KBR : NYSE : Services
$15.48 -0.02 | -0.13%
Today's Range: 15.26 - 15.59
Avg. Daily Volume: 1852600.0
04/27/17 - 4:03 PM ET

Financial Analysis

KBR INC's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly decreased 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 average liquidity. Currently, the Quick Ratio is 1.26 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 28.92% 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 FY16 Q4 FY15
Net Sales ($mil)1190.01080.0
EBITDA ($mil)-12.068.0
EBIT ($mil)-26.058.0
Net Income ($mil)-87.042.0

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)538.0885.0
Total Assets ($mil)4144.03412.0
Total Debt ($mil)693.061.0
Equity ($mil)757.01065.0

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin1.689.63
EBITDA Margin-1.06.29
Operating Margin-2.185.37
Sales Turnover1.031.49
Return on Assets-1.475.94
Return on Equity-8.0519.06
Debt Q4 FY16 Q4 FY15
Current Ratio1.311.31
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)142.8142.06
Div / share0.080.08
Book value / share5.37.5
Institutional Own % n/a n/a
Avg Daily Volume1809344.01601221.0


SELL. 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. For additional comparison, its price-to-book ratio of 2.80 indicates valuation on par with the S&P 500 average of 2.99 and a premium versus the industry average of 2.35. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KBR NM Peers 34.73   KBR 34.76 Peers 13.17

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.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
KBR 10.61 Peers 17.16   KBR NA Peers 0.64

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KBR 2.80 Peers 2.35   KBR -130.71 Peers 116.70

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 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KBR 0.50 Peers 0.62   KBR -16.25 Peers 10.42

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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