KBR : NYSE : Services
$17.6 | %
Today's Range: 17.29 - 17.65
Avg. Daily Volume: 1740600.0
12/09/16 - 4:02 PM ET

Financial Analysis


KBR INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. KBR INC has average liquidity. Currently, the Quick Ratio is 1.08 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.

During the same period, stockholders' equity ("net worth") has increased by 13.13% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1073.01199.0
EBITDA ($mil)-58.059.0
EBIT ($mil)-70.049.0
Net Income ($mil)-63.055.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)569.0768.0
Total Assets ($mil)4242.03651.0
Total Debt ($mil)699.066.0
Equity ($mil)1111.0982.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin-2.248.09
EBITDA Margin-5.44.92
Operating Margin-6.524.09
Sales Turnover0.981.49
Return on Assets1.6-29.58
Return on Equity6.12-109.97
Debt Q3 FY16 Q3 FY15
Current Ratio1.151.29
Debt/Capital0.390.06
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)142.67144.26
Div / share0.080.08
EPS-0.440.38
Book value / share7.796.81
Institutional Own % n/a n/a
Avg Daily Volume1729887.01279950.0

Valuation


HOLD. KBR INC's P/E ratio indicates a discount compared to an average of 39.62 for the Construction & Engineering industry and a significant premium compared to the S&P 500 average of 25.45. For additional comparison, its price-to-book ratio of 2.20 indicates a discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 2.24. 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 36.43 Peers 39.62   KBR 17.54 Peers 14.61

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

KBR is trading at a valuation on par with 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 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 12.68 Peers 21.61   KBR NM Peers 0.44

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 significant 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.

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 2.20 Peers 2.24   KBR 106.30 Peers 19.37

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 0.59 Peers 0.63   KBR -23.47 Peers -0.71

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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