KBR  Kbr Inc.

Exchange

NYSE

Sector

Basic Industries

Industry

Military/Government/Technical

Market Cap.

2.02B

Vuru Grade

25.50/100

Current Price

$14.13
+0.03 (+0.21%)

Growth Price

$6.86
Overvalued by 51.45%

Stability Price

$1.01
Overvalued by 92.88%

Company Metrics

  • P/E 31.89
  • P/S 0.47
  • P/B 2.66
  • EPS -0.43
  • Cash ROIC 5.28%
  • Cash Ratio 0.34
  • Dividend 0.32 / 2.33%
  • Avg. Vol. 1.70M
  • Shares 142.96M
  • Market Cap. 2.02B

Company Description

KBR, Inc. operates as an engineering, construction, and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, and industrial sectors worldwide. Its Downstream business unit provides front end engineering design; detailed engineering; engineering, procurement, and construction (EPC); EPC management; and program management services to petroc... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why Is KBR, Inc (KBR) Down 14.9% Since the Last Earnings Report?
Nasdaq - Mar 28, 2017
It has been about a month since the last earnings report for KBR, Inc.KBR . Shares have lost about 14.9% in that time frame, underperforming the market.
Just the Facts on KBR, Inc. (KBR) - StockNewsJournal
KBR Inc versus Valmont Industries Inc Head to Head Compare
CML News - 6 hours ago
Valmont Industries Inc has a higher fundamental rating then KBR Inc which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition.
KBR Inc. (KBR) Secures Position in US Air Force Contract
Yahoo Finance - Mar 10, 2017
KBR, Inc. KBR recently announced that its Government Services business, KBRwyle, has clinched a multi-award task order contract from the U.S.
Is KBR, Inc. (KBR) Preparing For A Breakout Trade? - Post Analyst
The Flinton Capital Management LLC Invests $136000 in KBR, Inc. (KBR) - DailyQuint
Still A Value Trap? – Synchronoss Technologies, Inc. (SNCR), KBR, Inc. (KBR)
USA Commerce Daily - 9 hours ago
Shares of Synchronoss Technologies, Inc. (NASDAQ:SNCR) observed rebound of -1.43% since bottoming out at $23.59 on Mar. 28, 2017.
Delving into The Technicals on KBR, Inc. (NYSE:KBR)
Midway Monitor - 2 hours ago
Traders and investors tracking shares of KBR, Inc. (NYSE:KBR) may be examining the company's FCF or Free Cash Flow.
KBR, Inc. (KBR) Announces Quarterly Dividend of $0.08
The Cerbat Gem - 14 hours ago
KBR logo KBR, Inc. (NYSE:KBR) declared a quarterly dividend on Wednesday, March 1st. Stockholders of record on Wednesday, March 15th will be given a dividend of 0.08 per share on Friday, April 14th.
State Board of Administration of Florida Retirement System Sells 12930 Shares ... - Chaffey Breeze
Analyst's Proposition on KBR, Inc. (KBR), Ollie's Bargain Outlet Holdings, Inc ...
The USA Commerce - Mar 28, 2017
Presently KBR, Inc. (NYSE:KBR) stock have an ABR of 1.33. This is built on a simplified 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell.
Are Options Traders Betting on a Big Move in KBR, Inc. (KBR) Stock? March 14, 2017
Zacks.com - Mar 14, 2017
Clearly, options traders are pricing in a big move for KBR, Inc. shares, but what is the fundamental picture for the company?
KBRwyle Flight Tester Named 2016 Navy Contractor Tester of the Year
PR Newswire (press release) - Mar 22, 2017
HOUSTON, March 22, 2017 /PRNewswire/ -- KBR, Inc. (NYSE: KBR) announced today that the National Defense Industrial Association (NDIA) has named KBRwyle employee Bryan Smith the 2016 Navy Contractor Tester of the Year at the 32nd Annual ...
KBR, Inc. (KBR) Ex-Dividend Date Scheduled for March 13, 2017
Nasdaq - Mar 10, 2017
KBR, Inc. ( KBR ) will begin trading ex-dividend on March 13, 2017. A cash dividend payment of $0.08 per share is scheduled to be paid on April 14, 2017.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for KBR to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate KBR's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$14.13 Current Price

$6.86 Growth Price (DCF)

Overvalued by 51.45%


Growth Rate Assumed by Market: 33.08%


Future Free Cash Flow Growth Rate: -9.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$1.01 Stability Price (EPV)

Overvalued by 92.88%


Discount Rate: 15.0%

$10.18 Book Price

Overvalued by 27.93%


Poor Cash Return on Invested Capital over the past 5 years

KBR has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

KBR has only created $5.28 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 67.00M 212.00M 117.00M 37.00M 50.00M
divided by
Invested Capital 2.44B 2.59B 1.21B 1.12B 2.05B
Cash ROIC 2.75% 8.19% 9.71% 3.31% 2.44%

Very Poor Return on Equity over the past 5 years

KBR has shown an inability to deliver results for shareholders. This could be due to poor management, KBR operating in a highly competitive industry, or having a weak business in general.

KBR has generated a $18.45 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 202.00M 327.00M -1.20B 226.00M -51.00M
divided by
Stockholders' Equity 2.54B 2.62B 942.00M 1.07B 757.00M
Return on Equity 7.95% 12.50% -127.18% 21.22% -6.74%

Excellent Business Performance over the past 10 years

KBR has been able to maintain profitability in good times and bad. This could mean KBR has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

KBR has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 205.00M 87.00M -77.00M 483.00M 567.00M 67.00M 212.00M 117.00M 37.00M 50.00M

Weak Balance Sheet

KBR's financial position is not ideal. The key is to check whether KBR is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 1.86B 1.15B 941.00M 786.00M 966.00M 1.05B 1.10B 970.00M 883.00M 536.00M
Current Assets 4.06B 4.14B 3.64B 3.26B 3.44B 3.67B 3.01B 2.54B 1.84B 2.05B
Total Assets 5.20B 5.88B 5.33B 5.42B 5.67B 5.77B 5.52B 4.20B 3.41B 4.14B
Current Liabilities 2.62B 3.04B 2.29B 2.35B 2.28B 2.28B 1.83B 2.02B 1.41B 1.56B
Total Liabilities 2.94B 3.83B 3.04B 3.17B 3.18B 3.23B 2.90B 3.26B 2.35B 3.39B
Stockholder' Equity 2.27B 2.05B 2.29B 2.25B 2.50B 2.54B 2.62B 942.00M 1.07B 757.00M
Current Ratio 1.55 1.36 1.59 1.39 1.51 1.61 1.65 1.26 1.31 1.31
TL-to-TA 0.56 0.65 0.57 0.59 0.56 0.56 0.53 0.78 0.69 0.82

Consistent Reinvestment of Profits over the past 10 years

KBR has consistently retained profits. This may put KBR in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, KBR can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 319.00M 596.00M 854.00M 1.16B 1.61B 1.71B 1.90B 439.00M 595.00M 488.00M
Retained Earnings Growth - 86.83% 43.29% 35.48% 38.89% 6.35% 11.29% -76.92% 35.54% -17.98%

Highly Competitive Industry over the past 10 years

It's likely that KBR is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely KBR invests heavily in R&D and Sales, General & Administrative expenses.

Only $0.97 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 302.00M 319.00M 364.00M 395.00M 480.00M 202.00M 327.00M -1.20B 226.00M -51.00M
divided by
Revenue 8.75B 11.58B 12.11B 10.10B 9.26B 7.92B 7.42B 6.37B 5.10B 4.27B
Net Profit Margin 3.45% 2.75% 3.01% 3.91% 5.18% 2.55% 4.41% -18.82% 4.43% -1.19%

Weak Pricing Power over the past 10 years

KBR is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that KBR has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $15.31 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 520.00M 761.00M 757.00M 826.00M 9.26B 669.00M 718.00M -65.00M 325.00M 112.00M
divided by
Revenue 8.75B 11.58B 12.11B 10.10B 9.26B 7.92B 7.42B 6.37B 5.10B 4.27B
Gross Margin 5.95% 6.57% 6.25% 8.18% 100.00% 8.45% 9.68% -1.02% 6.38% 2.62%

Low Capital Intensity over the past 10 years

KBR has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that KBR may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

17.06% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 43.00M 37.00M 41.00M 66.00M 83.00M 75.00M 78.00M 53.00M 10.00M 11.00M
divided by
Net Income 302.00M 319.00M 364.00M 395.00M 480.00M 202.00M 327.00M -1.20B 226.00M -51.00M
Capital Expenditure Ratio 14.24% 11.60% 11.26% 16.71% 17.29% 37.13% 23.85% -4.42% 4.42% -21.57%

Strong Dividend History over the past 10 years

KBR has consistently distributed a dividend for the past 9 years. This suggests KBR is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - 53.00M 32.00M 32.00M 93.00M 73.00M 144.00M 108.00M 75.00M 46.00M
divided by
Shares Outstanding 169.00M 167.00M 161.00M 157.00M 151.00M 149.00M 149.00M 146.00M 144.00M 142.00M
Dividend Paid Per Share - 0.32 0.20 0.20 0.62 0.49 0.97 0.74 0.52 0.32
Price at Year End 37.76 14.83 19.19 30.31 27.87 29.17 31.09 17.25 16.97 16.69
Dividend Yield - 2.14% 1.04% 0.67% 2.21% 1.68% 3.11% 4.29% 3.07% 1.94%

Strong History of Stock Buybacks over the past 10 years

KBR has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 169.00M 167.00M 161.00M 157.00M 151.00M 149.00M 149.00M 146.00M 144.00M 142.00M
Stock Bought Back - 1.20% 3.73% 2.55% 3.97% 1.34% - 2.05% 1.39% 1.41%
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