KBR INC (KBR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:KBR • US48242W1062
42.5603 USD
-0.25 (-0.58%)
Last: Feb 2, 2026, 11:42 AM
We assign a fundamental rating of 5 out of 10 to KBR. KBR was compared to 89 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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
- Looking at the Return On Assets, with a value of 5.72%, KBR is in the better half of the industry, outperforming 65.17% of the companies in the same industry.
- With a decent Return On Equity value of 25.96%, KBR is doing good in the industry, outperforming 78.65% of the companies in the same industry.
- KBR has a better Return On Invested Capital (8.28%) than 62.92% 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 12.02%.
| 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
- KBR has a better Profit Margin (4.71%) than 61.80% of its industry peers.
- KBR's Profit Margin has improved in the last couple of years.
- KBR has a Operating Margin (6.72%) which is in line with its industry peers.
- KBR's Operating Margin has improved in the last couple of years.
- KBR has a worse Gross Margin (14.28%) than 77.53% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KBR is still creating some value.
- The number of shares outstanding for KBR has been reduced compared to 1 year ago.
- KBR has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for KBR is higher compared to a year ago.
2.2 Solvency
- KBR has an Altman-Z score of 2.51. 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 (2.51) 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.
- With a Debt to FCF ratio value of 5.59, KBR perfoms like the industry average, outperforming 55.06% of the companies in the same industry.
- A Debt/Equity ratio of 1.75 is on the high side and indicates that KBR has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.75, KBR is not doing good in the industry: 78.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.09
WACC7.6%
2.3 Liquidity
- KBR has a Current 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.
- Looking at the Current ratio, with a value of 1.18, KBR is doing worse than 64.04% 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.
- KBR has a Quick ratio of 1.18. This is in the lower half of the industry: KBR underperforms 64.04% of its industry peers.
| 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.
- 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 9.66% 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)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.
- The Revenue is expected to grow by 6.62% on average over the next years.
EPS Next Y16.18%
EPS Next 2Y10.74%
EPS Next 3Y9.4%
EPS Next 5Y16.31%
Revenue Next Year2.97%
Revenue Next 2Y3.52%
Revenue Next 3Y4.03%
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.
- 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
- With a Price/Earnings ratio of 11.14, the valuation of KBR can be described as very reasonable.
- KBR's Price/Earnings ratio is rather cheap when compared to the industry. KBR is cheaper than 84.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, KBR is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.36 indicates a reasonable valuation of KBR.
- 84.27% of the companies in the same industry are more expensive than KBR, based on the Price/Forward Earnings ratio.
- KBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.36 |
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 76.40% of the companies listed in the same industry.
- 84.27% 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 | 11.6 | ||
| EV/EBITDA | 10.49 |
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)0.69
PEG (5Y)0.75
EPS Next 2Y10.74%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.53%, KBR has a reasonable but not impressive dividend return.
- KBR's Dividend Yield is a higher than the industry average which is at 1.47.
- Compared to an average S&P500 Dividend Yield of 1.83, KBR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
- KBR has been paying a dividend for at least 10 years, so it has a reliable track record.
- KBR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
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.
DP21.84%
EPS Next 2Y10.74%
EPS Next 3Y9.4%
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 for 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 6 / 10.
What is the financial health of KBR INC (KBR) stock?
The financial health rating of KBR INC (KBR) is 3 / 10.
How sustainable is the dividend of KBR INC (KBR) stock?
The dividend rating of KBR INC (KBR) is 5 / 10 and the dividend payout ratio is 21.84%.