WORLD KINECT CORP (WKC) Stock Fundamental Analysis
NYSE:WKC - New York Stock Exchange, Inc. - US9814751064 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to WKC. WKC was compared to 211 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 decent growth rate and is not valued too expensively.
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.
WKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WKC (0.29%) is worse than 67.30% of its industry peers.
WKC's Return On Equity of 0.98% is on the low side compared to the rest of the industry. WKC is outperformed by 63.51% of its industry peers.
WKC's Return On Invested Capital of 5.52% is in line compared to the rest of the industry. WKC outperforms 46.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WKC is significantly below the industry average of 23.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 0.98% | ||
| ROIC | 5.52% |
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 has a worse Profit Margin (0.05%) than 68.25% of its industry peers.
In the last couple of years the Profit Margin of WKC has declined.
With a Operating Margin value of 0.58%, WKC is not doing good in the industry: 74.88% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of WKC has declined.
WKC's Gross Margin of 2.47% is on the low side compared to the rest of the industry. WKC is outperformed by 77.25% of its industry peers.
In the last couple of years the Gross Margin of WKC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.58% | ||
| PM (TTM) | 0.05% | ||
| GM | 2.47% |
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.
WKC has less shares outstanding than it did 1 year ago.
WKC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WKC is higher compared to a year ago.
2.2 Solvency
WKC has an Altman-Z score of 7.02. This indicates that WKC is financially healthy and has little risk of bankruptcy at the moment.
WKC has a Altman-Z score of 7.02. This is amongst the best in the industry. WKC outperforms 92.89% of its industry peers.
The Debt to FCF ratio of WKC is 4.30, which is a neutral value as it means it would take WKC, 4.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WKC (4.30) is better than 67.77% of its industry peers.
WKC has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WKC (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 7.02 |
ROIC/WACC0.52
WACC10.66%
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.
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.
The Quick ratio of WKC (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
WKC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.28%.
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 -11.93% in the last year.
WKC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.75% yearly.
EPS 1Y (TTM)6.28%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%2.13%
Revenue 1Y (TTM)-11.93%
Revenue growth 3Y10.4%
Revenue growth 5Y2.75%
Sales Q2Q%-13.69%
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 12.29% on average per year.
WKC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
EPS Next Y5.15%
EPS Next 2Y14.75%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue Next Year-11.3%
Revenue Next 2Y-4.01%
Revenue Next 3Y2.3%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.47, 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.
When comparing the Price/Earnings ratio of WKC to the average of the S&P500 Index (27.45), we can say WKC is valued rather cheaply.
A Price/Forward Earnings ratio of 10.28 indicates a reasonable valuation of WKC.
Based on the Price/Forward Earnings ratio, WKC is valued a bit cheaper than the industry average as 65.88% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. WKC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
WKC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WKC is cheaper than 64.93% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WKC is valued cheaper than 80.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WKC does not grow enough to justify the current Price/Earnings ratio.
WKC's earnings are expected to grow with 12.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y14.75%
EPS Next 3Y12.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.70%, WKC has a reasonable but not impressive dividend return.
WKC's Dividend Yield is comparable with the industry average which is at 6.51.
WKC's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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
WKC pays out 210.58% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WKC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP210.58%
EPS Next 2Y14.75%
EPS Next 3Y12.29%
29.63
+0.07 (+0.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners112.5%
Inst Owner ChangeN/A
Ins Owners3.64%
Ins Owner Change11.25%
Market Cap1.68B
Analysts47.27
Price Target31.62 (6.72%)
Short Float %8.81%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend0.66
Dividend Growth(5Y)15.67%
DP210.58%
Div Incr Years6
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.43%
Min EPS beat(2)6.08%
Max EPS beat(2)22.77%
EPS beat(4)2
Avg EPS beat(4)3.34%
Min EPS beat(4)-14.52%
Max EPS beat(4)22.77%
EPS beat(8)4
Avg EPS beat(8)3.71%
EPS beat(12)8
Avg EPS beat(12)7.21%
EPS beat(16)12
Avg EPS beat(16)10.62%
Revenue beat(2)0
Avg Revenue beat(2)-8.53%
Min Revenue beat(2)-10.63%
Max Revenue beat(2)-6.42%
Revenue beat(4)0
Avg Revenue beat(4)-9.53%
Min Revenue beat(4)-11.74%
Max Revenue beat(4)-6.42%
Revenue beat(8)1
Avg Revenue beat(8)-8.1%
Revenue beat(12)2
Avg Revenue beat(12)-2.84%
Revenue beat(16)6
Avg Revenue beat(16)1.12%
PT rev (1m)2.48%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.12%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-11.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.62%
Revenue NY rev (1m)-3.5%
Revenue NY rev (3m)-8.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.04 | ||
| P/FCF | 8.21 | ||
| P/OCF | 6.21 | ||
| P/B | 0.87 | ||
| P/tB | 3.45 | ||
| EV/EBITDA | 6.12 |
EPS(TTM)2.2
EY7.42%
EPS(NY)2.88
Fwd EY9.73%
FCF(TTM)3.61
FCFY12.18%
OCF(TTM)4.77
OCFY16.11%
SpS718.15
BVpS33.93
TBVpS8.59
PEG (NY)2.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 0.98% | ||
| ROCE | 7.28% | ||
| ROIC | 5.52% | ||
| ROICexc | 6.42% | ||
| ROICexgc | 13.21% | ||
| OM | 0.58% | ||
| PM (TTM) | 0.05% | ||
| GM | 2.47% | ||
| FCFM | 0.5% |
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-Score5
Asset Turnover6.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 61.76% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.8% | ||
| Profit Quality | 1081.48% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 7.02 |
F-Score5
WACC10.66%
ROIC/WACC0.52
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)6.28%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%2.13%
EPS Next Y5.15%
EPS Next 2Y14.75%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.93%
Revenue growth 3Y10.4%
Revenue growth 5Y2.75%
Sales Q2Q%-13.69%
Revenue Next Year-11.3%
Revenue Next 2Y-4.01%
Revenue Next 3Y2.3%
Revenue Next 5YN/A
EBIT growth 1Y-0.25%
EBIT growth 3Y17.01%
EBIT growth 5Y-5.07%
EBIT Next Year43.67%
EBIT Next 3Y22.23%
EBIT Next 5YN/A
FCF growth 1Y-25.07%
FCF growth 3Y12.73%
FCF growth 5Y5.34%
OCF growth 1Y-23.54%
OCF growth 3Y14.52%
OCF growth 5Y2.59%