WORLD KINECT CORP (WKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WKC - US9814751064 - Common Stock
23.18 USD
-0.51 (-2.15%)
23.18 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WKC. WKC was compared to 209 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WKC had positive earnings in the past year.
WKC had a positive operating cash flow in the past year.
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
WKC has a Return On Assets of -7.21%. This is in the lower half of the industry: WKC underperforms 78.95% of its industry peers.
Looking at the Return On Equity, with a value of -27.00%, WKC is doing worse than 80.38% of the companies in the same industry.
WKC has a Return On Invested Capital of 6.19%. This is comparable to the rest of the industry: WKC outperforms 55.02% of its industry peers.
WKC had an Average Return On Invested Capital over the past 3 years of 5.64%. This is significantly below the industry average of 21.49%.
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 worse Operating Margin (0.63%) than 74.16% 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 77.03% 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.
WKC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WKC has less shares outstanding
Compared to 1 year ago, WKC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.99 indicates that WKC is not in any danger for bankruptcy at the moment.
WKC has a better Altman-Z score (6.99) than 92.82% 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.
WKC has a Debt to FCF ratio of 2.51. This is in the better half of the industry: WKC outperforms 79.90% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that WKC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, WKC is in line with its industry, outperforming 50.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 6.99 |
ROIC/WACC0.6
WACC10.27%
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.
The Current ratio of WKC (1.15) is comparable to the rest of the 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.69% over the past year.
WKC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.33% yearly.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.61% yearly.
WKC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.85% yearly.
EPS Next Y-4.3%
EPS Next 2Y10.24%
EPS Next 3Y13.61%
EPS Next 5YN/A
Revenue Next Year-12.83%
Revenue Next 2Y-4.99%
Revenue Next 3Y-4.85%
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
The Price/Earnings ratio is 10.39, which indicates a very decent valuation of WKC.
Compared to the rest of the industry, the Price/Earnings ratio of WKC indicates a somewhat cheap valuation: WKC is cheaper than 77.51% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WKC to the average of the S&P500 Index (26.31), we can say WKC is valued rather cheaply.
WKC is valuated reasonably with a Price/Forward Earnings ratio of 8.71.
80.86% of the companies in the same industry are more expensive than WKC, based on the Price/Forward Earnings ratio.
WKC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WKC indicates a somewhat cheap valuation: WKC is cheaper than 77.51% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WKC is valued cheaply inside the industry as 94.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.07 | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
WKC's earnings are expected to grow with 13.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.24%
EPS Next 3Y13.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, WKC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.93, WKC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, WKC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of WKC is nicely growing with an annual growth rate of 15.67%!
WKC has been paying a dividend for at least 10 years, so it has 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.
WKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-9.23%
EPS Next 2Y10.24%
EPS Next 3Y13.61%
23.18
-0.51 (-2.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners113.66%
Inst Owner ChangeN/A
Ins Owners3.82%
Ins Owner Change2.83%
Market Cap1.29B
Revenue(TTM)37.65B
Net Income(TTM)-436.80M
Analysts46
Price Target29.24 (26.14%)
Short Float %7.72%
Short Ratio5.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend0.66
Dividend Growth(5Y)15.67%
DP-9.23%
Div Incr Years6
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.5%
Min EPS beat(2)-11.87%
Max EPS beat(2)20.86%
EPS beat(4)3
Avg EPS beat(4)9.46%
Min EPS beat(4)-11.87%
Max EPS beat(4)22.77%
EPS beat(8)4
Avg EPS beat(8)4.98%
EPS beat(12)7
Avg EPS beat(12)4.33%
EPS beat(16)11
Avg EPS beat(16)8.95%
Revenue beat(2)0
Avg Revenue beat(2)-2.42%
Min Revenue beat(2)-3.98%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-5.47%
Min Revenue beat(4)-10.63%
Max Revenue beat(4)-0.86%
Revenue beat(8)0
Avg Revenue beat(8)-6.6%
Revenue beat(12)1
Avg Revenue beat(12)-6.42%
Revenue beat(16)4
Avg Revenue beat(16)-0.34%
PT rev (1m)0%
PT rev (3m)1.18%
EPS NQ rev (1m)-7.62%
EPS NQ rev (3m)-18.42%
EPS NY rev (1m)-7.78%
EPS NY rev (3m)-7.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 8.71 | ||
| P/S | 0.03 | ||
| P/FCF | 4.07 | ||
| P/OCF | 3.4 | ||
| P/B | 0.8 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)2.23
EY9.62%
EPS(NY)2.66
Fwd EY11.48%
FCF(TTM)5.7
FCFY24.58%
OCF(TTM)6.82
OCFY29.4%
SpS677.61
BVpS29.12
TBVpS9.96
PEG (NY)N/A
PEG (5Y)N/A
Graham Number38.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.21% | ||
| ROE | -27% | ||
| ROCE | 8.16% | ||
| ROIC | 6.19% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 13.13% | ||
| OM | 0.63% | ||
| PM (TTM) | N/A | ||
| GM | 2.58% | ||
| FCFM | 0.84% |
ROA(3y)1.04%
ROA(5y)1.36%
ROE(3y)3.98%
ROE(5y)4.31%
ROIC(3y)5.64%
ROIC(5y)5.14%
ROICexc(3y)6.25%
ROICexc(5y)6.04%
ROICexgc(3y)12.39%
ROICexgc(5y)15.33%
ROCE(3y)7.44%
ROCE(5y)6.78%
ROICexgc growth 3Y-12.23%
ROICexgc growth 5Y-9.09%
ROICexc growth 3Y6.47%
ROICexc growth 5Y-6.88%
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%
F-Score4
Asset Turnover6.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.51 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 59.81% | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 6.99 |
F-Score4
WACC10.27%
ROIC/WACC0.6
Cap/Depr(3y)73.61%
Cap/Depr(5y)65.8%
Cap/Sales(3y)0.16%
Cap/Sales(5y)0.17%
Profit Quality(3y)228.19%
Profit Quality(5y)273.61%
High Growth Momentum
Growth
EPS 1Y (TTM)5.69%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%-12.9%
EPS Next Y-4.3%
EPS Next 2Y10.24%
EPS Next 3Y13.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.23%
Revenue growth 3Y10.4%
Revenue growth 5Y2.75%
Sales Q2Q%-10.48%
Revenue Next Year-12.83%
Revenue Next 2Y-4.99%
Revenue Next 3Y-4.85%
Revenue Next 5YN/A
EBIT growth 1Y10.69%
EBIT growth 3Y17.01%
EBIT growth 5Y-5.07%
EBIT Next Year40.39%
EBIT Next 3Y16.41%
EBIT Next 5YN/A
FCF growth 1Y269.31%
FCF growth 3Y12.73%
FCF growth 5Y5.34%
OCF growth 1Y115.17%
OCF growth 3Y14.52%
OCF growth 5Y2.59%
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 of WORLD KINECT CORP (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 financial health of WORLD KINECT CORP (WKC) stock?
The financial health rating of WORLD KINECT CORP (WKC) is 5 / 10.
How sustainable is the dividend of WORLD KINECT CORP (WKC) stock?
The dividend rating of WORLD KINECT CORP (WKC) is 5 / 10 and the dividend payout ratio is -9.23%.