KBR Stock Analysis, Valuation (NYSE:KBR)

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$17.96 $0.15 (0.83%) KBR stock closing price Feb 16, 2018 (Closing)
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KBR
Updated on : Feb 16, 2018
previous close
KBR 18 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Engineering R and D Services
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-11.5%
Operating Profit
Operating Margin:
4.7%
Sector Average:
7.8%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$28M
Net Income:
$45M
Dividend Yield
KBR dividend yield:
1.78%
PROS      CONS
PS Valuation
Recent Growth
Long Term Growth
Cash Flow
ROIC
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
KBR PS :
0.6
Industry PS :
1
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.7%
Return on Equity:
8.4%
Free Cash Flow Margin:
2.7%
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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 2.5/5

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 Q3 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 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 1.

Should you sell KBR stock?

  • KBR sales declined by -3.6% year on year in 2017 Q3.
  • The company saw an average annual sales decline of -11.5% in sales over the last 5 years.
  • The company has an operating cash flow which is 0.6 times the net income. This is not a healthy sign.
  • Trading at a PE ratio of 31, KBR stock is overvalued in comparison to industry average multiple of 21.1.
  • KBR has a low ROIC (Return on Invested Capital) of 4.7%.

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.