KBR : NYSE : Services
$14.85 up 0.18 | 1.23%
Today's Range: 14.61 - 15.06
Avg. Daily Volume: 2299200.0
08/22/17 - 4:03 PM ET

Financial Analysis


KBR INC's gross profit margin for the second quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. KBR INC has average liquidity. Currently, the Quick Ratio is 1.17 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 29.29% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)1094.01009.0
EBITDA ($mil)84.051.0
EBIT ($mil)70.041.0
Net Income ($mil)77.047.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)491.0804.0
Total Assets ($mil)3581.03432.0
Total Debt ($mil)510.050.0
Equity ($mil)823.01164.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin11.158.33
EBITDA Margin7.675.05
Operating Margin6.44.06
Sales Turnover1.251.25
Return on Assets-1.05.41
Return on Equity-4.3715.97
Debt Q2 FY17 Q2 FY16
Current Ratio1.251.31
Debt/Capital0.380.04
Interest Expense5.02.0
Interest Coverage14.020.5


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)139.88142.48
Div / share0.080.08
EPS0.540.32
Book value / share5.888.17
Institutional Own % n/a n/a
Avg Daily Volume2295458.02226485.0

Valuation


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 2.54 indicates a discount versus the S&P 500 average of 3.02 and a premium versus the industry average of 1.99. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KBR NM Peers 25.78   KBR 7.42 Peers 16.63

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KBR 11.23 Peers 18.33   KBR NA Peers 0.94

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KBR 2.54 Peers 1.99   KBR -119.37 Peers 209.69

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KBR 0.47 Peers 0.56   KBR 4.17 Peers 11.19

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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