KBR Stock Analysis, Valuation (NYSE:KBR)

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$17.1 $0.05 (0.29%) KBR stock closing price Apr 18, 2018 (Closing)
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KBR
Updated on : Apr 18, 2018
previous close
KBR 17.1 (0%)
S&P 500 2708.6 (0%)
Closing Price On: Apr 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Engineering R and D Services
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-12%
Operating Profit
Operating Margin:
6.4%
Sector Average:
7.5%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
508M
Debt/Equity Ratio:
 0.42
Compared to the industry
Cash Flow
Operating cash flow:
-$45M
Net Income:
$275M
Dividend Yield
KBR dividend yield:
1.87%
PROS      CONS
Low Debt Burden
ROE
PE Valuation
PS Valuation
Recent Growth
Long Term Growth
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
KBR PS :
0.6
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
9.2%
Return on Equity:
49%
Free Cash Flow Margin:
-5.2%
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KBR Stock Analysis

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Take a look at Amigobulls KBR stock analysis video. This is our analyst opinion covering the buy and sell arguments for KBR stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

KBR, Inc. Stock Rating 3.2/5

Amigobulls KBR stock analysis takes into account various financial ratios like relative valuation, KBR revenue, growth and return on equity based on latest quarter 2017 Q4 financial statements. We also check KBR dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for KBR valuation analysis. KBR stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy KBR stock?

  • KBR has a lower debt burden than its peers in the Construction sector, with a debt/equity ratio of  0.42.
  • The KBR stock currently trades at a price to earnings ratio of 11.8. We rate this as a positive, compared to the industry average of 21.
  • KBR stock is trading at a favorable price to sales multiple of 0.6 as against the Engineering R and D Services industry average multiple of 0.9.
  • The LTM ROE of 49% for KBR is attractive.

Should you sell KBR stock?

  • KBR revenue saw a decline of -21.3% YoY in 2017 Q4.
  • The company saw an average annual sales decline of -12% in sales over the last 5 years.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -5.2%.

Comments on this video and KBR stock

Amigobulls KBR stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of KBR stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, KBR revenue growth and profit or net income are two main metrics which help in identifying whether KBR stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.