KBR (KBR) Valuation Check After 26% Year-to-Date Share Price Decline

KBR (KBR) shares have had a tough stretch this year, with the stock down about 26% year to date, even as the underlying business keeps posting steady revenue and earnings growth.

See our latest analysis for KBR.

That year to date share price decline sits against a mixed backdrop, with a modest 1 month share price recovery and a still positive 5 year total shareholder return suggesting long term momentum is intact even as near term sentiment cools.

If this kind of defence and infrastructure exposure appeals, it could be worth seeing what else is available across aerospace and defense stocks for comparison.

With earnings and revenue still growing while the share price stalls, KBR now trades at a sizable discount to analyst targets, raising the question: is this a contrarian buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 23.4% Undervalued

Compared with the last close at $42.59, the most followed narrative sees KBR’s fair value much higher, framing the stock as meaningfully mispriced today.

Analysts expect earnings to reach $664.3 million (and earnings per share of $5.36) by about September 2028, up from $400.0 million today. However, there is some disagreement amongst the analysts with the more bearish ones expecting earnings as low as $442.2 million.

Read the complete narrative.

Curious how steady mid single digit revenue growth, rising margins and a lower future earnings multiple can still back an upside story? The full narrative unpacks it.

Result: Fair Value of $55.63 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, recent revenue guidance cuts and ongoing delays in government contract awards could challenge the upside case if they persist longer than expected.

Find out about the key risks to this KBR narrative.

Build Your Own KBR Narrative

If you see things differently or want to dig into the numbers yourself, you can build a custom view in just a few minutes: Do it your way.

A great starting point for your KBR research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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