KBR Stock Analysis, Valuation (NYSE:KBR)

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$18.03 $0.29 (1.58%) KBR stock closing price Jun 21, 2018 (Closing)

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 2018 Q1 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?

  • With a debt/equity ratio of 0.36, KBR is comparatively less leveraged than its peers in the -sectordesc- sector.
  • The price to earnings multiple of 12.1 is attractive when compared with the sector average PE ratio of 20.
  • The lower PS ratio 0.6 for KBR stock versus Construction sector average of 0.9 is a positive for the company.
  • KBR generates a high return on invested capital of 12.5.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for KBR at 50.4.

Should you sell KBR stock?

  • KBR sales shrank by -6.1% year-over-year in 2018-03.
  • The company saw an average annual sales decline of -12 in sales over the last 5 years.
  • Operating cash flows are negative.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -13.4.

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.