KBR Stock Analysis, Valuation (NYSE:KBR)
KBR Stock Analysis
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. We see this as a positive signal.
- The lower PS ratio 0.6 for KBR stock versus Engineering R and D Services industry average of 0.9 is a positive for the company.
- The company has a good Free Cash Flow (FCF) margin of 29.6%.
Should you sell KBR stock?
- Revenue declined at a CAGR of -12.2% over the last 5 years.
- KBR had a poor average operating margin of 1.5% over the last 4 quarters.
- KBR registered an average TTM Net loss of -0.8%.
- The KBR stock currently trades at a PE of 33.7, which is expensive, compared to the industry average of 20.3.
- The company has a negative Return on Invested Capital of -1.9%, which is a red flag.
- KBR has a negative ROE (Return On Equity) of -3.9%, indicating the company is not profitable.