WORLD KINECT CORP (WKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WKC - US9814751064 - Common Stock
26.04 USD
-0.38 (-1.44%)
26.04 USD
0 (0%)
WKC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 207 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year WKC was profitable.
- WKC had a positive operating cash flow in the past year.
- WKC had positive earnings in each of the past 5 years.
- 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 Return On Equity of -27.00%. This is amonst the worse of the industry: WKC underperforms 80.19% of its industry peers.
- WKC has a Return On Invested Capital (6.19%) which is in line with 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 21.94%.
- The last Return On Invested Capital (6.19%) for WKC is above the 3 year average (5.64%), which is a sign of increasing profitability.
| 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
- In the last couple of years the Profit Margin of WKC has declined.
- WKC's Operating Margin of 0.63% is on the low side compared to the rest of the industry. WKC is outperformed by 72.46% of its industry peers.
- In the last couple of years the Operating Margin of WKC has declined.
- WKC has a Gross Margin of 2.58%. This is in the lower half of the industry: WKC underperforms 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
- WKC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, WKC has less shares outstanding
- Compared to 5 years ago, WKC has less shares outstanding
- WKC has a worse debt/assets ratio than last year.
2.2 Solvency
- WKC has an Altman-Z score of 7.01. This indicates that WKC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of WKC (7.01) is better 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.
- With a decent Debt to FCF ratio value of 2.51, WKC is doing good in the industry, outperforming 79.23% of the companies in the same industry.
- WKC has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 7.01 |
ROIC/WACC0.6
WACC10.25%
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.
- WKC has a Current ratio (1.15) which is comparable to the rest of the industry.
- A Quick Ratio of 0.99 indicates that WKC may have some problems paying its short term obligations.
- WKC has a Quick ratio of 0.99. This is comparable to the rest of the industry: WKC outperforms 51.21% of 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.
- Looking at the last year, WKC shows a very negative growth in Revenue. The Revenue has decreased by -15.23% in the last year.
- Measured over the past years, WKC shows a small growth in Revenue. The Revenue has been growing by 2.75% on average per year.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.68, 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 73.91% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. WKC is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 10.71 indicates a reasonable valuation of WKC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WKC indicates a somewhat cheap valuation: WKC is cheaper than 76.81% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, WKC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WKC is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, WKC is valued cheaper than 93.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.57 | ||
| EV/EBITDA | 5.25 |
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.
- WKC's Dividend Yield is comparable with the industry average which is at 3.73.
- WKC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 11.68 and the Price/Book (PB) ratio is 0.89.
How financially healthy is WORLD KINECT CORP?
The financial health rating of WORLD KINECT CORP (WKC) is 5 / 10.