KBR  Kbr Inc.

Exchange

NYSE

Sector

Basic Industries

Industry

Military/Government/Technical

Market Cap.

2.23B

Vuru Grade

45.50/100

Current Price

$15.60
-0.55 (-3.41%)

Growth Price

$8.55
Overvalued by 45.17%

Stability Price

$37.20
Undervalued by 138.49%

Company Metrics

  • P/E 33.05
  • P/S 0.55
  • P/B 2.07
  • EPS 0.47
  • Cash ROIC 9.47%
  • Cash Ratio 0.63
  • Dividend 0.32 / 1.98%
  • Avg. Vol. 1.44M
  • Shares 142.95M
  • Market Cap. 2.23B

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

KBR, Inc. (KBR) Posts Q4 Loss of $0.59/Share
StreetInsider.com - Feb 24, 2017
KBR, Inc. (NYSE: KBR) reported Q4 EPS of ($0.59), $0.79 worse than the analyst estimate of $0.20. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.21 billion.
KBR Inc. (KBR) Moves Lower on Volume Spike for February 24 - Equities.com
KBR, Inc. (NYSE:KBR) Files An 8-K Results of Operations and Financial Condition - Market Exclusive
What's in Store for KBR Inc. (KBR) this Earnings Season?
Yahoo Finance - Feb 21, 2017
KBR, Inc. KBR is set to report fourth-quarter 2016 results, before the opening bell on Feb 24. In the last reported quarter, KBR Inc. posted a negative earnings surprise of 11.8%. The company has a choppy earnings track record, with two beats, one miss ...
Stock Price of KBR, Inc. (KBR) Decreases -2.08%
Highland Mirror - Feb 21, 2017
KBR, Inc. s chart and data analysis indicates that the stock price has dropped -2.6% in the past 12 Weeks , but analyzing the 6 month charts for the stock , the price continues to stay positive and keep the rally at 12.86% .
Lookout for Price Target? KBR, Inc. (KBR), AMC Networks Inc. (AMCX)
StockNewsJournal - Feb 24, 2017
Investors who are keeping close eye on the stock of KBR, Inc. (NYSE:KBR) established that the company was able to keep return on investment at 3.42 in the trailing twelve month while Reuters data showed that industry's average stands at 5.04 and sector ...
Technicals in Focus for KBR, Inc. (KBR)
The USA Commerce - Feb 24, 2017
We have gathered the technical data on KBR, Inc. (KBR), and see some interesting trends in the stock's behavior of late.
Revenue Approximations Analysis: Brinker International, Inc. (EAT), KBR, Inc ...
StockNewsJournal - Feb 22, 2017
KBR, Inc. (NYSE:KBR), at its latest closing price of $16.73, it has a price-to-book ratio of 2.12, compared to an industry average at 1.08.
EPS Prediction At $0.31 For KBR, Inc. (NYSE:KBR)
Markets Daily - 19 hours ago
According to analyst estimates, KBR, Inc. (NYSE:KBR) can record quarterly EPS of $0.31. The basis for this assessment utilizes the average of the EPS that the sell-side analysts give.
Lookout for Price Target? KBR, Inc. (KBR), SCANA Corporation (SCG)
StockNewsJournal - Feb 20, 2017
KBR, Inc. (KBR) have shown a high EPS growth of -7.40% in the last 5 years and has earnings decline of 116.30% yoy. Analysts have a mean recommendation of 2.30 on this stock (A rating of less than 2 means buy, “hold” within the 3 range, “sell” within ...
KBR Passes Through 2% Yield Mark
Nasdaq - Feb 23, 2017
Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of KBR Inc (Symbol: KBR) were yielding above the 2% mark based on its quarterly dividend (annualized to $0.32), with the stock changing hands as low as ...
KBR, Inc. (KBR), ConforMIS, Inc. (CFMS) Stock Eyes Ahead of Earnings
The USA Commerce - Feb 21, 2017
Shares of KBR, Inc. (NYSE:KBR) dropped -4.24% to $16.50. During the trading on 02/17/2017, Company's stock ranged from $16.40 to $17.07.
2 Stocks Analyst Opinion Asks for Deeper Look: KBR, Inc. (NYSE:KBR), ConforMIS ... - The Voice Registrar
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.

$15.60 Current Price

$8.55 Growth Price (DCF)

Overvalued by 45.17%


Growth Rate Assumed by Market: 38.27%


Future Free Cash Flow Growth Rate: -10.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$37.20 Stability Price (EPV)

Undervalued by 138.49%


Discount Rate: 15.0%

$14.25 Book Price

Overvalued by 8.65%


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 $9.47 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 567.00M 67.00M 212.00M 117.00M 37.00M
divided by
Invested Capital 2.42B 2.44B 2.59B 1.21B 1.12B
Cash ROIC 23.40% 2.75% 8.19% 9.71% 3.31%

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 $13.26 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 480.00M 202.00M 327.00M -1.20B 226.00M
divided by
Stockholders' Equity 2.50B 2.54B 2.62B 942.00M 1.07B
Return on Equity 19.24% 7.95% 12.50% -127.18% 21.22%

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
2006200720082009201020112012201320142015
Free Cash Flow 874.00M 205.00M 87.00M -77.00M 483.00M 567.00M 67.00M 212.00M 117.00M 37.00M

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
2006200720082009201020112012201320142015
Cash 1.46B 1.86B 1.15B 941.00M 786.00M 966.00M 1.05B 1.10B 970.00M 883.00M
Current Assets 3.90B 4.06B 4.14B 3.64B 3.26B 3.44B 3.67B 3.01B 2.54B 1.84B
Total Assets 5.41B 5.20B 5.88B 5.33B 5.42B 5.67B 5.77B 5.52B 4.20B 3.41B
Current Liabilities 2.98B 2.62B 3.04B 2.29B 2.35B 2.28B 2.28B 1.83B 2.02B 1.41B
Total Liabilities 3.62B 2.94B 3.83B 3.04B 3.17B 3.18B 3.23B 2.90B 3.26B 2.35B
Stockholder' Equity 1.79B 2.27B 2.05B 2.29B 2.25B 2.50B 2.54B 2.62B 942.00M 1.07B
Current Ratio 1.31 1.55 1.36 1.59 1.39 1.51 1.61 1.65 1.26 1.31
TL-to-TA 0.67 0.56 0.65 0.57 0.59 0.56 0.56 0.53 0.78 0.69

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
2006200720082009201020112012201320142015
Retained Earnings 27.00M 319.00M 596.00M 854.00M 1.16B 1.61B 1.71B 1.90B 439.00M 595.00M
Retained Earnings Growth - 1,081.48% 86.83% 43.29% 35.48% 38.89% 6.35% 11.29% -76.92% 35.54%

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 $1.26 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 168.00M 302.00M 319.00M 364.00M 395.00M 480.00M 202.00M 327.00M -1.20B 226.00M
divided by
Revenue 9.63B 8.75B 11.58B 12.11B 10.10B 9.26B 7.92B 7.42B 6.37B 5.10B
Net Profit Margin 1.74% 3.45% 2.75% 3.01% 3.91% 5.18% 2.55% 4.41% -18.82% 4.43%

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 $15.40 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
2006200720082009201020112012201320142015
Gross Profit 348.00M 520.00M 761.00M 757.00M 826.00M 9.26B 669.00M 718.00M -65.00M 325.00M
divided by
Revenue 9.63B 8.75B 11.58B 12.11B 10.10B 9.26B 7.92B 7.42B 6.37B 5.10B
Gross Margin 3.61% 5.95% 6.57% 6.25% 8.18% 100.00% 8.45% 9.68% -1.02% 6.38%

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.

18.94% 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
2006200720082009201020112012201320142015
Capital Expenditure 57.00M 43.00M 37.00M 41.00M 66.00M 83.00M 75.00M 78.00M 53.00M 10.00M
divided by
Net Income 168.00M 302.00M 319.00M 364.00M 395.00M 480.00M 202.00M 327.00M -1.20B 226.00M
Capital Expenditure Ratio 33.93% 14.24% 11.60% 11.26% 16.71% 17.29% 37.13% 23.85% -4.42% 4.42%

Strong Dividend History over the past 10 years

KBR has consistently distributed a dividend for the past 8 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
2006200720082009201020112012201320142015
Dividend Paid - - 53.00M 32.00M 32.00M 93.00M 73.00M 144.00M 108.00M 75.00M
divided by
Shares Outstanding 140.00M 169.00M 167.00M 161.00M 157.00M 151.00M 149.00M 149.00M 146.00M 144.00M
Dividend Paid Per Share - - 0.32 0.20 0.20 0.62 0.49 0.97 0.74 0.52
Price at Year End 25.25 37.76 14.83 19.19 30.31 27.87 29.17 31.09 17.25 16.97
Dividend Yield - - 2.14% 1.04% 0.67% 2.21% 1.68% 3.11% 4.29% 3.07%

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
2006200720082009201020112012201320142015
Shares Outstanding 140.00M 169.00M 167.00M 161.00M 157.00M 151.00M 149.00M 149.00M 146.00M 144.00M
Stock Bought Back - -17.16% 1.20% 3.73% 2.55% 3.97% 1.34% - 2.05% 1.39%
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