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

Reasonable growth potential with adequate balance sheet 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

2.3%

NYSE:KBR

1.1%

US IT

0.8%

US Market


1 Year Return

29.2%

NYSE:KBR

16.0%

US IT

1.9%

US Market

KBR outperformed the IT industry which returned 15.6% over the past year.

KBR outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

KBRIndustryMarket
7 Day2.3%1.1%0.8%
30 Day3.0%0.03%3.4%
90 Day7.7%1.9%2.1%
1 Year31.2%29.2%17.2%16.0%4.2%1.9%
3 Year93.9%83.9%97.9%89.6%46.7%37.2%
5 Year43.0%30.3%143.3%118.7%62.3%44.5%

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?

18%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

KBR's share price is below the future cash flow value, but not at a moderate discount (< 20%).

KBR's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

KBR is good value based on earnings compared to the US IT industry average.

KBR is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

KBR is good value based on expected growth next year.


Price Based on Value of Assets

KBR is good value based on assets compared to the US IT industry average.


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

KBR's revenue is expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).

KBR's earnings are expected to grow significantly at over 20% yearly.

KBR's revenue growth is expected to exceed the United States of America market average.

KBR's earnings growth is expected to exceed the United States of America market average.

KBR's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

KBR is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

KBR has delivered over 20% year on year earnings growth in the past 5 years.

KBR's 1-year earnings growth is negative, it can't be compared to the 5-year average.

KBR's 1-year earnings growth is negative, it can't be compared to the US IT industry average.


Return on Equity

KBR has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

KBR used its assets less efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

KBR's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is KBR's financial position?


Financial Position Analysis

KBR is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

KBR's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

KBR's level of debt (69%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (3.6% vs 69% today).

Debt is well covered by operating cash flow (22.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

1.23%

Expected Dividend Yield


Dividend Yield and Payments Analysis

KBR's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

KBR's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6.5x coverage).


Next Steps

Management

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

3.6yrs

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

Stuart J.'s remuneration is higher than average for companies of similar size in United States of America.

Stuart J.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

53yo

Average Age

The tenure for the KBR management team is about average.


Board Age and Tenure

4.8yrs

Average Tenure

64.5yo

Average Age

The tenure for the KBR board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mark Sopp (53yo)

    Executive VP & CFO

    • Tenure: 2.6yrs
    • 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: 2.3yrs
  • John Derbyshire (68yo)

    President of Technology

    • Tenure: 8.3yrs
  • Farhan Mujib (55yo)

    President of Hydrocarbons Delivery Solutions

    • Tenure: 1.3yrs
    • Compensation: US$2.76m
  • Eileen Akerson (53yo)

    Executive VP & General Counsel

    • Tenure: 4.8yrs
  • Jay Ibrahim (58yo)

    President of Hydrocarbons Energy Services

    • Tenure: 1.6yrs
    • Compensation: US$2.31m
  • Ian Mackey (53yo)

    Executive VP of Global Human Resources & Chief Corporate Officer

    • Tenure: 4.7yrs
    • 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: 4.9yrs
    • Compensation: US$276.67k
  • Jack Moore (66yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$267.80k
  • Les Lyles (72yo)

    Non Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: US$266.78k
  • Stuart J. Bradie (52yo)

    CEO, President & Director

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

    Director

    • Tenure: 4.7yrs
    • Compensation: US$258.76k
  • Ann Pickard (64yo)

    Director

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

    Director

    • Tenure: 5.1yrs
    • Compensation: US$254.36k
  • Wendy Masiello (60yo)

    Director

    • Tenure: 2.1yrs
    • 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$3.692b
  • 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 Analysis2019/09/17 23:55
End of Day Share Price2019/09/17 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.