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%)
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 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
In the past year KBR was profitable.
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.
Each year in the past 5 years KBR had a positive operating cash flow.
1.2 Ratios
KBR has a better Return On Assets (5.72%) 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.
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.
The Average Return On Invested Capital over the past 3 years for KBR 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
Looking at the Profit Margin, with a value of 4.71%, KBR is in line with its industry, outperforming 59.30% of the companies in the same industry.
KBR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.72%, KBR is in line with its industry, 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.
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.
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 2.47. 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.
KBR has a Altman-Z score (2.47) which is in line with its industry peers.
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/WACC1.11
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.
Looking at the Current ratio, with a value of 1.18, KBR is doing worse than 66.28% of the companies in the same industry.
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.
With a Quick ratio value of 1.18, KBR is not doing good in the industry: 66.28% of the companies in the same industry are doing better.
| 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.
KBR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.80% yearly.
KBR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.66%.
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
The Earnings Per Share is expected to grow by 16.31% on average over the next years. This is quite good.
KBR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.62% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KBR is valuated reasonably with a Price/Earnings ratio of 10.53.
Based on the Price/Earnings ratio, KBR is valued cheaper than 83.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, KBR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.65, the valuation of KBR can be described as reasonable.
Based on the Price/Forward Earnings ratio, KBR is valued cheaper than 87.21% of the companies in the same industry.
KBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KBR indicates a somewhat cheap valuation: KBR is cheaper than 79.07% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 88.37% of the companies listed 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.
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 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
KBR pays out 21.84% 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.
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.