WORLD KINECT CORP (WKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WKC - US9814751064 - Common Stock
25.73 USD
-0.29 (-1.11%)
25.9 USD
+0.17 (+0.66%)
Overall WKC gets a fundamental rating of 4 out of 10. We evaluated WKC against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While WKC seems to be doing ok healthwise, there are quite some concerns on its profitability. WKC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- WKC had positive earnings in the past year.
- In the past year WKC had a positive cash flow from operations.
- In the past 5 years WKC has always been profitable.
- Each year in the past 5 years WKC had a positive operating cash flow.
1.2 Ratios
- WKC's Return On Assets of -7.21% is on the low side compared to the rest of the industry. WKC is outperformed by 79.71% of its industry peers.
- WKC has a worse Return On Equity (-27.00%) than 80.19% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.19%, WKC is in line with its industry, outperforming 55.56% of the companies in the same industry.
- WKC had an Average Return On Invested Capital over the past 3 years of 5.64%. This is significantly below the industry average of 21.94%.
- The 3 year average ROIC (5.64%) for WKC is below the current ROIC(6.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.21% | ||
| ROE | -27% | ||
| ROIC | 6.19% |
ROA(3y)1.04%
ROA(5y)1.36%
ROE(3y)3.98%
ROE(5y)4.31%
ROIC(3y)5.64%
ROIC(5y)5.14%
1.3 Margins
- WKC's Profit Margin has declined in the last couple of years.
- WKC has a Operating Margin of 0.63%. This is in the lower half of the industry: WKC underperforms 72.46% of its industry peers.
- WKC's Operating Margin has declined in the last couple of years.
- WKC has a worse Gross Margin (2.58%) than 76.33% of its industry peers.
- In the last couple of years the Gross Margin of WKC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.63% | ||
| PM (TTM) | N/A | ||
| GM | 2.58% |
OM growth 3Y5.98%
OM growth 5Y-7.61%
PM growth 3Y-12.2%
PM growth 5Y-19.95%
GM growth 3Y-1.08%
GM growth 5Y-4.22%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WKC is destroying value.
- The number of shares outstanding for WKC has been reduced compared to 1 year ago.
- WKC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for WKC is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.01 indicates that WKC is not in any danger for bankruptcy at the moment.
- WKC has a better Altman-Z score (7.01) than 91.30% of its industry peers.
- WKC has a debt to FCF ratio of 2.51. This is a good value and a sign of high solvency as WKC would need 2.51 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.51, WKC is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
- A Debt/Equity ratio of 0.47 indicates that WKC is not too dependend on debt financing.
- WKC has a Debt to Equity ratio (0.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 7.01 |
ROIC/WACC0.6
WACC10.26%
2.3 Liquidity
- WKC has a Current Ratio of 1.15. This is a normal value and indicates that WKC is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.15, WKC is in line with its industry, outperforming 50.72% of the companies in the same industry.
- WKC has a Quick Ratio of 1.15. This is a bad value and indicates that WKC is not financially healthy enough and could expect problems in meeting its short term obligations.
- WKC has a Quick ratio (0.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- WKC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.69%.
- Measured over the past years, WKC shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.33% on average per year.
- The Revenue for WKC has decreased by -15.23% in the past year. This is quite bad
- The Revenue has been growing slightly by 2.75% on average over the past years.
EPS 1Y (TTM)5.69%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%-12.9%
Revenue 1Y (TTM)-15.23%
Revenue growth 3Y10.4%
Revenue growth 5Y2.75%
Sales Q2Q%-10.48%
3.2 Future
- WKC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.90% yearly.
- Based on estimates for the next years, WKC will show a decrease in Revenue. The Revenue will decrease by -6.18% on average per year.
EPS Next Y-4.07%
EPS Next 2Y5.35%
EPS Next 3Y-0.9%
EPS Next 5YN/A
Revenue Next Year-13.22%
Revenue Next 2Y-6.32%
Revenue Next 3Y-6.18%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.54 indicates a reasonable valuation of WKC.
- Based on the Price/Earnings ratio, WKC is valued a bit cheaper than 77.29% of the companies in the same industry.
- WKC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 10.59 indicates a reasonable valuation of WKC.
- 78.26% of the companies in the same industry are more expensive than WKC, based on the Price/Forward Earnings ratio.
- WKC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WKC is valued a bit cheaper than the industry average as 77.29% of the companies are valued more expensively.
- 94.69% of the companies in the same industry are more expensive than WKC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.52 | ||
| EV/EBITDA | 5.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.35%
EPS Next 3Y-0.9%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.01%, WKC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.73, WKC has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, WKC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
- On average, the dividend of WKC grows each year by 15.67%, which is quite nice.
- WKC has paid a dividend for at least 10 years, which is a reliable track record.
- WKC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.67%
Div Incr Years6
Div Non Decr Years23
5.3 Sustainability
- The earnings of WKC are negative and hence is the payout ratio. WKC will probably not be able to sustain this dividend level.
DP-9.23%
EPS Next 2Y5.35%
EPS Next 3Y-0.9%
WORLD KINECT CORP / WKC FAQ
Can you provide the ChartMill fundamental rating for WORLD KINECT CORP?
ChartMill assigns a fundamental rating of 4 / 10 to WKC.
What is the valuation status for WKC stock?
ChartMill assigns a valuation rating of 6 / 10 to WORLD KINECT CORP (WKC). This can be considered as Fairly Valued.
What is the profitability of WKC stock?
WORLD KINECT CORP (WKC) has a profitability rating of 3 / 10.
What is the valuation of WORLD KINECT CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WORLD KINECT CORP (WKC) is 11.54 and the Price/Book (PB) ratio is 0.88.
How financially healthy is WORLD KINECT CORP?
The financial health rating of WORLD KINECT CORP (WKC) is 5 / 10.