KBR INC (KBR) Stock Fundamental Analysis
USA - NYSE:KBR - US48242W1062 - Common Stock
43.38 USD
-0.38 (-0.87%)
43.38 USD
0 (0%)
KBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. KBR has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 5.37%, KBR is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
KBR has a Return On Equity of 24.55%. This is in the better half of the industry: KBR outperforms 78.05% of its industry peers.
With a Return On Invested Capital value of 8.56%, KBR perfoms like the industry average, outperforming 58.54% 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 13.40%.
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
With a Profit Margin value of 4.52%, KBR perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
In the last couple of years the Profit Margin of KBR has grown nicely.
KBR has a Operating Margin (7.02%) which is in line with its industry peers.
KBR's Operating Margin has improved in the last couple of years.
KBR has a Gross Margin of 14.51%. This is amonst the worse of the industry: KBR underperforms 82.93% of its industry peers.
In the last couple of years the Gross Margin of KBR has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KBR 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
KBR has an Altman-Z score of 2.46. 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.
Looking at the Altman-Z score, with a value of 2.46, KBR is in line with its industry, outperforming 43.90% of the companies in the same industry.
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's Debt to FCF ratio of 6.22 is in line compared to the rest of the industry. KBR outperforms 45.12% of its industry peers.
KBR has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.73, KBR is doing worse than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.16
WACC7.38%
2.3 Liquidity
KBR has a Current 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.
KBR has a Current ratio of 1.13. This is in the lower half of the industry: KBR underperforms 65.85% of its industry peers.
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.
KBR has a Quick ratio of 1.13. This is in the lower half of the industry: KBR underperforms 65.85% of its industry peers.
| 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.
Looking at the last year, KBR shows a quite strong growth in Revenue. The Revenue has grown by 12.59% 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)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
The Earnings Per Share is expected to grow by 15.71% on average over the next years. This is quite good.
Based on estimates for the next years, KBR will show a small growth in Revenue. The Revenue will grow by 6.54% on average per year.
EPS Next Y15.94%
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
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 11.92, the valuation of KBR can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 80.49% of the companies listed in the same industry.
KBR is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.13, the valuation of KBR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, KBR is valued cheaper than 82.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, KBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
KBR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KBR is cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.31 | ||
| EV/EBITDA | 10.64 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as KBR's earnings are expected to grow with 13.01% in the coming years.
PEG (NY)0.75
PEG (5Y)0.81
EPS Next 2Y13.05%
EPS Next 3Y13.01%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.90, KBR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, KBR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of KBR is nicely growing with an annual growth rate of 11.11%!
KBR has paid a dividend for at least 10 years, which is 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.
KBR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.19%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
43.38
-0.38 (-0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-0.02%
Ins Owners1.09%
Ins Owner Change-0.25%
Market Cap5.59B
Analysts76.36
Price Target61.88 (42.65%)
Short Float %3.19%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)0%
PT rev (3m)-8.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.69 | ||
| P/FCF | 13.31 | ||
| P/OCF | 11.69 | ||
| P/B | 3.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.64 |
EPS(TTM)3.64
EY8.39%
EPS(NY)4.28
Fwd EY9.87%
FCF(TTM)3.26
FCFY7.51%
OCF(TTM)3.71
OCFY8.55%
SpS62.68
BVpS11.54
TBVpS-15.27
PEG (NY)0.75
PEG (5Y)0.81
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 | 2.46 |
F-Score7
WACC7.38%
ROIC/WACC1.16
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 Y15.94%
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 Year38.21%
EBIT Next 3Y16.12%
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%