KBR INC's gross profit margin for the fourth quarter of its fiscal year 2014 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. KBR INC has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 61.75% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||1417.0||1680.0|
|Net Income ($mil)||-1241.0||-56.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||987.0||1107.0|
|Total Assets ($mil)||4199.0||5438.0|
|Total Debt ($mil)||73.0||88.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||-10.23||1.55|
|Return on Assets||-30.05||1.37|
|Return on Equity||-133.97||3.04|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||144.84||148.2|
|Div / share||0.08||0.08|
|Book value / share||6.5||16.62|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2111266.0||2294009.0|
SELL. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 2.69 indicates valuation on par with the S&P 500 average of 2.81 and a premium versus the industry average of 1.88. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, KBR INC proves to trade at a premium to investment alternatives within the industry.
|KBR NM||Peers 19.01||KBR 14.88||Peers 25.82|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
KBR's P/E is negative making this valuation measure meaningless.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
KBR is trading at a significant discount to its peers.
|KBR 13.65||Peers 13.61||KBR NA||Peers 7.69|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
KBR is trading at a premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|KBR 2.69||Peers 1.88||KBR -1842.00||Peers -105.34|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
KBR is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, KBR is expected to significantly trail its peers on the basis of its earnings growth rate.
|KBR 0.40||Peers 0.49||KBR -11.76||Peers 4.82|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
KBR is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
KBR significantly trails its peers on the basis of sales growth
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