Stock fact sheet · data as of
KBR, Inc. (KBR): fair value, margin of safety and Wheel Score
Industrials · Engineering & Construction · United States · Defensive
Is KBR undervalued?
At 36.44 (close of 16 Oct 2026), KBR trades 45% below the GLS average fair value of 65.77. That average comes from 9 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns KBR, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between DDM (9.71) and DCF (243.40). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files KBR under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for KBR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 243.40 | +568% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 31.11 | -15% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 53.86 | +48% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 13.35 | -63% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 50.96 | +40% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 80.75 | +122% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 71.73 | +97% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 9.71 | -73% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 37.10 | +2% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -23.96 | -166% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 45.50 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
KBR, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability KBR scores 5.2/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 9.0%, ROE 27.6%, ROA 6.3% - with debt at 2.08 times equity and a free-cash-flow yield of 7.6%. Debt of 2.08 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 1.81% at a payout ratio of 20%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Sustainable Technology Solutions 66%, Mission Technology Solutions 34% (quarter Q1 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 9.0% |
|---|---|---|---|
| GLS Moat | 5.2 / 10 | ROE | 27.6% |
| Debt / equity | 2.08 | ROA | 6.3% |
| Free-cash-flow yield | 7.6% | Payout ratio | 20% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 84: Prime
With a Wheel Score of 84, KBR, Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 13/20, Moat 8/15, Premium 20/20, Stability 18/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 39% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 11,593 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.8M shares a day on a market cap of $4.6B, with a beta of 0.47 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 45% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 8 / 15 | moat 5.2/10 | |
| Premium | 20 / 20 | implied volatility 39% | |
| Stability | 18 / 20 | 1.8M shares/day, $4.6B cap, beta 0.47 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
KBR, Inc. reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Engineering & Construction
The 12 companies below are the closest to KBR, Inc. by market cap within the Engineering & Construction industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ROAD Construction Partners, Inc. | 80.84 | 73.66 | -10% | 66Good | $4.6B |
| MYRG MYR Group Inc. | 285.57 | 266.09 | -7% | 71Good | $4.4B |
| GVA Granite Construction Incorporated | 108.78 | 92.37 | -18% | 45Weak | $4.8B |
| PRIM Primoris Services Corporation | 78.03 | 72.47 | -8% | 68Good | $4.2B |
| TPC Tutor Perini Corporation | 79.48 | 114.12 | +30% | 78Good | $4.2B |
| AGX Argan, Inc. | 367.16 | 392.92 | +7% | 69Good | $5.2B |
| ECG Everus Construction Group, Inc. | 111.66 | 117.18 | +5% | 69Good | $5.7B |
| EXPO Exponent, Inc. | 72.28 | 38.35 | -88% | 60Fair | $3.4B |
| LGN Legence Corp. Class A Common stock | 45.30 | 49.16 | +8% | 45Weak | $6.3B |
| FLR Fluor Corporation | 47.67 | 8.01 | -495% | 45Weak | $6.4B |
| STN Stantec Inc. | 67.11 | 98.56 | +32% | 86Prime | $7.5B |
| ACM Aecom | 59.09 | 51.70 | -14% | 64Fair | $7.6B |
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Start free See the Sunday ScanQuestions about KBR
Is KBR undervalued right now?
By the GLS models, yes: at 36.44 the stock is 45% below the average fair value of 65.77 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of KBR and what does it mean?
KBR scores 84 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for KBR?
65.77 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does KBR, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KBR have listed options, and how liquid are they?
Yes. The nightly snapshot found 204 listed contracts with 11,593 open interest across all expiries and implied volatility of 39% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.