Kbr, Inc. (NYSE: KBR)

Sector: Industrials Industry: Engineering & Construction CIK: 0001357615
Market Cap 5.79 Bn
P/B 3.96
P/E 15.24
P/S 0.72
ROIC (Qtr) 10.09
Div Yield % 1.81
Rev 1y % (Qtr) -0.31
Total Debt (Qtr) 2.85 Bn
Debt/Equity (Qtr) 1.95

About

KBR, Inc. (KBR), a Delaware corporation, is a prominent player in the science, technology, engineering, and logistics support solutions industry, serving governments and companies across the globe. The company's operations are primarily divided into two core business segments: Government Solutions and Sustainable Technology Solutions, with an additional non-core segment called Other. Government Solutions is the backbone of KBR's business, providing full-life cycle support solutions to defense, intelligence, space, aviation, and other programs...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 539M provide 11.72x coverage of short-term debt 46M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 3.23B provide exceptional 9.69x coverage of deferred revenue 334M, showing strong service capability backing.
  • Robust free cash flow of 468M exceeds capital expenditure of 47M by 9.96x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 3.23B provides 10.30x coverage of working capital 314M, indicating strong operational backing.
  • Operating cash flow of 515M fully covers other non-current liabilities 272M by 1.89x, showing strong long-term stability.

Bear case

  • Operating cash flow of 515M provides thin coverage of dividend payments of (83M) with a -6.20 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 539M provide limited coverage of acquisition spending of (5M), which is -107.80x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 468M represents just -93.60x of debt issuance (5M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 515M barely covers operating expenses of (7M) with a -73.57 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of 1.61B provide limited buffer against comprehensive income items of (896M), which is -1.79x, indicating elevated exposure to market risks.

Business Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Engineering & Construction
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PWR Quanta Services, Inc. 62.71 Bn 61.60 2.31 6.02 Bn
2 FER Ferrovial SE 48.08 Bn 14.25 5.05 -
3 FIX Comfort Systems Usa Inc 35.76 Bn 42.69 4.30 0.39 Bn
4 EME EMCOR Group, Inc. 29.29 Bn 25.91 1.80 0.42 Bn
5 APG APi Group Corp 17.37 Bn 111.36 2.27 3.05 Bn
6 MTZ Mastec Inc 17.01 Bn 51.39 1.24 2.77 Bn
7 J Jacobs Solutions Inc. 16.94 Bn 58.56 1.41 2.71 Bn
8 BLD TopBuild Corp 13.35 Bn 23.52 2.55 3.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.24 1.61
EV to Cash from Ops. EV/CFO 15.96 6.94
EV to Debt EV to Debt 2.89 11.81
EV to EBIT EV/EBIT 12.04 17.80
EV to EBITDA EV/EBITDA 11.15 13.77
EV to Free Cash Flow [EV/FCF] EV/FCF 17.57 55.77
EV to Market Cap EV to Market Cap 1.42 1.20
EV to Revenue EV/Rev 1.02 1.65
Price to Book Value [P/B] P/B 3.96 5.81
Price to Earnings [P/E] P/E 15.24 35.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.58 2.51
Dividend Payout Ratio % Div Payout % (Qtr) 22.20 25.81
Dividend per Basic Share Div per Share (Qtr) 0.65 0.24
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 17.64 4.05
Interest Coverage Int. cover (Qtr) 4.14 80.15
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 16.07 -166.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 16.67 637.72
Dividend Growth (1y) % Div 1y % (Qtr) 10.26 5.87
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 21.66 92.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.54 8.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 17.15 85.34
EBT Growth (1y) % EBT 1y % (Qtr) 14.35 42.07
EPS Growth (1y) % EPS 1y % (Qtr) 22.78 43.76
FCF Growth (1y) % FCF 1y % (Qtr) 4.23 -20.95
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.14 32.46
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.21 1.14
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.05
Cash Ratio Cash Ratio (Qtr) 0.30 0.38
Current Ratio Curr Ratio (Qtr) 1.18 1.55
Debt to Equity Ratio Debt/Equity (Qtr) 1.95 0.89
Interest Cover Ratio Int Coverage (Qtr) 4.14 80.15
Times Interest Earned Times Interest Earned (Qtr) 4.14 80.15
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 10.60 0.40
EBIT Margin % EBIT Margin % (Qtr) 8.47 -2.31
EBT Margin % EBT Margin % (Qtr) 6.43 -4.59
Gross Margin % Gross Margin % (Qtr) 14.30 20.38
Net Profit Margin % Net Margin % (Qtr) 4.70 -5.96