WORLD KINECT CORP (WKC) Stock Fundamental Analysis
NYSE:WKC - New York Stock Exchange, Inc. - US9814751064 - Common Stock
WKC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 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
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.
Each year in the past 5 years WKC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.92%, WKC is not doing good in the industry: 67.96% of the companies in the same industry are doing better.
WKC's Return On Equity of 6.57% is on the low side compared to the rest of the industry. WKC is outperformed by 64.56% of its industry peers.
WKC has a Return On Invested Capital of 5.06%. This is in the lower half of the industry: WKC underperforms 63.11% 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 28.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 6.57% | ||
| ROIC | 5.06% |
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
With a Profit Margin value of 0.30%, WKC is not doing good in the industry: 75.73% of the companies in the same industry are doing better.
WKC's Profit Margin has declined in the last couple of years.
WKC has a worse Operating Margin (0.48%) than 81.55% of its industry peers.
In the last couple of years the Operating Margin of WKC has declined.
WKC has a worse Gross Margin (2.25%) than 81.07% of its industry peers.
WKC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.48% | ||
| PM (TTM) | 0.3% | ||
| GM | 2.25% |
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.
WKC has less shares outstanding than it did 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 7.18. This indicates that WKC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.18, WKC belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
The Debt to FCF ratio of WKC is 11.90, which is on the high side as it means it would take WKC, 11.90 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.90, WKC perfoms like the industry average, outperforming 42.72% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that WKC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.39, WKC perfoms like the industry average, outperforming 50.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 11.9 | ||
| Altman-Z | 7.18 |
ROIC/WACC0.47
WACC10.87%
2.3 Liquidity
A Current Ratio of 1.16 indicates that WKC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.16, WKC perfoms like the industry average, outperforming 45.63% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that WKC may have some problems paying its short term obligations.
The Quick ratio of WKC (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| 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 7.65%.
WKC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.56% yearly.
Looking at the last year, WKC shows a very negative growth in Revenue. The Revenue has decreased by -10.44% in the last year.
Measured over the past years, WKC shows a small growth in Revenue. The Revenue has been growing by 3.72% on average per year.
EPS 1Y (TTM)7.65%
EPS 3Y19.45%
EPS 5Y-1.56%
EPS Q2Q%6.9%
Revenue 1Y (TTM)-10.44%
Revenue growth 3Y32.83%
Revenue growth 5Y3.72%
Sales Q2Q%-14.33%
3.2 Future
Based on estimates for the next years, WKC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.90% on average per year.
WKC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.22% yearly.
EPS Next Y9.59%
EPS Next 2Y14.86%
EPS Next 3Y16.9%
EPS Next 5YN/A
Revenue Next Year-8.02%
Revenue Next 2Y-1.92%
Revenue Next 3Y-0.22%
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
With a Price/Earnings ratio of 13.55, WKC is valued correctly.
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 28.29, WKC is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.05, the valuation of WKC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WKC is valued a bit cheaper than 66.02% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. WKC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 11.05 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.37 | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as WKC's earnings are expected to grow with 16.90% in the coming years.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y14.86%
EPS Next 3Y16.9%
5. Dividend
5.1 Amount
WKC has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.39, WKC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, WKC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
On average, the dividend of WKC grows each year by 18.35%, 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)18.35%
Div Incr Years5
Div Non Decr Years22
5.3 Sustainability
27.46% of the earnings are spent on dividend by WKC. This is a low number and sustainable payout ratio.
WKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.46%
EPS Next 2Y14.86%
EPS Next 3Y16.9%
WORLD KINECT CORP
NYSE:WKC (1/21/2025, 6:40:00 PM)
After market: 28.58 0 (0%)28.58
+0.51 (+1.82%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners107.94%
Inst Owner ChangeN/A
Ins Owners3.33%
Ins Owner Change-5.91%
Market Cap1.66B
Analysts48.33
Price Target31.11 (8.85%)
Short Float %9.17%
Short Ratio6.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend0.56
Dividend Growth(5Y)18.35%
DP27.46%
Div Incr Years5
Div Non Decr Years22
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.76%
Min EPS beat(2)-14.52%
Max EPS beat(2)-0.99%
EPS beat(4)1
Avg EPS beat(4)0.5%
Min EPS beat(4)-14.52%
Max EPS beat(4)22.07%
EPS beat(8)4
Avg EPS beat(8)1.76%
EPS beat(12)8
Avg EPS beat(12)8.78%
EPS beat(16)11
Avg EPS beat(16)4.28%
Revenue beat(2)0
Avg Revenue beat(2)-10.54%
Min Revenue beat(2)-11.74%
Max Revenue beat(2)-9.34%
Revenue beat(4)0
Avg Revenue beat(4)-7.73%
Min Revenue beat(4)-11.74%
Max Revenue beat(4)-2.08%
Revenue beat(8)1
Avg Revenue beat(8)-6.89%
Revenue beat(12)4
Avg Revenue beat(12)1.37%
Revenue beat(16)6
Avg Revenue beat(16)1.37%
PT rev (1m)0%
PT rev (3m)1.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.04 | ||
| P/FCF | 22.37 | ||
| P/OCF | 11.51 | ||
| P/B | 0.81 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 6.76 |
EPS(TTM)2.11
EY7.38%
EPS(NY)2.59
Fwd EY9.05%
FCF(TTM)1.28
FCFY4.47%
OCF(TTM)2.48
OCFY8.69%
SpS764.64
BVpS35.2
TBVpS10.27
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 6.57% | ||
| ROCE | 6.31% | ||
| ROIC | 5.06% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 10.9% | ||
| OM | 0.48% | ||
| PM (TTM) | 0.3% | ||
| GM | 2.25% | ||
| FCFM | 0.17% |
ROA(3y)1.12%
ROA(5y)1.76%
ROE(3y)4.11%
ROE(5y)5.51%
ROIC(3y)5.42%
ROIC(5y)6.06%
ROICexc(3y)6.23%
ROICexc(5y)6.97%
ROICexgc(3y)15.27%
ROICexgc(5y)17.87%
ROCE(3y)6.75%
ROCE(5y)7.55%
ROICexcg growth 3Y-16.16%
ROICexcg growth 5Y-7.37%
ROICexc growth 3Y-0.78%
ROICexc growth 5Y-6.38%
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%
F-Score7
Asset Turnover6.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 11.9 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 68.63% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.55% | ||
| Profit Quality | 55.21% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 7.18 |
F-Score7
WACC10.87%
ROIC/WACC0.47
Cap/Depr(3y)68.38%
Cap/Depr(5y)71.5%
Cap/Sales(3y)0.15%
Cap/Sales(5y)0.18%
Profit Quality(3y)193.65%
Profit Quality(5y)233.22%
High Growth Momentum
Growth
EPS 1Y (TTM)7.65%
EPS 3Y19.45%
EPS 5Y-1.56%
EPS Q2Q%6.9%
EPS Next Y9.59%
EPS Next 2Y14.86%
EPS Next 3Y16.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.44%
Revenue growth 3Y32.83%
Revenue growth 5Y3.72%
Sales Q2Q%-14.33%
Revenue Next Year-8.02%
Revenue Next 2Y-1.92%
Revenue Next 3Y-0.22%
Revenue Next 5YN/A
EBIT growth 1Y-27.01%
EBIT growth 3Y11.01%
EBIT growth 5Y-2.99%
EBIT Next Year29.13%
EBIT Next 3Y14.47%
EBIT Next 5YN/A
FCF growth 1Y-33.75%
FCF growth 3Y-30.72%
FCF growth 5YN/A
OCF growth 1Y-19.49%
OCF growth 3Y-23.41%
OCF growth 5YN/A