KBR INC (KBR)
US48242W1062 - Common Stock
Overall KBR gets a fundamental rating of 4 out of 10. We evaluated KBR against 80 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years KBR had a positive operating cash flow.
1.2 Ratios
KBR has a Return On Assets of -4.76%. This is in the lower half of the industry: KBR underperforms 76.25% of its industry peers.
KBR has a worse Return On Equity (-19.16%) than 81.25% of its industry peers.
The Return On Invested Capital of KBR (8.21%) is better than 61.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KBR is below the industry average of 12.24%.
The 3 year average ROIC (7.34%) for KBR is below the current ROIC(8.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -19.16% | ||
| ROIC | 8.21% |
ROA(3y)-0.31%
ROA(5y)0.35%
ROE(3y)-1.96%
ROE(5y)0.22%
ROIC(3y)7.34%
ROIC(5y)6.55%
1.3 Margins
The Operating Margin of KBR (6.97%) is comparable to the rest of the industry.
KBR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 14.05%, KBR is not doing good in the industry: 88.75% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of KBR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.97% | ||
| PM (TTM) | N/A | ||
| GM | 14.05% |
OM growth 3Y6.7%
OM growth 5Y3.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.74%
GM growth 5Y3.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KBR is destroying value.
The number of shares outstanding for KBR has been reduced compared to 1 year ago.
Compared to 5 years ago, KBR has less shares outstanding
Compared to 1 year ago, KBR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.04 indicates that KBR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.04, KBR is in line with its industry, outperforming 48.75% of the companies in the same industry.
KBR has a debt to FCF ratio of 7.30. This is a slightly negative value and a sign of low solvency as KBR would need 7.30 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.30, KBR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.30 is on the high side and indicates that KBR has dependencies on debt financing.
KBR has a Debt to Equity ratio of 1.30. This is amonst the worse of the industry: KBR underperforms 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 7.3 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.99
WACC8.31%
2.3 Liquidity
KBR has a Current Ratio of 1.05. 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 Current ratio value of 1.05, KBR is not doing good in the industry: 71.25% of the companies in the same industry are doing better.
KBR has a Quick Ratio of 1.05. 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 1.05. This is in the lower half of the industry: KBR underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.78% 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 13.25% on average per year.
The Revenue has been growing slightly by 5.97% in the past year.
KBR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.20% yearly.
EPS 1Y (TTM)4.78%
EPS 3Y18.1%
EPS 5Y13.25%
EPS growth Q2Q0%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y6.45%
Revenue growth 5Y7.2%
Revenue growth Q2Q7.59%
3.2 Future
The Earnings Per Share is expected to grow by 21.80% on average over the next years. This is a very strong growth
KBR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.29% yearly.
EPS Next Y13.82%
EPS Next 2Y17.82%
EPS Next 3Y18.89%
EPS Next 5Y21.8%
Revenue Next Year7.53%
Revenue Next 2Y10.91%
Revenue Next 3Y10.71%
Revenue Next 5Y11.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
KBR is valuated rather expensively with a Price/Earnings ratio of 22.42.
KBR's Price/Earnings ratio is in line with the industry average.
KBR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.70, the valuation of KBR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KBR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.40. KBR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KBR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.28 | ||
| EV/EBITDA | 16.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KBR's earnings are expected to grow with 18.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)1.69
EPS Next 2Y17.82%
EPS Next 3Y18.89%
5. Dividend
5.1 Amount
KBR has a yearly dividend return of 0.97%, which is pretty low.
Compared to an average industry Dividend Yield of 2.11, KBR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.97, KBR pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 Years4
Div Non Decr Years15
5.3 Sustainability
The earnings of KBR are negative and hence is the payout ratio. KBR will probably not be able to sustain this dividend level.
KBR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-27.17%
EPS Next 2Y17.82%
EPS Next 3Y18.89%
KBR INC
NYSE:KBR (4/23/2024, 11:15:59 AM)
63.9
+0.78 (+1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 19.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.62
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -19.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.97% | ||
| PM (TTM) | N/A | ||
| GM | 14.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.78%
EPS 3Y18.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.97%
Revenue growth 3Y6.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y