KBR, Inc.
KBR, Inc. Fundamental Analysis
KBR, Inc. (KBR) shows strong financial fundamentals with a PE ratio of 11.37, profit margin of 5.30%, and ROE of 28.27%. The company generates $7.7B in annual revenue with strong year-over-year growth of 11.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KBR's fundamental strength across five key dimensions:
Efficiency Score
WeakKBR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKBR trades at attractive valuation levels.
Growth Score
ModerateKBR shows steady but slowing expansion.
Financial Health Score
ModerateKBR shows balanced financial health with some risks.
Profitability Score
ModerateKBR maintains healthy but balanced margins.
Key Financial Metrics
Is KBR Expensive or Cheap?
P/E Ratio
KBR trades at 11.37 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KBR's PEG of 1.10 indicates fair valuation.
Price to Book
The market values KBR, Inc. at 3.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.14 times EBITDA. This is generally considered low.
How Well Does KBR Make Money?
Net Profit Margin
For every $100 in sales, KBR, Inc. keeps $5.30 as profit after all expenses.
Operating Margin
Core operations generate 9.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.27 in profit for every $100 of shareholder equity.
ROA
KBR, Inc. generates $6.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KBR, Inc. generates limited operating cash flow of $515.83M, signaling weaker underlying cash strength.
Free Cash Flow
KBR, Inc. produces free cash flow of $474.49M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.74 in free cash annually.
FCF Yield
KBR converts 10.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How KBR Stacks Against Its Sector Peers
| Metric | KBR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.37 | 25.83 | Better (Cheaper) |
| ROE | 28.27% | 1278.00% | Weak |
| Net Margin | 5.30% | -43774.00% (disorted) | Weak |
| Debt/Equity | 2.08 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.22 | 10.63 | Neutral |
| ROA | 6.30% | -1539613.00% (disorted) | Weak |
KBR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KBR, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.47%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
95.34%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
89.90%
Industry Style: Cyclical, Value, Infrastructure
High Growth