Latest Ratios: P/E Ratio 10.8x · EV/EBITDA 9.5x · ROE 27.9%. (2002–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.4B | $5.2B | $7.9B | $7.5B | $8.2B | $6.7B | $4.4B | $4.3B | $2.1B | $2.8B | $2.4B |
| Enterprise Value | $7.0B | $7.8B | $10.5B | $9.4B | $9.9B | $8.6B | $5.9B | $5.3B | $3.0B | $2.9B | $2.6B |
| P/E Ratio → | 10.84 | 12.62 | 21.07 | — | 41.90 | 250.63 | — | 21.48 | 7.63 | 6.50 | — |
| P/S Ratio | 0.57 | 0.67 | 1.02 | 1.08 | 1.25 | 0.91 | 0.76 | 0.77 | 0.44 | 0.67 | 0.56 |
| P/B Ratio | 2.97 | 3.46 | 5.39 | 5.37 | 5.05 | 3.99 | 2.73 | 2.34 | 1.25 | 2.29 | 3.18 |
| P/FCF | 9.16 | 10.84 | 20.54 | 29.80 | 25.34 | 27.07 | 12.66 | 18.35 | 14.46 | 15.11 | 47.40 |
| P/OCF | 8.42 | 9.97 | 17.12 | 22.60 | 20.80 | 24.15 | 11.97 | 16.92 | 12.97 | 14.49 | 38.85 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.01 | 1.36 | 1.35 | 1.51 | 1.17 | 1.03 | 0.95 | 0.61 | 0.70 | 0.61 |
| EV / EBITDA | 9.55 | 10.65 | 12.87 | 15.90 | 20.70 | 22.76 | 34.54 | 11.45 | 5.64 | 9.38 | 35.38 |
| EV / EBIT | 12.39 | 10.17 | 16.08 | — | 26.78 | 37.97 | 102.41 | 14.54 | 6.48 | 10.92 | 56.15 |
| EV / FCF | — | 16.29 | 27.35 | 37.31 | 30.57 | 34.60 | 17.12 | 22.62 | 20.23 | 15.82 | 51.66 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 14.8% | 14.8% | 14.2% | 14.0% | 12.6% | 11.0% | 11.5% | 11.6% | 11.9% | 10.5% | 2.6% |
| Operating Margin | 7.3% | 7.3% | 8.6% | 6.4% | 5.2% | 3.1% | 1.0% | 6.4% | 9.5% | 6.3% | 0.7% |
| Net Profit Margin | 5.3% | 5.3% | 4.8% | -3.8% | 2.9% | 0.4% | -1.2% | 3.6% | 5.7% | 10.4% | -1.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 27.9% | 27.9% | 26.2% | -17.5% | 11.5% | 1.6% | -4.2% | 11.3% | 19.1% | 43.9% | -6.8% |
| ROA | 6.3% | 6.3% | 6.1% | -4.8% | 3.2% | 0.5% | -1.3% | 3.9% | 6.4% | 11.1% | -1.6% |
| ROIC | 10.4% | 10.4% | 13.5% | 10.2% | 7.5% | 5.2% | 1.4% | 10.0% | 17.9% | 17.2% | 3.4% |
| ROCE | 11.6% | 11.6% | 14.9% | 11.6% | 8.5% | 5.4% | 1.4% | 9.6% | 15.0% | 10.2% | 1.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.07 | 2.07 | 1.95 | 1.47 | 1.21 | 1.26 | 1.14 | 0.79 | 0.74 | 0.42 | 0.93 |
| Debt / EBITDA | 4.24 | 4.24 | 3.49 | 3.49 | 4.13 | 5.62 | 10.66 | 3.13 | 2.40 | 1.63 | 9.49 |
| Net Debt / Equity | — | 1.74 | 1.79 | 1.35 | 1.04 | 1.11 | 0.96 | 0.54 | 0.50 | 0.11 | 0.29 |
| Net Debt / EBITDA | 3.56 | 3.56 | 3.21 | 3.20 | 3.54 | 4.95 | 9.00 | 2.16 | 1.61 | 0.42 | 2.92 |
| Debt / FCF | — | 5.44 | 6.82 | 7.51 | 5.23 | 7.52 | 4.46 | 4.27 | 5.77 | 0.70 | 4.26 |
| Interest Coverage | 4.89 | 4.89 | 4.55 | -0.44 | 4.26 | 2.83 | 0.70 | 3.71 | 7.00 | 12.76 | 3.54 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.22 | 1.22 | 1.05 | 1.05 | 0.96 | 1.15 | 1.12 | 1.34 | 1.38 | 1.33 | 1.31 |
| Quick Ratio | 1.22 | 1.22 | 1.05 | 1.05 | 0.96 | 1.15 | 1.12 | 1.34 | 1.38 | 1.33 | 1.31 |
| Cash Ratio | 0.30 | 0.30 | 0.13 | 0.11 | 0.15 | 0.14 | 0.20 | 0.30 | 0.30 | 0.35 | 0.31 |
| Asset Turnover | — | 1.18 | 1.16 | 1.25 | 1.18 | 1.18 | 1.01 | 1.05 | 0.97 | 1.14 | 1.03 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | 831.20 |
| Days Sales Outstanding | — | 66.05 | 65.06 | 62.49 | 67.73 | 82.36 | 69.56 | 77.03 | 84.77 | 79.11 | 86.20 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.9% | 1.6% | 1.0% | 1.0% | 0.8% | 0.9% | 1.2% | 1.1% | 2.1% | 1.6% | 1.9% |
| Payout Ratio | 20.2% | 20.2% | 21.1% | — | 34.7% | 225.9% | — | 22.8% | 15.7% | 10.4% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.2% | 7.9% | 4.7% | — | 2.4% | 0.4% | — | 4.7% | 13.1% | 15.4% | — |
| FCF Yield | 10.9% | 9.2% | 4.9% | 3.4% | 3.9% | 3.7% | 7.9% | 5.4% | 6.9% | 6.6% | 2.1% |
| Buyback Yield | 7.5% | 6.3% | 2.8% | 1.8% | 2.5% | 1.2% | 1.2% | 0.1% | 0.1% | 1.9% | 0.2% |
| Total Shareholder Yield | 9.3% | 7.9% | 3.8% | 2.8% | 3.3% | 2.1% | 2.4% | 1.2% | 2.2% | 3.5% | 2.1% |
| Shares Outstanding | — | $129M | $134M | $135M | $156M | $141M | $142M | $142M | $141M | $141M | $142M |
Includes 30+ ratios · 23 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying KBR stock.
KBR, Inc.'s current P/E ratio is 10.8x. The historical average is 20.2x. This places it at the 33th percentile of its historical range.
KBR, Inc.'s current EV/EBITDA is 9.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.8x.
KBR, Inc.'s return on equity (ROE) is 27.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 6.1%.
Based on historical data, KBR, Inc. is trading at a P/E of 10.8x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
KBR, Inc.'s current dividend yield is 1.87% with a payout ratio of 20.2%.
KBR, Inc. has 14.8% gross margin and 7.3% operating margin.
KBR, Inc.'s Debt/EBITDA ratio is 4.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
EPS miss and margin pressure
Metrics are mathematically derived from official filings.
Margin Ceiling Persists Amid Mix Shift
Gross margin hovered near 14.8% in 2026Q2, with operating margin at 8.7%, below the 9.9% peak seen in 2025Q2. According to recent financial statements, the cost-plus nature of government contracts appears to cap margin expansion.
The stability of gross margin around 14-15% over ten quarters suggests that the revenue mix between low-margin government services and high-margin STS licensing has not shifted materially. Operating margin's inability to exceed 10% despite revenue stability indicates that SG&A overhead remains sticky, likely due to the specialized workforce required. The recent EPS miss of $0.99 versus $1.02 consensus may reflect these margin constraints, though the impact of non-recurring items warrants further investigation.
ROIC Stagnates Below Cost of Capital
ROIC has remained in a narrow 2.6%-4.2% band over the past ten quarters, with 2026Q2 at 3.1%. Based on reported figures, this suggests the company is not compounding returns on invested capital, likely due to goodwill-heavy acquisitions.
The persistently low ROIC, despite a stable asset turnover of ~0.30x, indicates that the returns are being diluted by the large intangible asset base from acquisitions. Goodwill now represents 40% of total assets, which may be suppressing ROIC relative to peers like Leidos (17.1%) and Booz Allen (18.6%). The modest improvement in ROE to 5.9% in 2026Q2 is driven by leverage rather than operational efficiency, as net margin remains below 5%.
Working Capital Efficiency Shows Strain
DSO rose to 66 days in 2026Q2 from 60 days a year earlier, while DPO remained stable near 40 days. According to recent SEC filings, the cash conversion cycle appears to be lengthening, potentially pressuring free cash flow.
The increase in DSO suggests that KBR is taking longer to collect on its government contracts, which may indicate a shift in contract terms or slower payment cycles from clients. With DPO flat, the working capital drag is not being offset by extended supplier terms. This is consistent with the volatile cash conversion observed in the cash flow statement, where operating cash flow to net income swung from 2.51x to 0.52x. The 1.7% FCF margin in 2026Q2, well below the 5.3% average, underscores the impact of working capital swings.
Leverage Creeps Higher on Acquisition Debt
D/E rose to 1.70 in 2026Q2 from 1.44 in 2024Q1, while D/EBITDA climbed to 13.14x from 10.09x. As reported in financial statements, interest coverage of 4.97x remains adequate but has weakened from 5.56x.
The increase in leverage appears tied to funding acquisitions, as total debt grew from $2.0B to $2.8B over the period. While the D/E ratio is not alarming, the D/EBITDA of 13.14x is elevated relative to peers like Leidos (8.17x) and Booz Allen (9.51x), suggesting a higher debt burden relative to cash earnings. Interest coverage of 4.97x indicates that debt service is still comfortable, but the trend warrants monitoring if EBITDA growth does not materialize.
Liquidity Buffer Thins Despite Stable Ratios
Current ratio improved to 1.15 in 2026Q2 from 1.05 in 2024Q4, but cash dropped from $500M to $312M. Based on reported figures, the liquidity position appears adequate yet tighter than prior quarters.
The current ratio's improvement is driven by a reduction in current liabilities rather than an increase in current assets, as cash has declined significantly. With a quick ratio of 1.15, the company does not rely heavily on inventory, which is consistent with its services model. However, the shrinking cash buffer reduces the margin of safety against working capital shocks, as evidenced by the negative $70M working capital change in 2026Q2. Investors should monitor whether the cash decline is a temporary deployment or a structural trend.
P/E Misleads on Earnings Quality
KBR's P/E of 11.55 appears cheap, but earnings quality is obscured by volatile non-operating items and acquisition-related intangibles. According to recent financial statements, EV/EBITDA of 9.94 provides a more stable valuation metric.
The P/E ratio is commonly misapplied to KBR because net income is subject to significant quarterly volatility from items like restructuring charges and gains on disposals, as seen in the EPS range of $0.55 to $0.90. Additionally, the goodwill-heavy balance sheet means that book value is not a reliable measure of economic assets, making P/B less meaningful. EV/EBITDA is more appropriate as it normalizes for capital structure and non-cash charges, but even this metric should be adjusted for the pass-through nature of government contracts, which inflate revenue and EBITDA. A better alternative is to focus on free cash flow yield, which at 9.76x P/FCF reflects the actual cash generation capacity.