WORLD KINECT CORP (WKC) Stock Fundamental Analysis
USA - NYSE:WKC - US9814751064 - Common Stock
26.92 USD
+0.73 (+2.79%)
26.92 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WKC. WKC was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. WKC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. WKC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WKC was profitable.
WKC had a positive operating cash flow in the past year.
Each year in the past 5 years WKC has been profitable.
WKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WKC has a worse Return On Assets (-7.08%) than 79.05% of its industry peers.
WKC has a Return On Equity of -26.82%. This is amonst the worse of the industry: WKC underperforms 81.90% of its industry peers.
WKC's Return On Invested Capital of 6.33% is in line compared to the rest of the industry. WKC outperforms 56.19% 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 21.66%.
The 3 year average ROIC (5.64%) for WKC is below the current ROIC(6.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.08% | ||
| ROE | -26.82% | ||
| ROIC | 6.33% |
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 has a Operating Margin of 0.63%. This is in the lower half of the industry: WKC underperforms 75.24% of its industry peers.
WKC's Operating Margin has declined in the last couple of years.
WKC has a worse Gross Margin (2.55%) than 76.19% 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 | 2.55% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WKC is destroying value.
The number of shares outstanding for WKC has been reduced compared to 1 year ago.
The number of shares outstanding for WKC has been reduced compared to 5 years ago.
WKC has a worse debt/assets ratio than last year.
2.2 Solvency
WKC has an Altman-Z score of 7.19. This indicates that WKC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.19, WKC belongs to the top of the industry, outperforming 91.90% of the companies in the same industry.
WKC has a debt to FCF ratio of 5.17. This is a neutral value as WKC would need 5.17 years to pay back of all of its debts.
WKC's Debt to FCF ratio of 5.17 is fine compared to the rest of the industry. WKC outperforms 63.33% of its industry peers.
WKC has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WKC (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 7.19 |
ROIC/WACC0.62
WACC10.16%
2.3 Liquidity
A Current Ratio of 1.13 indicates that WKC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, WKC is in line with its industry, outperforming 50.00% of the companies in the same industry.
WKC has a Quick Ratio of 1.13. This is a bad value and indicates that WKC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.98, WKC is in line with its industry, outperforming 53.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
WKC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.59%, which is quite good.
The Earnings Per Share has been decreasing by -5.33% on average over the past years.
Looking at the last year, WKC shows a very negative growth in Revenue. The Revenue has decreased by -16.07% 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)11.59%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%22.92%
Revenue 1Y (TTM)-16.07%
Revenue growth 3Y10.4%
Revenue growth 5Y2.75%
Sales Q2Q%-17.53%
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.
The Revenue is expected to decrease by -4.85% on average over the next years.
EPS Next Y3.77%
EPS Next 2Y12.69%
EPS Next 3Y13.61%
EPS Next 5YN/A
Revenue Next Year-12.79%
Revenue Next 2Y-5.61%
Revenue Next 3Y-4.85%
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
Based on the Price/Earnings ratio of 11.65, the valuation of WKC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of WKC indicates a somewhat cheap valuation: WKC is cheaper than 72.86% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. WKC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.68 indicates a reasonable valuation of WKC.
WKC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WKC is cheaper than 75.24% of the companies in the same industry.
WKC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WKC is valued a bit cheaper than 74.76% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WKC indicates a somewhat cheap valuation: WKC is cheaper than 79.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.45 | ||
| EV/EBITDA | 5.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WKC's earnings are expected to grow with 13.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.09
PEG (5Y)N/A
EPS Next 2Y12.69%
EPS Next 3Y13.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.99%, WKC has a reasonable but not impressive dividend return.
WKC's Dividend Yield is comparable with the industry average which is at 6.17.
Compared to an average S&P500 Dividend Yield of 2.38, WKC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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
WKC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of WKC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-9.14%
EPS Next 2Y12.69%
EPS Next 3Y13.61%
26.92
+0.73 (+2.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners113.3%
Inst Owner ChangeN/A
Ins Owners3.74%
Ins Owner Change11.22%
Market Cap1.50B
Analysts46
Price Target28.9 (7.36%)
Short Float %10.37%
Short Ratio8.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend0.66
Dividend Growth(5Y)15.67%
DP-9.14%
Div Incr Years6
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.47%
Min EPS beat(2)6.08%
Max EPS beat(2)20.86%
EPS beat(4)3
Avg EPS beat(4)12.18%
Min EPS beat(4)-0.99%
Max EPS beat(4)22.77%
EPS beat(8)4
Avg EPS beat(8)6.27%
EPS beat(12)8
Avg EPS beat(12)5.62%
EPS beat(16)12
Avg EPS beat(16)9.99%
Revenue beat(2)0
Avg Revenue beat(2)-7.31%
Min Revenue beat(2)-10.63%
Max Revenue beat(2)-3.98%
Revenue beat(4)0
Avg Revenue beat(4)-8.19%
Min Revenue beat(4)-11.74%
Max Revenue beat(4)-3.98%
Revenue beat(8)1
Avg Revenue beat(8)-6.39%
Revenue beat(12)1
Avg Revenue beat(12)-6.53%
Revenue beat(16)5
Avg Revenue beat(16)0.16%
PT rev (1m)-6.59%
PT rev (3m)-8.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.78%
EPS NY rev (1m)3.85%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-1.97%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 9.68 | ||
| P/S | 0.04 | ||
| P/FCF | 9.45 | ||
| P/OCF | 6.66 | ||
| P/B | 0.94 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)2.31
EY8.58%
EPS(NY)2.78
Fwd EY10.33%
FCF(TTM)2.85
FCFY10.58%
OCF(TTM)4.04
OCFY15.01%
SpS697.64
BVpS28.78
TBVpS9.45
PEG (NY)3.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.08% | ||
| ROE | -26.82% | ||
| ROCE | 8.35% | ||
| ROIC | 6.33% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 12.88% | ||
| OM | 0.63% | ||
| PM (TTM) | N/A | ||
| GM | 2.55% | ||
| FCFM | 0.41% |
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%
ROICexcg growth 3Y-12.23%
ROICexcg 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 Turnover6.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 62.39% | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 7.19 |
F-Score4
WACC10.16%
ROIC/WACC0.62
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)11.59%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%22.92%
EPS Next Y3.77%
EPS Next 2Y12.69%
EPS Next 3Y13.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.07%
Revenue growth 3Y10.4%
Revenue growth 5Y2.75%
Sales Q2Q%-17.53%
Revenue Next Year-12.79%
Revenue Next 2Y-5.61%
Revenue Next 3Y-4.85%
Revenue Next 5YN/A
EBIT growth 1Y13.31%
EBIT growth 3Y17.01%
EBIT growth 5Y-5.07%
EBIT Next Year41.85%
EBIT Next 3Y18.2%
EBIT Next 5YN/A
FCF growth 1Y-40.7%
FCF growth 3Y12.73%
FCF growth 5Y5.34%
OCF growth 1Y-36.65%
OCF growth 3Y14.52%
OCF growth 5Y2.59%