NYSE:KBR

Stock Analysis Report

Executive Summary

KBR, Inc. provides professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries worldwide.

Snowflake

Fundamentals

Good value 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


Market Performance


7 Day Return

2.9%

KBR

1.0%

US IT

1.0%

US Market


1 Year Return

23.7%

KBR

24.7%

US IT

6.7%

US Market

Return vs Industry: KBR matched the US IT industry which returned 24.7% over the past year.

Return vs Market: KBR exceeded the US Market which returned 6.7% over the past year.


Share holder returns

KBRIndustryMarket
7 Day2.9%1.0%1.0%
30 Day-4.0%-0.3%-1.8%
90 Day-2.0%-2.3%-1.8%
1 Year25.7%23.7%26.0%24.7%9.1%6.7%
3 Year79.3%70.1%97.6%89.3%46.1%36.6%
5 Year50.1%36.8%156.0%132.3%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: KBR ($24.76) is trading below our estimate of fair value ($31.62)

Significantly Undervalued: KBR is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: KBR is good value based on its PE Ratio (18.5x) compared to the IT industry average (36x).

PE vs Market: KBR is poor value based on its PE Ratio (18.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: KBR is good value based on its PEG Ratio (0.9x)


Price Based on Value of Assets

PB vs Industry: KBR is good value based on its PB Ratio (2x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is KBR expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: KBR's forecast earnings growth (21.7% per year) is above the savings rate (2.7%).

Earnings vs Market: KBR's earnings (21.7% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: KBR's revenue (14.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: KBR's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: KBR's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has KBR performed over the past 5 years?

62.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KBR has become profitable over the past 5 years, growing earnings by 62% per year.

Accelerating Growth: KBR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KBR had negative earnings growth (-62.2%) over the past year, making it difficult to compare to the IT industry average (8.4%).


Return on Equity

High ROE: KBR's Return on Equity (11.2%) is considered low.


Return on Assets

ROA vs Industry: KBR's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: KBR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is KBR's financial position?


Financial Position Analysis

Short Term Liabilities: KBR's short term assets ($2.0B) exceeds its short term liabilities ($1.6B)

Long Term Liabilities: KBR's short term assets (2.0B) exceeds its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: KBR's debt to equity ratio (69%) is considered high

Reducing Debt: KBR's debt to equity ratio has increased from 3.6% to 69% over the past 5 years.

Debt Coverage: KBR's debt is well covered by operating cash flow (22.8%).

Interest Coverage: KBR's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: KBR has a low level of unsold assets or inventory.

Debt Coverage by Assets: KBR's debt is covered by short term assets (assets are 1.600640x debt).


Next Steps

Dividend

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

1.29%

Expected Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years1.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: KBR's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: KBR's dividend (1.29%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 low payout ratio (24%), KBR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KBR's dividends in 3 years are forecast to be well covered by earnings (15.4% payout ratio).


Next Steps

Management

What is the CEO of KBR's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Stuart J. Bradie (52yo)

5.3yrs

Tenure

US$9,595,456

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 ($USD9.60M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

2.5yrs

Average Tenure

53yo

Average Age

Experienced Management: KBR's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: KBR's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Mark Sopp (53yo)

    Executive VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$1.90m
  • Stuart J. Bradie (52yo)

    CEO, President & Director

    • Tenure: 5.3yrs
    • Compensation: US$9.60m
  • Ray Carney (51yo)

    VP & Chief Accounting Officer

    • Tenure: 2.4yrs
  • Farhan Mujib (55yo)

    President of Energy Solutions - Delivery

    • Tenure: 1.4yrs
    • Compensation: US$2.76m
  • Greg Conlon (50yo)

    Chief Digital & Development Officer

    • Tenure: 1.7yrs
  • Eileen Akerson (53yo)

    Executive VP & General Counsel

    • Tenure: 4.9yrs
  • Jay Ibrahim (58yo)

    President of Hydrocarbons Energy Services

    • Tenure: 1.7yrs
    • Compensation: US$2.31m
  • Ian Mackey (53yo)

    Executive VP of Global Human Resources & Chief Corporate Officer

    • Tenure: 4.8yrs
    • Compensation: US$2.20m
  • Adam Kramer

    VP of Public Law & Corporate Secretary

    • Tenure: 0yrs
  • Alison Vasquez

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Mark Baldwin (65yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$276.67k
  • Jack Moore (66yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$267.80k
  • Les Lyles (72yo)

    Non Executive Chairman

    • Tenure: 0.4yrs
    • Compensation: US$266.78k
  • Stuart J. Bradie (52yo)

    CEO, President & Director

    • Tenure: 5.3yrs
    • Compensation: US$9.60m
  • Umberto della Sala (71yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$258.76k
  • Ann Pickard (64yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$257.52k
  • Jim Blackwell (61yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$254.36k
  • Wendy Masiello (60yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$250.02k

Company Information

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


Key Information

  • Name: KBR, Inc.
  • Ticker: KBR
  • Exchange: NYSE
  • Founded: 1901
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$3.505b
  • Shares outstanding: 141.55m
  • Website: https://www.kbr.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KBRNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2006
K6BDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2006
KBR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2006
0JPNLSE (London Stock Exchange)YesCommon StockGBUSDNov 2006

Biography

KBR, Inc. provides professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries worldwide. The company operates through three se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:55
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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