KBR INC (KBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBR - US48242W1062 - Common Stock
43.68 USD
+1.91 (+4.57%)
43.68 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KBR. KBR was compared to 87 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! Finally KBR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KBR was profitable.
KBR had a positive operating cash flow in the past year.
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 5.72%. This is in the better half of the industry: KBR outperforms 63.22% of its industry peers.
The Return On Equity of KBR (25.96%) is better than 77.01% of its industry peers.
KBR has a Return On Invested Capital (8.28%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for KBR is below the industry average of 12.15%.
| 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 in line compared to the rest of the industry. KBR outperforms 59.77% of its industry peers.
KBR's Profit Margin has improved in the last couple of years.
The Operating Margin of KBR (6.72%) is comparable to the rest of the industry.
KBR's Operating Margin has improved in the last couple of years.
KBR's Gross Margin of 14.28% is on the low side compared to the rest of the industry. KBR is outperformed by 80.46% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KBR is creating some value.
KBR has less shares outstanding than it did 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
An Altman-Z score of 2.49 indicates that KBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KBR (2.49) is comparable to the rest of the industry.
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 49.43% 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.
KBR has a worse Debt to Equity ratio (1.75) than 81.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 2.49 |
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.
KBR has a Current ratio of 1.18. This is in the lower half of the industry: KBR underperforms 65.52% of its industry peers.
A Quick Ratio of 1.18 indicates that KBR should not have too much problems paying its short term obligations.
KBR has a Quick ratio of 1.18. This is in the lower half of the industry: KBR underperforms 65.52% 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.
Measured over the past years, KBR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.80% on average per year.
Looking at the last year, KBR shows a quite strong growth in Revenue. The Revenue has grown by 9.66% in the last year.
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.
The Revenue is expected to grow by 6.62% on average over the next years.
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
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
Based on the Price/Earnings ratio of 11.43, the valuation of KBR can be described as reasonable.
Based on the Price/Earnings ratio, KBR is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
KBR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
A Price/Forward Earnings ratio of 10.45 indicates a reasonable valuation of KBR.
82.76% of the companies in the same industry are more expensive than KBR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.21. KBR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
73.56% of the companies in the same industry are more expensive than KBR, based on the Enterprise Value to EBITDA ratio.
KBR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KBR is cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.9 | ||
| EV/EBITDA | 10.31 |
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)0.72
PEG (5Y)0.77
EPS Next 2Y11.7%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, KBR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.07, KBR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, KBR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
On average, the dividend of KBR grows each year by 11.11%, which is quite nice.
KBR has paid a dividend for at least 10 years, which is 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
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%
43.68
+1.91 (+4.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-1.59%
Ins Owners1.09%
Ins Owner Change-0.44%
Market Cap5.55B
Revenue(TTM)8.06B
Net Income(TTM)380.00M
Analysts76.36
Price Target55.95 (28.09%)
Short Float %3.67%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)-9.58%
PT rev (3m)-9.58%
EPS NQ rev (1m)-4.71%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-6.5%
Revenue NQ rev (3m)-6.55%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 10.45 | ||
| P/S | 0.69 | ||
| P/FCF | 11.9 | ||
| P/OCF | 10.81 | ||
| P/B | 3.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.31 |
EPS(TTM)3.82
EY8.75%
EPS(NY)4.18
Fwd EY9.57%
FCF(TTM)3.67
FCFY8.4%
OCF(TTM)4.04
OCFY9.25%
SpS63.47
BVpS11.53
TBVpS-15.36
PEG (NY)0.72
PEG (5Y)0.77
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 | 2.49 |
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 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 15.99% in the next year.