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KBR, Inc. (KBR)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$53.18 - $111.73$75.24
Multi-Stage$44.41 - $48.56$46.45
Blended Fair Value$60.84
Current Price$47.42
Upside28.31%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202320222021202020192018201720162015
DPS11.42%5.33%0.600.550.500.460.410.350.340.340.350.36
YoY Growth--9.72%9.09%8.20%12.96%17.39%4.55%-2.22%-2.17%-2.13%0.00%
Dividend Yield--1.27%0.86%0.91%0.85%1.07%1.69%1.69%2.12%2.33%2.31%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)380.00
(-) Cash Dividends Paid (M)83.00
(=) Cash Retained (M)297.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)76.0047.5028.50
Cash Retained (M)297.00297.00297.00
(-) Cash Required (M)-76.00-47.50-28.50
(=) Excess Retained (M)221.00249.50268.50
(/) Shares Outstanding (M)131.25131.25131.25
(=) Excess Retained per Share1.681.902.05
LTM Dividend per Share0.630.630.63
(+) Excess Retained per Share1.681.902.05
(=) Adjusted Dividend2.322.532.68
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.54%5.54%6.54%
Fair Value$53.18$75.24$111.73
Upside / Downside12.14%58.67%135.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)380.00401.07423.30446.77471.54497.69512.62
Payout Ratio21.84%35.47%49.11%62.74%76.37%90.00%92.50%
Projected Dividends (M)83.00142.27207.86280.29360.11447.92474.17

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.54%5.54%6.54%
Year 1 PV (M)129.17130.41131.64
Year 2 PV (M)171.35174.64177.97
Year 3 PV (M)209.78215.85222.05
Year 4 PV (M)244.70254.20263.97
Year 5 PV (M)276.34289.81303.80
PV of Terminal Value (M)4,797.265,031.125,274.03
Equity Value (M)5,828.596,096.046,373.46
Shares Outstanding (M)131.25131.25131.25
Fair Value$44.41$46.45$48.56
Upside / Downside-6.35%-2.05%2.40%

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