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KBR Inc
KBR : NYSE : Services
$14.81 up0.20 | 1.37%
Today's Range: 14.44 - 14.89
Avg. Daily Volume: 1,507,700
05/06/16 - 4:01 PM ET

Financial Analysis


KBR INC's gross profit margin for the first quarter of its fiscal year 2016 has significantly increased 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 1.24 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 27.98% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)996.01436.0
EBITDA ($mil)43.042.0
EBIT ($mil)34.031.0
Net Income ($mil)42.044.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)824.0758.0
Total Assets ($mil)3370.03883.0
Total Debt ($mil)60.069.0
Equity ($mil)1125.0879.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin7.735.64
EBITDA Margin4.312.92
Operating Margin3.412.16
Sales Turnover1.381.59
Return on Assets5.96-30.26
Return on Equity17.86-133.67
Debt Q1 FY16 Q1 FY15
Current Ratio1.331.23
Debt/Capital0.050.07
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)142.41144.23
Div / share0.080.08
EPS0.30.3
Book value / share7.96.09
Institutional Own % n/a n/a
Avg Daily Volume1471235.01454076.0

Valuation


HOLD. KBR INC's P/E ratio indicates a significant discount compared to an average of 28.59 for the Construction & Engineering industry and a significant discount compared to the S&P 500 average of 23.87. For additional comparison, its price-to-book ratio of 1.97 indicates a discount versus the S&P 500 average of 2.72 and a discount versus the industry average of 2.04. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, KBR INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KBR 11.11 Peers 28.59   KBR 16.69 Peers 12.86

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KBR is trading at a significant discount to its peers.

 

Premium. 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 premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KBR 12.70 Peers 14.89   KBR NM Peers 0.76

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 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.

KBR's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KBR 1.97 Peers 2.04   KBR 117.24 Peers -43.90

Average. 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 valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

KBR is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KBR 0.48 Peers 0.52   KBR -24.53 Peers 3.12

Average. 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 valuation on par with 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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