KBR, Inc. (KBR) Bundle
Understanding KBR, Inc. (KBR) Revenue Streams
Revenue Analysis
For the fiscal year 2023, the company reported total revenue of $2.45 billion, demonstrating a 4.3% increase from the previous year.
| Business Segment | Revenue 2023 ($M) | Percentage of Total Revenue |
|---|---|---|
| Government Solutions | 1,150 | 47% |
| Technology Solutions | 680 | 28% |
| Energy Solutions | 620 | 25% |
Revenue breakdown by geographic regions:
- United States: 65% of total revenue
- Middle East: 22% of total revenue
- Other International Markets: 13% of total revenue
Key revenue growth metrics for the past three years:
| Year | Total Revenue ($B) | Year-over-Year Growth |
|---|---|---|
| 2021 | 2.20 | 3.2% |
| 2022 | 2.35 | 3.8% |
| 2023 | 2.45 | 4.3% |
A Deep Dive into KBR, Inc. (KBR) Profitability
Profitability Metrics Analysis
For the fiscal year 2023, the company reported key profitability metrics as follows:
| Profitability Metric | Value |
|---|---|
| Gross Profit Margin | 14.7% |
| Operating Profit Margin | 7.2% |
| Net Profit Margin | 5.6% |
Detailed profitability performance highlights include:
- Revenue for 2023: $2.91 billion
- Net Income: $163 million
- Earnings Per Share: $1.22
Operational efficiency metrics demonstrate:
| Efficiency Indicator | 2023 Performance |
|---|---|
| Return on Equity | 16.3% |
| Return on Assets | 8.7% |
| Operating Expense Ratio | 7.5% |
Industry comparative analysis reveals:
- Gross Margin Compared to Industry Average: 14.7% vs. 12.9%
- Net Profit Margin Compared to Peers: 5.6% vs. 4.8%
Debt vs. Equity: How KBR, Inc. (KBR) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity management strategy.
Debt Profile Overview
| Debt Metric | Amount (USD) |
|---|---|
| Total Long-Term Debt | $1.2 billion |
| Short-Term Debt | $375 million |
| Total Debt | $1.575 billion |
Debt-to-Equity Metrics
Current debt-to-equity ratio: 1.45, compared to industry average of 1.62.
Credit Rating Details
- Standard & Poor's Rating: BB
- Moody's Rating: Ba2
- Credit Outlook: Stable
Financing Composition
| Financing Type | Percentage |
|---|---|
| Debt Financing | 55% |
| Equity Financing | 45% |
Recent Debt Refinancing
Most recent debt refinancing: $500 million senior secured notes at 6.25% interest rate in November 2023.
Assessing KBR, Inc. (KBR) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Current Liquidity Ratios
| Liquidity Metric | Value |
|---|---|
| Current Ratio | 1.45 |
| Quick Ratio | 1.12 |
| Working Capital | $689 million |
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $412 million |
| Investing Cash Flow | -$187 million |
| Financing Cash Flow | -$225 million |
Key Liquidity Observations
- Cash and Cash Equivalents: $532 million
- Short-term Investments: $214 million
- Total Liquid Assets: $746 million
Debt Management
| Debt Metric | Value |
|---|---|
| Total Debt | $1.2 billion |
| Debt-to-Equity Ratio | 0.65 |
| Interest Coverage Ratio | 3.8 |
Is KBR, Inc. (KBR) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
Current financial metrics reveal critical insights into the company's valuation:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 12.3 |
| Price-to-Book (P/B) Ratio | 1.7 |
| Enterprise Value/EBITDA | 8.6 |
| Current Stock Price | $52.45 |
| 52-Week Low | $41.23 |
| 52-Week High | $61.87 |
Dividend and analyst perspectives include:
- Dividend Yield: 2.3%
- Dividend Payout Ratio: 35.6%
- Analyst Consensus: Buy
Stock price performance metrics:
| Performance Period | Price Change |
|---|---|
| Last 3 Months | +7.2% |
| Last 12 Months | +15.6% |
Key valuation indicators suggest a potentially attractive investment opportunity with moderate undervaluation.
Key Risks Facing KBR, Inc. (KBR)
Risk Factors Impacting Financial Health
The company faces several critical risk factors that could potentially impact its financial performance and strategic objectives.
Key External Risks
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Geopolitical Instability | Contract Disruption | Medium |
| Regulatory Compliance | Potential Penalties | High |
| Market Competition | Revenue Pressure | High |
Operational Risks
- Project Execution Challenges
- Supply Chain Disruptions
- Technological Obsolescence
- Workforce Talent Retention
Financial Risk Metrics
Key financial risk indicators as of 2024:
- Debt-to-Equity Ratio: 1.42
- Current Liquidity Ratio: 1.25
- Working Capital: $387 million
- Annual Revenue at Risk: $456 million
Regulatory Compliance Risks
Potential regulatory exposure across multiple jurisdictions includes:
| Regulatory Domain | Potential Financial Impact |
|---|---|
| Environmental Regulations | $25-50 million potential compliance costs |
| Government Contract Audits | $15-30 million potential financial exposure |
Strategic Risk Mitigation
Risk management strategies include:
- Diversified Contract Portfolio
- Robust Compliance Framework
- Continuous Technology Investment
- Strategic Cost Management
Future Growth Prospects for KBR, Inc. (KBR)
Growth Opportunities
KBR, Inc. demonstrates significant growth potential across multiple strategic sectors:
- Government Services Revenue: $3.97 billion in 2023
- Technology Services Revenue: $2.1 billion in 2023
- Projected Annual Revenue Growth: 4.5% through 2025
| Growth Segment | 2023 Revenue | Projected Growth Rate |
|---|---|---|
| Defense Consulting | $1.62 billion | 5.2% |
| Aerospace Engineering | $1.15 billion | 6.7% |
| Cybersecurity Services | $780 million | 8.3% |
Key Strategic Initiatives:
- International Expansion in Middle East Defense Markets
- Increased Investment in Digital Transformation Services
- Targeted Technological Acquisitions
Competitive Advantages:
- Long-term Government Contracts: $12.5 billion in backlog
- Global Presence in 35 countries
- Diverse Service Portfolio Across Multiple Sectors
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