Breaking Down KBR, Inc. (KBR) Financial Health: Key Insights for Investors

Breaking Down KBR, Inc. (KBR) Financial Health: Key Insights for Investors

US | Industrials | Engineering & Construction | NYSE

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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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