KBR Stock Analysis, Valuation (NYSE:KBR)

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$17.84 $0.04 (0.22%) KBR stock closing price Sep 21, 2017 (Closing)
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KBR
Updated on : Sep 20, 2017
previous close
KBR 17.9 (0%)
S&P 500 2508.2 (0%)
Closing Price On: Sep 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Engineering R and D Services
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-12.2%
Operating Profit
Operating Margin:
1.5%
Sector Average:
7.5%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Cash Flow
Operating cash flow:
$325M
Net Income:
$77M
Dividend Yield
KBR dividend yield:
1.79%
PROS      CONS
Cash Flow
FCF Margin
PS Valuation
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
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:
-1.9%
Return on Equity:
-3.9%
Free Cash Flow Margin:
29.6%
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KBR Stock Analysis

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View KBR stock analysis video. This is our analyst opinion covering the buy and sell arguments for KBR stock.

KBR, Inc. Stock Rating 2/5

Our KBR stock opinion is based on fundamentals of the company. This KBR stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy KBR stock?

  • The company has an operating cash flow which is 4.2 times the net income.
  • When compared with the Engineering R and D Services industry average PS ratio of 0.9, the price-to-sales ratio of 0.6 for KBR stock is attractive.
  • KBR has a healthy FCF (Free Cash Flow) margin of 29.6%.

Should you sell KBR stock?

  • Revenue declined at a CAGR of -12.2% over the last 5 years.
  • KBR had an unimpressive average operating margin of 1.5% during the Last Twelve Months (LTM).
  • KBR posted an average Net loss of -0.8% in the last twelve months.
  • Trading at a PE ratio of 33.7, KBR stock is overvalued in comparison to industry average multiple of 20.3.
  • KBR has a negative ROIC (Return on Invested Capital) of -1.9%.
  • KBR has a negative ROE (Return On Equity) of -3.9%, indicating the company is not profitable.

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