying its short term obligations.
KBR's Quick ratio of 1.07 is on the low side compared to the rest of the industry. KBR is outperformed by 67.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
KBR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.82%, which is quite good.
Measured over the past years, KBR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.25% on average per year.
KBR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.55%.
KBR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.20% yearly.
EPS 1Y (TTM)9.82%
EPS 3Y18.1%
EPS 5Y13.25%
EPS Q2Q%12%
Revenue 1Y (TTM)7.55%
Revenue growth 3Y6.45%
Revenue growth 5Y7.2%
Sales Q2Q%10%
3.2 Future
KBR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.20% yearly.
KBR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.16% yearly.
EPS Next Y15.47%
EPS Next 2Y17.33%
EPS Next 3Y18.64%
EPS Next 5Y22.2%
Revenue Next Year8.86%
Revenue Next 2Y12.91%
Revenue Next 3Y11.87%
Revenue Next 5Y13.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.96, which indicates a rather expensive current valuation of KBR.
Based on the Price/Earnings ratio, KBR is valued a bit cheaper than the industry average as 64.56% of the companies are valued more expensively.
KBR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.13, KBR is valued correctly.
Based on the Price/Forward Earnings ratio, KBR is valued a bit cheaper than 73.42% of the companies in the same industry.
KBR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KBR is on the same level as its industry peers.
75.95% 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 | 18.35 | ||
| EV/EBITDA | 14.7 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KBR's earnings are expected to grow with 18.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)1.43
EPS Next 2Y17.33%
EPS Next 3Y18.64%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.00%. 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 1.82.
With a Dividend Yield of 1.00, KBR pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
On average, the dividend of KBR grows each year by 11.11%, which is quite nice.
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 24.38% 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.
DP24.38%
EPS Next 2Y17.33%
EPS Next 3Y18.64%
KBR INC
NYSE:KBR (1/17/2025, 8:11:04 PM)
After market: 59.36 0 (0%)59.36
-0.44 (-0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.1%
Inst Owner Change0.78%
Ins Owners1.23%
Ins Owner Change-0.79%
Market Cap7.91B
Analysts81.54
Price Target78.99 (33.07%)
Short Float %1.76%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend0.53
Dividend Growth(5Y)11.11%
DP24.38%
Div Incr Years5
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.46%
Min EPS beat(2)-0.8%
Max EPS beat(2)3.72%
EPS beat(4)2
Avg EPS beat(4)2.77%
Min EPS beat(4)-0.8%
Max EPS beat(4)8.57%
EPS beat(8)5
Avg EPS beat(8)5.47%
EPS beat(12)9
Avg EPS beat(12)6.08%
EPS beat(16)12
Avg EPS beat(16)6.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)-1.37%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)1.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.14%
Revenue beat(12)2
Avg Revenue beat(12)-1.37%
Revenue beat(16)4
Avg Revenue beat(16)0.06%
PT rev (1m)0%
PT rev (3m)-1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 15.13 | ||
| P/S | 1.08 | ||
| P/FCF | 18.35 | ||
| P/OCF | 15.66 | ||
| P/B | 5.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.7 |
EPS(TTM)3.13
EY5.27%
EPS(NY)3.92
Fwd EY6.61%
FCF(TTM)3.23
FCFY5.45%
OCF(TTM)3.79
OCFY6.39%
SpS55.16
BVpS11.28
TBVpS-14.52
PEG (NY)1.23
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 21.29% | ||
| ROCE | 10.8% | ||
| ROIC | 7.3% | ||
| ROICexc | 8.05% | ||
| ROICexgc | 34.32% | ||
| OM | 7.28% | ||
| PM (TTM) | 4.35% | ||
| GM | 14.24% | ||
| FCFM | 5.86% |
ROA(3y)-0.31%
ROA(5y)0.35%
ROE(3y)-1.96%
ROE(5y)0.22%
ROIC(3y)7.34%
ROIC(5y)6.55%
ROICexc(3y)8.05%
ROICexc(5y)7.34%
ROICexgc(3y)33.92%
ROICexgc(5y)26.65%
ROCE(3y)10.86%
ROCE(5y)9.69%
ROICexcg growth 3Y27.79%
ROICexcg growth 5Y14.11%
ROICexc growth 3Y14.85%
ROICexc growth 5Y5.58%
OM growth 3Y6.7%
OM growth 5Y3.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.74%
GM growth 5Y3.39%
F-Score7
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 6.05 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 49.66% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.83% | ||
| Profit Quality | 134.69% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.54 |
F-Score7
WACC8.77%
ROIC/WACC0.83
Cap/Depr(3y)44.64%
Cap/Depr(5y)36.32%
Cap/Sales(3y)0.91%
Cap/Sales(5y)0.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.82%
EPS 3Y18.1%
EPS 5Y13.25%
EPS Q2Q%12%
EPS Next Y15.47%
EPS Next 2Y17.33%
EPS Next 3Y18.64%
EPS Next 5Y22.2%
Revenue 1Y (TTM)7.55%
Revenue growth 3Y6.45%
Revenue growth 5Y7.2%
Sales Q2Q%10%
Revenue Next Year8.86%
Revenue Next 2Y12.91%
Revenue Next 3Y11.87%
Revenue Next 5Y13.16%
EBIT growth 1Y14.32%
EBIT growth 3Y13.58%
EBIT growth 5Y10.83%
EBIT Next Year51.18%
EBIT Next 3Y23.54%
EBIT Next 5Y20.39%
FCF growth 1Y48.11%
FCF growth 3Y-10.23%
FCF growth 5Y11.14%
OCF growth 1Y49.41%
OCF growth 3Y-3.38%
OCF growth 5Y14.94%