WORLD KINECT CORP (WKC)
US9814751064 - Common Stock
We assign a fundamental rating of 4 out of 10 to WKC. WKC was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of WKC is average, but there are quite some concerns on its profitability. WKC has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years WKC has been profitable.
In the past 5 years WKC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.80%, WKC is not doing good in the industry: 75.59% of the companies in the same industry are doing better.
WKC's Return On Equity of 2.95% is on the low side compared to the rest of the industry. WKC is outperformed by 73.24% of its industry peers.
WKC has a Return On Invested Capital of 5.74%. This is in the lower half of the industry: WKC underperforms 62.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WKC is significantly below the industry average of 43.36%.
The 3 year average ROIC (5.42%) for WKC is below the current ROIC(5.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.95% | ||
| ROIC | 5.74% |
ROA(3y)1.12%
ROA(5y)1.76%
ROE(3y)4.11%
ROE(5y)5.51%
ROIC(3y)5.42%
ROIC(5y)6.06%
1.3 Margins
WKC has a Profit Margin of 0.12%. This is in the lower half of the industry: WKC underperforms 78.87% of its industry peers.
In the last couple of years the Profit Margin of WKC has declined.
WKC has a Operating Margin of 0.51%. This is amonst the worse of the industry: WKC underperforms 84.04% of its industry peers.
WKC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 2.27%, WKC is doing worse than 83.57% of the companies in the same industry.
In the last couple of years the Gross Margin of WKC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.51% | ||
| PM (TTM) | 0.12% | ||
| GM | 2.27% |
OM growth 3Y-16.43%
OM growth 5Y-6.47%
PM growth 3Y-41.02%
PM growth 5Y-19.2%
GM growth 3Y-19.07%
GM growth 5Y-2.85%
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.
Compared to 5 years ago, WKC has less shares outstanding
The debt/assets ratio for WKC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.20 indicates that WKC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.20, WKC belongs to the top of the industry, outperforming 92.02% of the companies in the same industry.
The Debt to FCF ratio of WKC is 6.04, which is on the high side as it means it would take WKC, 6.04 years of fcf income to pay off all of its debts.
WKC's Debt to FCF ratio of 6.04 is in line compared to the rest of the industry. WKC outperforms 54.46% of its industry peers.
WKC has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
WKC has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: WKC outperforms 53.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 7.2 |
ROIC/WACC0.57
WACC10.12%
2.3 Liquidity
WKC has a Current Ratio of 1.14. This is a normal value and indicates that WKC is financially healthy and should not expect problems in meeting its short term obligations.
WKC has a Current ratio of 1.14. This is comparable to the rest of the industry: WKC outperforms 43.66% of its industry peers.
WKC has a Quick Ratio of 1.14. 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's Quick ratio of 0.97 is in line compared to the rest of the industry. WKC outperforms 46.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.55% over the past year.
Measured over the past years, WKC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.56% on average per year.
The Revenue for WKC has decreased by -21.92% in the past year. This is quite bad
WKC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.72% yearly.
EPS 1Y (TTM)4.55%
EPS 3Y19.45%
EPS 5Y-1.56%
EPS growth Q2Q30.56%
Revenue 1Y (TTM)-21.92%
Revenue growth 3Y32.83%
Revenue growth 5Y3.72%
Revenue growth Q2Q-12.26%
3.2 Future
The Earnings Per Share is expected to grow by 22.76% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.40% on average over the next years.
EPS Next Y23.5%
EPS Next 2Y22.03%
EPS Next 3Y22.76%
EPS Next 5YN/A
Revenue Next Year1.89%
Revenue Next 2Y1.77%
Revenue Next 3Y1.4%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 12.32, which indicates a correct valuation of WKC.
Compared to the rest of the industry, the Price/Earnings ratio of WKC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.60, WKC is valued rather cheaply.
The Price/Forward Earnings ratio is 8.74, which indicates a very decent valuation of WKC.
68.54% 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 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WKC is on the same level as its industry peers.
WKC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WKC is cheaper than 62.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.45 | ||
| EV/EBITDA | 6.13 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as WKC's earnings are expected to grow with 22.76% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y22.03%
EPS Next 3Y22.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, WKC has a reasonable but not impressive dividend return.
WKC's Dividend Yield is comparable with the industry average which is at 5.80.
Compared to an average S&P500 Dividend Yield of 2.32, WKC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of WKC is nicely growing with an annual growth rate of 18.35%!
WKC has paid a dividend for at least 10 years, which is a reliable track record.
As WKC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)18.35%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
WKC pays out 58.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
WKC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.68%
EPS Next 2Y22.03%
EPS Next 3Y22.76%
WORLD KINECT CORP
NYSE:WKC (5/17/2024, 7:04:00 PM)
After market: 25.5 0 (0%)25.5
+0.37 (+1.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 8.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.51% | ||
| PM (TTM) | 0.12% | ||
| GM | 2.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover6.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.55%
EPS 3Y19.45%
EPS 5Y
EPS growth Q2Q
EPS Next Y23.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.92%
Revenue growth 3Y32.83%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y