KBR's stock has fallen 17% over the past six months to $33.73, underperforming the S&P 500's 6.1% gain. The company's backlog declined to $17.32 billion in the latest quarter, averaging a 1.2% year-on-year drop over the last two years, signaling weakening order momentum. Analysts project revenue growth of just 6.2% over the next 12 months, below the sector average, while its average operating margin of 6.9% over five years remains weak for an industrials business. The stock trades at 8.2 times forward earnings, but the report recommends avoiding KBR due to shaky fundamentals and instead suggests a stock tied to Taco Bell's parent company.
KBR IncBacklog declined 1.2% YoY on average over two years, signaling weakening order momentum.
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