NYSE:KBR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet average dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.6%

KBR

-0.5%

US IT

-0.8%

US Market


1 Year Return

-9.4%

KBR

23.6%

US IT

13.8%

US Market

Return vs Industry: KBR underperformed the US IT industry which returned 23.6% over the past year.

Return vs Market: KBR underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

KBRIndustryMarket
7 Day-4.6%-0.5%-0.8%
30 Day-9.7%-6.8%-5.7%
90 Day-1.4%7.3%8.6%
1 Year-7.9%-9.4%24.9%23.6%16.4%13.8%
3 Year28.4%22.1%93.7%86.0%36.9%27.8%
5 Year32.2%20.8%161.3%139.8%85.0%64.2%

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?

1.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: KBR ($22.23) is trading above our estimate of fair value ($19.54)

Significantly Below Fair Value: KBR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KBR is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: KBR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KBR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KBR is good value based on its PB Ratio (2x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

How is KBR forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

117.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KBR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: KBR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KBR's is expected to become profitable in the next 3 years.

Revenue vs Market: KBR's revenue is expected to decline over the next 3 years (-4.9% per year).

High Growth Revenue: KBR's revenue is forecast to decline over the next 3 years (-4.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KBR's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has KBR performed over the past 5 years?

46.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KBR is currently unprofitable.

Growing Profit Margin: KBR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KBR is unprofitable, but has reduced losses over the past 5 years at a rate of 46.3% per year.

Accelerating Growth: Unable to compare KBR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KBR is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (8.6%).


Return on Equity

High ROE: KBR has a negative Return on Equity (-0.37%), as it is currently unprofitable.


Next Steps

Financial Health

How is KBR's financial position?


Financial Position Analysis

Short Term Liabilities: KBR's short term assets ($1.9B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: KBR's short term assets ($1.9B) exceed its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: KBR's debt to equity ratio (68.9%) is considered high.

Reducing Debt: KBR's debt to equity ratio has increased from 7.4% to 68.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable KBR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: KBR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12.9% per year.


Next Steps

Dividend

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

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KBR's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: KBR's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (4.94%).


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: KBR is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: KBR's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Stuart J. Bradie (53 yo)

6.25yrs

Tenure

US$11,300,645

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 ($USD11.30M) is above average for companies of similar size in the US market ($USD5.75M).

Compensation vs Earnings: Stuart J.'s compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Stuart J. Bradie
CEO, President & Director6.25yrsUS$11.30m0.26%
$ 8.2m
Mark Sopp
Executive VP & CFO3.58yrsUS$2.94m0.046%
$ 1.5m
Jalal Ibrahim
President of Energy Solutions – Services2.58yrsUS$2.82m0.037%
$ 1.2m
Ian Mackey
Executive Officer4.67yrsUS$2.42m0.047%
$ 1.5m
Raymond Carney
VP & Chief Accounting Officer3.33yrsno data0.017%
$ 550.6k
Alison Vasquez
Vice President of Investor Relationsno datano datano data
Eileen Akerson
Executive VP & General Counsel5.83yrsno data0.056%
$ 1.8m
Jennifer Myles
Chief People Officer0.33yrno datano data
Gregory Conlon
Chief Digital & Development Officer2.58yrsno data0.031%
$ 989.3k
William Bright
President of Government Solutions - U.S.3.33yrsno data0.035%
$ 1.1m
Todd May
SVP of Government Solutions – Space & Mission Solutionsno datano datano data
Douglas Kelly
President of Technology Solutionno datano data0.019%
$ 610.5k

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: KBR's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart J. Bradie
CEO, President & Director6.25yrsUS$11.30m0.26%
$ 8.2m
Mark Baldwin
Independent Director5.92yrsUS$287.34k0.032%
$ 998.7k
Jack Moore
Independent Director8.67yrsUS$282.39k0.036%
$ 1.1m
Lester Lyles
Independent Non Executive Chairman1.33yrsUS$346.74k0.046%
$ 1.5m
Umberto della Sala
Independent Director5.67yrsUS$261.68k0.028%
$ 870.6k
Ann Pickard
Independent Director4.75yrsUS$278.55k0.026%
$ 831.7k
James Blackwell
Independent Director6.08yrsUS$260.25k0.035%
$ 1.1m
Lynn Dugle
Independent Director0.58yrno datano data
Wendy Masiello
Independent Director3.08yrsUS$257.46k0.016%
$ 493.4k

5.7yrs

Average Tenure

65yo

Average Age

Experienced Board: KBR's board of directors are considered experienced (5.7 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: 1901
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$3.165b
  • Shares outstanding: 142.36m
  • 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 Analysis2020/09/28 04:28
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.