KBR INC (KBR) Stock Fundamental Analysis
NYSE:KBR - New York Stock Exchange, Inc. - US48242W1062 - Common Stock - Currency: USD
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. KBR has a decent growth rate and is not valued too expensively. Finally 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.
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
KBR's Return On Assets of 5.81% is fine compared to the rest of the industry. KBR outperforms 63.41% of its industry peers.
With an excellent Return On Equity value of 28.09%, KBR belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.44%, KBR is doing good in the industry, outperforming 62.20% 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 12.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 28.09% | ||
| ROIC | 8.44% |
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's Profit Margin of 4.99% is fine compared to the rest of the industry. KBR outperforms 62.20% of its industry peers.
In the last couple of years the Profit Margin of KBR has grown nicely.
KBR's Operating Margin of 7.08% is fine compared to the rest of the industry. KBR outperforms 60.98% of its industry peers.
KBR's Operating Margin has improved in the last couple of years.
KBR has a worse Gross Margin (14.45%) than 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 | 7.08% | ||
| PM (TTM) | 4.99% | ||
| GM | 14.45% |
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
An Altman-Z score of 2.52 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
KBR has a Altman-Z score (2.52) which is in line with its industry peers.
The Debt to FCF ratio of KBR is 6.73, which is on the high side as it means it would take KBR, 6.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.73, KBR is in line with its industry, outperforming 46.34% of the companies in the same industry.
KBR has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
KBR's Debt to Equity ratio of 1.91 is on the low side compared to the rest of the industry. KBR is outperformed by 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.99
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.11 indicates that KBR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.11, KBR is doing worse than 62.20% of the companies in the same industry.
KBR has a Quick Ratio of 1.11. 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 1.11, KBR is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.68% over the past year.
The Earnings Per Share has been growing by 14.80% on average over the past years. This is quite good.
Looking at the last year, KBR shows a quite strong growth in Revenue. The Revenue has grown by 12.84% 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)20.68%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%27.27%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%13.04%
3.2 Future
Based on estimates for the next years, KBR will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.50% on average per year.
KBR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.14% yearly.
EPS Next Y16.08%
EPS Next 2Y13.46%
EPS Next 3Y11.67%
EPS Next 5Y17.5%
Revenue Next Year14.44%
Revenue Next 2Y11.43%
Revenue Next 3Y10.66%
Revenue Next 5Y11.14%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.36, which indicates a correct valuation of KBR.
KBR's Price/Earnings ratio is a bit cheaper when compared to the industry. KBR is cheaper than 68.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of KBR to the average of the S&P500 Index (25.82), we can say KBR is valued slightly cheaper.
KBR is valuated reasonably with a Price/Forward Earnings ratio of 11.85.
Based on the Price/Forward Earnings ratio, KBR is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, KBR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than the industry average as 63.41% 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 | 16.26 | ||
| EV/EBITDA | 12.52 |
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.
KBR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)0.97
EPS Next 2Y13.46%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, KBR has a reasonable but not impressive dividend return.
KBR's Dividend Yield is a higher than the industry average which is at 2.02.
With a Dividend Yield of 1.27, KBR pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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 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 20.35% of its income as dividend. This is a sustainable payout ratio.
The dividend of KBR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.35%
EPS Next 2Y13.46%
EPS Next 3Y11.67%
51.12
-1.22 (-2.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.79%
Inst Owner Change-1.65%
Ins Owners1.12%
Ins Owner Change3.41%
Market Cap6.63B
Analysts83.33
Price Target67.45 (31.94%)
Short Float %2.64%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.53
Dividend Growth(5Y)11.11%
DP20.35%
Div Incr Years5
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.46%
Min EPS beat(2)10.36%
Max EPS beat(2)12.56%
EPS beat(4)3
Avg EPS beat(4)6.46%
Min EPS beat(4)-0.8%
Max EPS beat(4)12.56%
EPS beat(8)5
Avg EPS beat(8)4.48%
EPS beat(12)9
Avg EPS beat(12)7.04%
EPS beat(16)13
Avg EPS beat(16)7.58%
Revenue beat(2)1
Avg Revenue beat(2)1.67%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)5.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)5.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)3
Avg Revenue beat(12)-0.8%
Revenue beat(16)5
Avg Revenue beat(16)0.56%
PT rev (1m)-8.16%
PT rev (3m)-12.61%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-3.73%
EPS NY rev (1m)0.95%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)-2.38%
Revenue NQ rev (3m)-3.27%
Revenue NY rev (1m)-1.73%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 11.85 | ||
| P/S | 0.83 | ||
| P/FCF | 16.26 | ||
| P/OCF | 14.14 | ||
| P/B | 4.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.52 |
EPS(TTM)3.56
EY6.96%
EPS(NY)4.31
Fwd EY8.44%
FCF(TTM)3.14
FCFY6.15%
OCF(TTM)3.61
OCFY7.07%
SpS61.5
BVpS10.92
TBVpS-15.25
PEG (NY)0.89
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 28.09% | ||
| ROCE | 11.32% | ||
| ROIC | 8.44% | ||
| ROICexc | 9.26% | ||
| ROICexgc | 36.57% | ||
| OM | 7.08% | ||
| PM (TTM) | 4.99% | ||
| GM | 14.45% | ||
| FCFM | 5.11% |
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 Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 6.73 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 37.89% | ||
| Cap/Sales | 0.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.6% | ||
| Profit Quality | 102.51% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.52 |
F-Score7
WACC8.5%
ROIC/WACC0.99
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)20.68%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%27.27%
EPS Next Y16.08%
EPS Next 2Y13.46%
EPS Next 3Y11.67%
EPS Next 5Y17.5%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%13.04%
Revenue Next Year14.44%
Revenue Next 2Y11.43%
Revenue Next 3Y10.66%
Revenue Next 5Y11.14%
EBIT growth 1Y14.37%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.74%
EBIT Next 3Y14.17%
EBIT Next 5Y15.5%
FCF growth 1Y58.14%
FCF growth 3Y16.9%
FCF growth 5Y10.28%
OCF growth 1Y37.13%
OCF growth 3Y18.45%
OCF growth 5Y12.53%