KBR INC (KBR) Stock Fundamental Analysis
USA - NYSE:KBR - US48242W1062 - Common Stock
48.66 USD
-0.11 (-0.23%)
48.66 USD
0 (0%)
Overall KBR gets a fundamental rating of 5 out of 10. We evaluated KBR against 81 industry peers in the Professional Services industry. While KBR is still in line with the averages on profitability rating, there are concerns on its financial health. KBR is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past 5 years KBR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.37%, KBR is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
KBR's Return On Equity of 24.55% is fine compared to the rest of the industry. KBR outperforms 79.01% of its industry peers.
The Return On Invested Capital of KBR (8.56%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KBR is below the industry average of 12.93%.
The last Return On Invested Capital (8.56%) for KBR is above the 3 year average (8.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 24.55% | ||
| ROIC | 8.56% |
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 Profit Margin (4.52%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KBR has grown nicely.
With a Operating Margin value of 7.02%, KBR perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
KBR's Operating Margin has improved in the last couple of years.
KBR has a worse Gross Margin (14.51%) than 80.25% of its industry peers.
In the last couple of years the Gross Margin of KBR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.02% | ||
| PM (TTM) | 4.52% | ||
| GM | 14.51% |
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
KBR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
KBR has an Altman-Z score of 2.53. 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 of 2.53. This is comparable to the rest of the industry: KBR outperforms 41.98% of its industry peers.
The Debt to FCF ratio of KBR is 6.22, which is on the high side as it means it would take KBR, 6.22 years of fcf income to pay off all of its debts.
KBR has a Debt to FCF ratio (6.22) which is comparable to the rest of the industry.
KBR has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
KBR has a Debt to Equity ratio of 1.73. This is amonst the worse of the industry: KBR underperforms 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.12
WACC7.66%
2.3 Liquidity
KBR has a Current Ratio of 1.13. This is a normal value and indicates that KBR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of KBR (1.13) is worse than 64.20% of its industry peers.
KBR has a Quick Ratio of 1.13. 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 1.13. This is in the lower half of the industry: KBR underperforms 64.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
KBR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.74%, which is quite good.
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 12.59% 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)19.74%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%9.64%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%5.23%
3.2 Future
The Earnings Per Share is expected to grow by 15.71% on average over the next years. This is quite good.
KBR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.54% yearly.
EPS Next Y15.88%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
EPS Next 5Y15.71%
Revenue Next Year5.38%
Revenue Next 2Y5.81%
Revenue Next 3Y5.53%
Revenue Next 5Y6.54%
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
The Price/Earnings ratio is 13.37, which indicates a correct valuation of KBR.
Compared to the rest of the industry, the Price/Earnings ratio of KBR indicates a rather cheap valuation: KBR is cheaper than 82.72% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KBR to the average of the S&P500 Index (27.41), we can say KBR is valued rather cheaply.
KBR is valuated reasonably with a Price/Forward Earnings ratio of 11.36.
Based on the Price/Forward Earnings ratio, KBR is valued cheaper than 82.72% of the companies in the same industry.
KBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBR is valued a bit cheaper than 72.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KBR is valued a bit cheaper than 72.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.93 | ||
| EV/EBITDA | 11.51 |
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.
KBR has a very decent profitability rating, which may justify a higher PE ratio.
KBR's earnings are expected to grow with 13.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)0.9
EPS Next 2Y13.05%
EPS Next 3Y13.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, KBR has a reasonable but not impressive dividend return.
KBR's Dividend Yield is a higher than the industry average which is at 3.09.
Compared to an average S&P500 Dividend Yield of 2.38, KBR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of KBR grows each year by 11.11%, which is quite nice.
KBR has been paying a dividend for at least 10 years, so it has 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
KBR pays out 22.19% of its income as dividend. This is a sustainable payout ratio.
KBR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.19%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
48.66
-0.11 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.64%
Inst Owner Change0.07%
Ins Owners1.08%
Ins Owner Change-0.25%
Market Cap6.27B
Analysts76.36
Price Target61.88 (27.17%)
Short Float %3.08%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend0.53
Dividend Growth(5Y)11.11%
DP22.19%
Div Incr Years5
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.24%
Min EPS beat(2)1.92%
Max EPS beat(2)12.56%
EPS beat(4)3
Avg EPS beat(4)6.01%
Min EPS beat(4)-0.8%
Max EPS beat(4)12.56%
EPS beat(8)5
Avg EPS beat(8)4.47%
EPS beat(12)9
Avg EPS beat(12)5.89%
EPS beat(16)13
Avg EPS beat(16)6.75%
Revenue beat(2)0
Avg Revenue beat(2)-4.45%
Min Revenue beat(2)-7.14%
Max Revenue beat(2)-1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-7.14%
Max Revenue beat(4)5.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.11%
PT rev (1m)-3.96%
PT rev (3m)-8.94%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 11.36 | ||
| P/S | 0.78 | ||
| P/FCF | 14.93 | ||
| P/OCF | 13.12 | ||
| P/B | 4.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.51 |
EPS(TTM)3.64
EY7.48%
EPS(NY)4.28
Fwd EY8.8%
FCF(TTM)3.26
FCFY6.7%
OCF(TTM)3.71
OCFY7.62%
SpS62.68
BVpS11.54
TBVpS-15.27
PEG (NY)0.84
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 24.55% | ||
| ROCE | 11.49% | ||
| ROIC | 8.56% | ||
| ROICexc | 9.33% | ||
| ROICexgc | 39.18% | ||
| OM | 7.02% | ||
| PM (TTM) | 4.52% | ||
| GM | 14.51% | ||
| FCFM | 5.2% |
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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 6.22 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 33.92% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.77% | ||
| Profit Quality | 115.07% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.53 |
F-Score7
WACC7.66%
ROIC/WACC1.12
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)19.74%
EPS 3Y11.91%
EPS 5Y14.8%
EPS Q2Q%9.64%
EPS Next Y15.88%
EPS Next 2Y13.05%
EPS Next 3Y13.01%
EPS Next 5Y15.71%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y1.8%
Revenue growth 5Y6.54%
Sales Q2Q%5.23%
Revenue Next Year5.38%
Revenue Next 2Y5.81%
Revenue Next 3Y5.53%
Revenue Next 5Y6.54%
EBIT growth 1Y12.5%
EBIT growth 3Y9.89%
EBIT growth 5Y11.92%
EBIT Next Year38.37%
EBIT Next 3Y16.61%
EBIT Next 5Y12.77%
FCF growth 1Y10.53%
FCF growth 3Y16.9%
FCF growth 5Y10.28%
OCF growth 1Y1.7%
OCF growth 3Y18.45%
OCF growth 5Y12.53%