KBR INC (KBR) Stock Fundamental Analysis
USA - NYSE:KBR - US48242W1062 - Common Stock
42.62 USD
+0.94 (+2.26%)
42.9521 USD
+0.33 (+0.78%)
KBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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
With a decent Return On Assets value of 5.72%, KBR is doing good in the industry, outperforming 62.79% of the companies in the same industry.
KBR has a better Return On Equity (25.96%) than 77.91% of its industry peers.
KBR's Return On Invested Capital of 8.28% is in line compared to the rest of the industry. KBR outperforms 59.30% 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 13.43%.
| 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's Profit Margin of 4.71% is fine compared to the rest of the industry. KBR outperforms 60.47% of its industry peers.
KBR's Profit Margin has improved in the last couple of years.
KBR has a Operating Margin of 6.72%. This is comparable to the rest of the industry: KBR outperforms 58.14% of its industry peers.
In the last couple of years the Operating Margin of KBR has grown nicely.
KBR's Gross Margin of 14.28% is on the low side compared to the rest of the industry. KBR is outperformed by 80.23% of its industry peers.
In the last couple of years the Gross Margin of KBR has grown nicely.
| 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.
Compared to 1 year ago, KBR has less shares outstanding
The number of shares outstanding for KBR has been reduced compared to 5 years ago.
The debt/assets ratio for KBR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.51 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
KBR's Altman-Z score of 2.51 is in line compared to the rest of the industry. KBR outperforms 47.67% of its industry peers.
The Debt to FCF ratio of KBR is 5.59, which is a neutral value as it means it would take KBR, 5.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.59, KBR is in line with its industry, outperforming 52.33% of the companies in the same industry.
KBR has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.75, KBR is doing worse than 80.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.51 |
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.
The Current ratio of KBR (1.18) is worse than 62.79% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.18, KBR is doing worse than 62.79% of the companies in the same industry.
| 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.
The Revenue has grown by 9.66% in the past year. This is quite good.
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
Based on estimates for the next years, KBR will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.31% on average per year.
Based on estimates for the next years, KBR will show a small growth in Revenue. The Revenue will grow by 6.62% on average per year.
EPS Next Y15.99%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
EPS Next 5Y16.31%
Revenue Next Year4.04%
Revenue Next 2Y4.44%
Revenue Next 3Y4.47%
Revenue Next 5Y6.62%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.16, which indicates a very decent valuation of KBR.
84.88% of the companies in the same industry are more expensive than KBR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.06, KBR is valued rather cheaply.
KBR is valuated reasonably with a Price/Forward Earnings ratio of 10.20.
82.56% of the companies in the same industry are more expensive than KBR, based on the Price/Forward Earnings ratio.
KBR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.2 |
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 75.58% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KBR is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.78 | ||
| EV/EBITDA | 10.57 |
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)0.7
PEG (5Y)0.75
EPS Next 2Y11.7%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.58%.
Compared to an average industry Dividend Yield of 4.51, KBR pays a bit more dividend than its industry peers.
KBR's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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 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
21.84% 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.
DP21.84%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
42.62
+0.94 (+2.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-1.66%
Ins Owners1.09%
Ins Owner Change-0.33%
Market Cap5.49B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts76.36
Price Target61.03 (43.2%)
Short Float %3.58%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)-1.37%
PT rev (3m)-5.28%
EPS NQ rev (1m)-5.64%
EPS NQ rev (3m)-5.86%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)-8.78%
Revenue NQ rev (3m)-10.77%
Revenue NY rev (1m)-1.27%
Revenue NY rev (3m)-7.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.2 | ||
| P/S | 0.68 | ||
| P/FCF | 11.78 | ||
| P/OCF | 10.7 | ||
| P/B | 3.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.57 |
EPS(TTM)3.82
EY8.96%
EPS(NY)4.18
Fwd EY9.81%
FCF(TTM)3.62
FCFY8.49%
OCF(TTM)3.98
OCFY9.34%
SpS62.56
BVpS11.36
TBVpS-15.14
PEG (NY)0.7
PEG (5Y)0.75
Graham Number31.25
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 | 2.51 |
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 Y15.99%
EPS Next 2Y11.7%
EPS Next 3Y11.31%
EPS Next 5Y16.31%
Revenue 1Y (TTM)9.66%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%-0.82%
Revenue Next Year4.04%
Revenue Next 2Y4.44%
Revenue Next 3Y4.47%
Revenue Next 5Y6.62%
EBIT growth 1Y1.31%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.21%
EBIT Next 3Y16.12%
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 7 / 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 15.99% in the next year.