NYSE:KBR

Stock Analysis Report

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Market Cap

US$5.3b

Last Updated

2021/06/25 02:47 UTC

Data Sources

Company Financials +

Executive Summary

KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. More Details


Snowflake Analysis

Proven track record with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has KBR's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KBR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KBR's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

KBR

1.1%

US Professional Services

1.3%

US Market


1 Year Return

66.3%

KBR

36.7%

US Professional Services

42.4%

US Market

Return vs Industry: KBR exceeded the US Professional Services industry which returned 37% over the past year.

Return vs Market: KBR exceeded the US Market which returned 42.6% over the past year.


Shareholder returns

KBRIndustryMarket
7 Day-1.3%1.1%1.3%
30 Day-7.1%0.08%2.8%
90 Day1.9%9.0%7.2%
1 Year68.5%66.3%37.7%36.7%44.7%42.4%
3 Year121.5%111.6%64.8%60.4%64.6%54.4%
5 Year210.6%185.5%142.4%126.1%126.8%101.3%

Long-Term Price Volatility Vs. Market

How volatile is KBR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KBR undervalued compared to its fair value and its price relative to the market?

48.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KBR ($37.43) is trading below our estimate of fair value ($73.33)

Significantly Below Fair Value: KBR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KBR is poor value based on its PE Ratio (67.2x) compared to the US Professional Services industry average (27.7x).

PE vs Market: KBR is poor value based on its PE Ratio (67.2x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: KBR is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: KBR's PB Ratio (3.2x) is in line with the US Professional Services industry average.


Future Growth

How is KBR forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KBR's forecast earnings growth (25.1% per year) is above the savings rate (2%).

Earnings vs Market: KBR's earnings (25.1% per year) are forecast to grow faster than the US market (15.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KBR's revenue (7% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: KBR's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KBR's Return on Equity is forecast to be high in 3 years time (20%)


Past Performance

How has KBR performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KBR has a large one-off loss of $147.0M impacting its March 31 2021 financial results.

Growing Profit Margin: KBR's current net profit margins (1.4%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: KBR has become profitable over the past 5 years, growing earnings by -9.2% per year.

Accelerating Growth: KBR's earnings growth over the past year (39.1%) exceeds its 5-year average (-9.2% per year).

Earnings vs Industry: KBR earnings growth over the past year (39.1%) exceeded the Professional Services industry 18.7%.


Return on Equity

High ROE: KBR's Return on Equity (4.8%) is considered low.


Financial Health

How is KBR's financial position?


Financial Position Analysis

Short Term Liabilities: KBR's short term assets ($1.6B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: KBR's short term assets ($1.6B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: KBR's debt to equity ratio (97.1%) is considered high.

Reducing Debt: KBR's debt to equity ratio has increased from 5.4% to 97.1% over the past 5 years.

Debt Coverage: KBR's debt is well covered by operating cash flow (23.1%).

Interest Coverage: KBR's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Dividend

What is KBR current dividend yield, its reliability and sustainability?

1.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KBR's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: KBR's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: KBR's dividends per share have been stable in the past 10 years.

Growing Dividend: KBR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.6%), KBR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KBR's dividends in 3 years are forecast to be well covered by earnings (17.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Stuart J. Bradie (53 yo)

7yrs

Tenure

US$9,864,381

Compensation

Mr. Stuart J. B. Bradie has been Chief Executive Officer and President at KBR, Inc. since June 2, 2014. Mr. Bradie has more than 27 years of industry experience and joined KBR from WorleyParsons. He served...


CEO Compensation Analysis

Compensation vs Market: Stuart J.'s total compensation ($USD9.86M) is above average for companies of similar size in the US market ($USD6.60M).

Compensation vs Earnings: Stuart J.'s compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KBR's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: KBR's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KBR, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KBR, Inc.
  • Ticker: KBR
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$5.343b
  • Shares outstanding: 141.35m
  • Website: https://www.kbr.com

Number of Employees


Location

  • KBR, Inc.
  • 601 Jefferson Street
  • Suite 3400
  • Houston
  • Texas
  • 77002
  • United States

Listings


Biography

KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. The company operates through three segments: Government Solutions, Technology Solutio...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/25 02:47
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.