WORLD KINECT CORP (WKC) Stock Fundamental Analysis
NYSE:WKC - New York Stock Exchange, Inc. - US9814751064 - Common Stock - Currency: USD
Overall WKC gets a fundamental rating of 4 out of 10. We evaluated WKC against 211 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 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.
In the past year WKC had a positive cash flow from operations.
WKC had positive earnings in 4 of the past 5 years.
Of the past 5 years WKC 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WKC (1.92%) is worse than 67.65% of its industry peers.
WKC has a worse Return On Equity (6.57%) than 63.24% of its industry peers.
The Return On Invested Capital of WKC (5.06%) is worse than 63.24% of its industry peers.
WKC had an Average Return On Invested Capital over the past 3 years of 5.42%. This is significantly below the industry average of 28.75%.
| 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: 74.51% of the companies in the same industry are doing better.
WKC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 0.48%, WKC is doing worse than 81.86% of the companies in the same industry.
In the last couple of years the Operating Margin of WKC has declined.
WKC has a worse Gross Margin (2.25%) than 81.37% of its industry peers.
In the last couple of years the Gross Margin of WKC has declined.
| 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
WKC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for WKC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 7.18 indicates that WKC is not in any danger for bankruptcy at the moment.
WKC's Altman-Z score of 7.18 is amongst the best of the industry. WKC outperforms 93.63% of its industry peers.
WKC has a debt to FCF ratio of 11.90. This is a negative value and a sign of low solvency as WKC would need 11.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.90, WKC is in line with its industry, outperforming 41.67% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that WKC is not too dependend on debt financing.
WKC's Debt to Equity ratio of 0.39 is in line compared to the rest of the industry. WKC outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 11.9 | ||
| Altman-Z | 7.18 |
ROIC/WACC0.47
WACC10.82%
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 45.59% of the companies in the same industry.
WKC has a Quick Ratio of 1.16. 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 | 1.16 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.73% over the past year.
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.
EPS 1Y (TTM)11.73%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%14.81%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-18.68%
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 18.15% yearly.
Based on estimates for the next years, WKC will show a small growth in Revenue. The Revenue will grow by 4.16% on average per year.
EPS Next Y17.42%
EPS Next 2Y18.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.7%
Revenue Next 2Y4.16%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.03, the valuation of WKC can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of WKC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of WKC to the average of the S&P500 Index (29.63), we can say WKC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.95, the valuation of WKC can be described as reasonable.
WKC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WKC is cheaper than 66.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WKC to the average of the S&P500 Index (22.68), we can say WKC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 11.95 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WKC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.05 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
WKC's 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 18.15% in the coming years.
PEG (NY)0.81
PEG (5Y)N/A
EPS Next 2Y18.15%
EPS Next 3YN/A
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 6.75, WKC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, 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 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)18.35%
Div Incr Years5
Div Non Decr Years22
5.3 Sustainability
WKC pays out 27.46% of its income as dividend. This is a sustainable payout ratio.
WKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.46%
EPS Next 2Y18.15%
EPS Next 3YN/A
30.73
+3.13 (+11.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners109.9%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner Change-4.49%
Market Cap1.78B
Analysts48.33
Price Target31.62 (2.9%)
Short Float %9.54%
Short Ratio7.5
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)1.64%
PT rev (3m)0.81%
EPS NQ rev (1m)-7.18%
EPS NQ rev (3m)-7.18%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)-1.07%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 11.95 | ||
| P/S | 0.04 | ||
| P/FCF | 24.05 | ||
| P/OCF | 12.38 | ||
| P/B | 0.87 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)2.19
EY7.13%
EPS(NY)2.57
Fwd EY8.37%
FCF(TTM)1.28
FCFY4.16%
OCF(TTM)2.48
OCFY8.08%
SpS764.64
BVpS35.2
TBVpS10.27
PEG (NY)0.81
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
WACC10.82%
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)11.73%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%14.81%
EPS Next Y17.42%
EPS Next 2Y18.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-18.68%
Revenue Next Year5.7%
Revenue Next 2Y4.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-27.01%
EBIT growth 3Y11.01%
EBIT growth 5Y-2.99%
EBIT Next Year28.36%
EBIT Next 3Y14.88%
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