KBR INC (KBR) Stock Fundamental Analysis
NYSE:KBR - US48242W1062 - Common Stock
50.46 USD
-0.82 (-1.6%)
50.46 USD
0 (0%)
Overall KBR gets a fundamental rating of 5 out of 10. We evaluated KBR against 83 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 has a correct valuation and a medium growth rate. KBR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KBR was profitable.
KBR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KBR reported negative net income in multiple years.
In the past 5 years KBR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.37%, KBR is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
KBR's Return On Equity of 24.55% is amongst the best of the industry. KBR outperforms 80.72% of its industry peers.
The Return On Invested Capital of KBR (8.56%) is better than 60.24% of 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 12.57%.
The 3 year average ROIC (8.52%) for KBR is below the current ROIC(8.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 24.55% | ||
| ROIC | 8.56% |
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 4.52%. This is in the better half of the industry: KBR outperforms 60.24% of its industry peers.
In the last couple of years the Profit Margin of KBR has grown nicely.
Looking at the Operating Margin, with a value of 7.02%, KBR is in line with its industry, outperforming 59.04% of the companies in the same industry.
KBR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 14.51%, KBR is doing worse than 81.93% of the companies in the same industry.
KBR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.02% | ||
| PM (TTM) | 4.52% | ||
| GM | 14.51% |
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.
Compared to 1 year ago, KBR has less shares outstanding
KBR has less shares outstanding than it did 5 years ago.
KBR has a worse debt/assets ratio than last year.
2.2 Solvency
KBR has an Altman-Z score of 2.55. 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's Altman-Z score of 2.55 is in line compared to the rest of the industry. KBR outperforms 43.37% of its industry peers.
KBR has a debt to FCF ratio of 6.22. This is a slightly negative value and a sign of low solvency as KBR would need 6.22 years to pay back of all of its debts.
KBR has a Debt to FCF ratio (6.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.73 is on the high side and indicates that KBR has dependencies on debt financing.
The Debt to Equity ratio of KBR (1.73) is worse than 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.09
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.13 indicates that KBR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, KBR is doing worse than 65.06% of the companies in the same industry.
KBR has a Quick Ratio of 1.13. 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 1.13, KBR is doing worse than 65.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.74% 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.
KBR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.59%.
The Revenue has been growing slightly by 6.54% on average over the past years.
EPS 1Y (TTM)19.74%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%9.64%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%5.23%
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 15.71% yearly.
The Revenue is expected to grow by 6.54% on average over the next years.
EPS Next Y15.88%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
EPS Next 5Y15.71%
Revenue Next Year5.38%
Revenue Next 2Y5.81%
Revenue Next 3Y5.53%
Revenue Next 5Y6.54%
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 13.86 indicates a correct valuation of KBR.
KBR's Price/Earnings ratio is a bit cheaper when compared to the industry. KBR is cheaper than 78.31% of the companies in the same industry.
KBR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.78, the valuation of KBR can be described as reasonable.
KBR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KBR is cheaper than 79.52% of the companies in the same industry.
KBR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
68.67% of the companies in the same industry are more expensive than KBR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KBR is valued a bit cheaper than 67.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.48 | ||
| EV/EBITDA | 11.81 |
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.
The decent profitability rating of KBR may justify a higher PE ratio.
KBR's earnings are expected to grow with 13.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)0.94
EPS Next 2Y13.05%
EPS Next 3Y13.01%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.29%.
KBR's Dividend Yield is a higher than the industry average which is at 2.17.
Compared to an average S&P500 Dividend Yield of 2.32, KBR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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 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
22.19% 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.
DP22.19%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
50.46
-0.82 (-1.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.64%
Inst Owner Change0.07%
Ins Owners1.08%
Ins Owner Change-0.78%
Market Cap6.50B
Analysts80
Price Target61.88 (22.63%)
Short Float %2.97%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend0.53
Dividend Growth(5Y)11.11%
DP22.19%
Div Incr Years5
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.24%
Min EPS beat(2)1.92%
Max EPS beat(2)12.56%
EPS beat(4)3
Avg EPS beat(4)6.01%
Min EPS beat(4)-0.8%
Max EPS beat(4)12.56%
EPS beat(8)5
Avg EPS beat(8)4.47%
EPS beat(12)9
Avg EPS beat(12)5.89%
EPS beat(16)13
Avg EPS beat(16)6.75%
Revenue beat(2)0
Avg Revenue beat(2)-4.45%
Min Revenue beat(2)-7.14%
Max Revenue beat(2)-1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-7.14%
Max Revenue beat(4)5.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.11%
PT rev (1m)-6.87%
PT rev (3m)-8.25%
EPS NQ rev (1m)1%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0.61%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-9.47%
Revenue NQ rev (3m)-12.47%
Revenue NY rev (1m)-6.16%
Revenue NY rev (3m)-7.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 11.78 | ||
| P/S | 0.81 | ||
| P/FCF | 15.48 | ||
| P/OCF | 13.6 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.81 |
EPS(TTM)3.64
EY7.21%
EPS(NY)4.28
Fwd EY8.49%
FCF(TTM)3.26
FCFY6.46%
OCF(TTM)3.71
OCFY7.35%
SpS62.68
BVpS11.54
TBVpS-15.27
PEG (NY)0.87
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 24.55% | ||
| ROCE | 11.49% | ||
| ROIC | 8.56% | ||
| ROICexc | 9.33% | ||
| ROICexgc | 39.18% | ||
| OM | 7.02% | ||
| PM (TTM) | 4.52% | ||
| GM | 14.51% | ||
| FCFM | 5.2% |
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%
ROICexcg growth 3Y11.5%
ROICexcg 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-Score7
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 6.22 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 33.92% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.77% | ||
| Profit Quality | 115.07% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.55 |
F-Score7
WACC7.83%
ROIC/WACC1.09
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)19.74%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%9.64%
EPS Next Y15.88%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
EPS Next 5Y15.71%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%5.23%
Revenue Next Year5.38%
Revenue Next 2Y5.81%
Revenue Next 3Y5.53%
Revenue Next 5Y6.54%
EBIT growth 1Y12.5%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.37%
EBIT Next 3Y16.61%
EBIT Next 5Y12.77%
FCF growth 1Y10.53%
FCF growth 3Y16.9%
FCF growth 5Y10.28%
OCF growth 1Y1.7%
OCF growth 3Y18.45%
OCF growth 5Y12.53%