Descripción de la empresa
KBR, Inc. operates as a provider of scientific, technology, and engineering solutions serving both government entities and commercial clients across the globe. The company functions within the Industrials sector, specifically classified under the Engineering & Construction industry, which encompasses the design, planning, and execution of complex infrastructure projects. With a market capitalization of $4.70B, annual revenue of $7.79B, and an employee base of 36,000, the firm demonstrates significant scale within its operational niche. These financial metrics indicate that KBR maintains a substantial presence in the market, allowing it to undertake large-scale contracts that require extensive technical expertise and resource allocation. The combination of a broad employee count and multi-billion dollar revenue stream suggests the company possesses the capacity to diversify its project portfolio across various global regions and government agencies.
Salud financiera
KBR reported a trailing twelve-month revenue of $7.79B, with corresponding net income of $450.00M and EBITDA of $685.00M, highlighting a significant gap between total revenue and final profit that reflects the company's substantial cost structure. The difference between the $7.79B revenue and the $450.00M net income indicates operating expenses, including overhead, labor costs, and project-specific expenditures, that consume a considerable portion of gross receipts before reaching the bottom line. The company generated free cash flow of $298.25M, a figure that provides essential financial flexibility for capital expenditures, debt repayment, or potential strategic acquisitions without relying solely on external financing. Analyzing the margin structure reveals a gross margin of 14.8%, an operating margin of 7.6%, and a profit margin of 5.3%, all of which suggest a capital-intensive business model where profitability is driven by operational efficiency and cost control rather than high markup pricing. Regarding liquidity and leverage, the firm holds cash of $511.00M against total debt of $2.90B, resulting in a debt-to-equity ratio of 191.73% that characterizes a highly leveraged balance sheet typical of the construction and engineering sectors. The current ratio stands at 1.22, indicating that the company possesses sufficient current assets to cover its short-term liabilities, though the buffer is relatively tight given the cyclical nature of its business. Furthermore, the return on equity of 30.7% and return on assets of 5.4% demonstrate that management is utilizing shareholder capital and total asset base effectively to generate returns, with the elevated ROE partially attributable to the high leverage levels present on the balance sheet.
Evaluación de valoración
KBR currently trades with a trailing P/E ratio of 10.60 and a forward P/E of 8.65, implying that the market expects earnings growth in the future that will compress the valuation multiple compared to historical performance. The price-to-book ratio of 3.11 indicates that the stock is trading at a premium relative to its book value, suggesting investors are pricing in growth potential, intangible assets, or a perceived scarcity of similar engineering firms. Alternative valuation metrics such as a price-to-sales ratio of 0.60 and an EV/EBITDA of 10.33 provide context that the company is valued at a discount relative to its revenue base, while the EV/EBITDA reflects a moderate multiple for an industrials company with significant debt obligations. The stock's price range over the last year spans from a low of $36.19 to a high of $56.78, and without the current share price explicitly listed in the provided facts, the valuation context is derived from these established boundaries and the forward multiple expansion implied by the P/E metrics. A beta of 0.44 reveals that the stock exhibits low volatility relative to the broader market, moving with significantly less sensitivity to general market fluctuations, which may appeal to risk-averse investors seeking stability within the industrials sector.
Growth & Income
The company's revenue growth stood at -10.0% year-over-year, while earnings growth reached 52.4% year-over-year, indicating that earnings are expanding at a rate far exceeding revenue performance, likely driven by cost reductions, margin expansion, or one-time income adjustments rather than top-line volume increases. As a dividend payer, KBR offers a yield of 1.8% with a payout ratio of 18.9%, a conservative distribution level that is highly sustainable given the company's earnings generation and cash flow profile. The low payout ratio suggests that the majority of earnings are retained within the company to fund operations, repay debt, or invest in technology solutions, rather than being distributed entirely to shareholders. Overall, the growth and income profile presents a scenario of decoupled revenue and earnings metrics combined with a conservative dividend policy, reflecting a balance between providing income to shareholders and retaining capital for internal strategic needs.