KBR

KBR Inc

TMT, Industrial/Transportation, Energy


Presented:05/03/2021
Price:$39.75
Cap:$5.61B
Current Price:$67.87
Cap:$9.03B

Presented

Date05/03/2021
Price$39.75
Market Cap$5.61B
Ent Value$6.94B
P/E Ratio72.05x
Book Value$11.65
Div Yield1.03%
Shares O/S141.22M
Ave Daily Vol1,571,814
Short Int6.21%

Current

Price$67.87
Market Cap$9.03B
KBR, Inc. engages in the provision of differentiated professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. It operates through the following segments: Government Solutions, Technology Solutions, Energy Solutions, Non-strategic Business, and Other. The Government Solutions segment provides full life-cycle support solutions to defense, space, aviation, and other programs and missions for military and other government agencies. The Technology Solutions segment combines KBR's proprietary technologies, equipment, and catalyst supply and associated knowledge-based services into a global business for refining, petrochemicals, inorganic, and specialty chemicals as well as gasification, syngas, ammonia, nitric acid, and fertilizers. The Energy Solutions segment provides full life-cycle support solutions across the upstream, midstream and downstream hydrocarbons markets. The Non-strategic Business segment represents the operations or activities which the company intends to exit upon completion of existing contracts. The Other segment includes corporate expenses and general and administrative expenses not allocated to the business segments above. The company was founded on March 21, 2006 and is headquartered in Houston, TX.

Publicly traded companies mentioned herein: KBR Inc (KBR)

Highlights

The presenter is long shares of KBR Inc (KBR) as it has undergone a major transformation from a risky E&C company into a government and sustainable technology solutions business. Most investors remember KBR as an E&C company that historically had been involved in risky LNG and petrochemical projects. Today, KBR has moved away from these risky end markets and 70% of the business is now government solutions and the remaining 30% is a sustainable technology business. Eventually, he believes KBR will be a must-own ESG company and sees the potential for a 15% - 20% IRR over the next few years with a lot of optionality. 

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Idea Discussion

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