KBR INC (KBR) Stock Fundamental Analysis
NYSE:KBR - New York Stock Exchange, Inc. - US48242W1062 - Common Stock - Currency: USD
Overall KBR gets a fundamental rating of 5 out of 10. We evaluated KBR 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 has a better Return On Assets (5.81%) than 65.85% of its industry peers.
KBR's Return On Equity of 28.09% is amongst the best of the industry. KBR outperforms 80.49% of its industry peers.
KBR has a Return On Invested Capital of 8.44%. This is in the better half of the industry: KBR outperforms 62.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KBR is below the industry average of 12.28%.
| 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
Looking at the Profit Margin, with a value of 4.99%, KBR is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
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 62.20% of its industry peers.
In the last couple of years the Operating Margin of KBR has grown nicely.
The Gross Margin of KBR (14.45%) is worse than 81.71% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KBR is destroying value.
Compared to 1 year ago, KBR has less shares outstanding
Compared to 5 years ago, KBR has less shares outstanding
The debt/assets ratio for KBR is higher compared to a year ago.
2.2 Solvency
KBR has an Altman-Z score of 2.44. 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 (2.44) which is comparable to the rest of the industry.
KBR has a debt to FCF ratio of 6.73. This is a slightly negative value and a sign of low solvency as KBR would need 6.73 years to pay back of all of its debts.
KBR has a Debt to FCF ratio (6.73) which is in line with its industry peers.
A Debt/Equity ratio of 1.91 is on the high side and indicates that KBR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.91, KBR is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.98
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.11 indicates that KBR should not have too much problems paying its short term obligations.
KBR's Current ratio of 1.11 is on the low side compared to the rest of the industry. KBR is outperformed by 67.07% of its industry peers.
A Quick Ratio of 1.11 indicates that KBR should not have too much problems paying its short term obligations.
KBR's Quick ratio of 1.11 is on the low side compared to the rest of the industry. KBR is outperformed by 67.07% of its industry peers.
| 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.
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.
The Revenue has grown by 12.84% 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)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 15.84% on average per year.
Based on estimates for the next years, KBR will show a small growth in Revenue. The Revenue will grow by 7.78% on average per year.
EPS Next Y15.18%
EPS Next 2Y12.22%
EPS Next 3Y9.29%
EPS Next 5Y15.84%
Revenue Next Year12.51%
Revenue Next 2Y9.34%
Revenue Next 3Y10.96%
Revenue Next 5Y7.78%
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.
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
Based on the Price/Earnings ratio of 13.08, the valuation of KBR can be described as correct.
KBR's Price/Earnings ratio is a bit cheaper when compared to the industry. KBR is cheaper than 78.05% of the companies in the same industry.
When comparing the Price/Earnings ratio of KBR to the average of the S&P500 Index (27.54), we can say KBR is valued rather cheaply.
A Price/Forward Earnings ratio of 11.04 indicates a reasonable valuation of KBR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KBR indicates a somewhat cheap valuation: KBR is cheaper than 76.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, KBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
KBR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KBR is cheaper than 69.51% of the companies in the same industry.
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 | 14.81 | ||
| EV/EBITDA | 11.49 |
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.
The decent profitability rating of KBR may justify a higher PE ratio.
PEG (NY)0.86
PEG (5Y)0.88
EPS Next 2Y12.22%
EPS Next 3Y9.29%
5. Dividend
5.1 Amount
KBR has a Yearly Dividend Yield of 1.40%.
KBR's Dividend Yield is a higher than the industry average which is at 2.11.
With a Dividend Yield of 1.40, KBR pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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
20.35% 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.
DP20.35%
EPS Next 2Y12.22%
EPS Next 3Y9.29%
46.56
-0.51 (-1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change-0.23%
Ins Owners1.1%
Ins Owner Change2.87%
Market Cap6.04B
Analysts80
Price Target66.45 (42.72%)
Short Float %2.62%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)-2.22%
PT rev (3m)-9.52%
EPS NQ rev (1m)-2.07%
EPS NQ rev (3m)-2.84%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-3.75%
Revenue NY rev (1m)-2.08%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.04 | ||
| P/S | 0.76 | ||
| P/FCF | 14.81 | ||
| P/OCF | 12.88 | ||
| P/B | 4.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.49 |
EPS(TTM)3.56
EY7.65%
EPS(NY)4.22
Fwd EY9.06%
FCF(TTM)3.14
FCFY6.75%
OCF(TTM)3.61
OCFY7.76%
SpS61.5
BVpS10.92
TBVpS-15.25
PEG (NY)0.86
PEG (5Y)0.88
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 | 2.44 |
F-Score7
WACC8.63%
ROIC/WACC0.98
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 Y15.18%
EPS Next 2Y12.22%
EPS Next 3Y9.29%
EPS Next 5Y15.84%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%13.04%
Revenue Next Year12.51%
Revenue Next 2Y9.34%
Revenue Next 3Y10.96%
Revenue Next 5Y7.78%
EBIT growth 1Y14.37%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.45%
EBIT Next 3Y13.7%
EBIT Next 5Y13.11%
FCF growth 1Y58.14%
FCF growth 3Y16.9%
FCF growth 5Y10.28%
OCF growth 1Y37.13%
OCF growth 3Y18.45%
OCF growth 5Y12.53%