KBR Inc.
Find Ratings ReportsKBR INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. KBR INC has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 14.62% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 1730.0 | 1608.0 |
EBITDA ($mil) | 160.0 | 136.0 |
EBIT ($mil) | 123.0 | 98.0 |
Net Income ($mil) | 21.0 | 93.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 304.0 | 389.0 |
Total Assets ($mil) | 5565.0 | 5566.0 |
Total Debt ($mil) | 2077.0 | 2000.0 |
Equity ($mil) | 1383.0 | 1620.0 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 16.07 | 14.99 |
EBITDA Margin | 9.24 | 8.45 |
Operating Margin | 7.11 | 6.09 |
Sales Turnover | 1.25 | 1.18 |
Return on Assets | -4.76 | 3.41 |
Return on Equity | -19.16 | 11.73 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.05 | 0.96 |
Debt/Capital | 0.6 | 0.55 |
Interest Expense | 30.0 | 23.0 |
Interest Coverage | 4.1 | 4.26 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 135.07 | 136.51 |
Div / share | 0.14 | 0.12 |
EPS | 0.15 | 0.62 |
Book value / share | 10.24 | 11.87 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1396531.0 | 1723978.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 5.92 indicates a premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 13.30. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, KBR INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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KBR NM | Peers 40.26 | KBR 24.74 | Peers 33.12 | |||||||||||||||||||||
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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KBR 15.50 | Peers 25.54 | KBR NA | Peers 6.56 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. KBR is trading at a significant discount 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. |
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Price/Book |
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Earnings Growth |
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KBR 5.92 | Peers 13.30 | KBR -269.42 | Peers 3.25 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. KBR is trading at a significant discount 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. |
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Price/Sales |
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Sales Growth |
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KBR 1.18 | Peers 4.53 | KBR 5.97 | Peers 6.63 | |||||||||||||||||||||
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 significant discount to its subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. KBR is keeping pace with its peers on the basis of sales growth. |
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