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 213 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WKC had positive earnings in the past year.
In the past year WKC had a positive cash flow from operations.
In the past 5 years WKC has always been profitable.
In the past 5 years WKC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.29%, WKC is doing worse than 67.61% of the companies in the same industry.
WKC's Return On Equity of 0.98% is on the low side compared to the rest of the industry. WKC is outperformed by 63.85% of its industry peers.
WKC has a Return On Invested Capital (5.52%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for WKC is significantly below the industry average of 23.60%.
| 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
Looking at the Profit Margin, with a value of 0.05%, WKC is doing worse than 68.54% of the companies in the same industry.
In the last couple of years the Profit Margin of WKC has declined.
WKC has a worse Operating Margin (0.58%) than 75.12% of its industry peers.
In the last couple of years the Operating Margin of WKC has declined.
WKC has a Gross Margin of 2.47%. This is in the lower half of the industry: WKC underperforms 77.46% of its industry peers.
WKC's Gross Margin has declined in the last couple of years.
| 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.
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 7.00. This indicates that WKC is financially healthy and has little risk of bankruptcy at the moment.
WKC has a Altman-Z score of 7.00. This is amongst the best in the industry. WKC outperforms 92.96% 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.
With a decent Debt to FCF ratio value of 4.30, WKC is doing good in the industry, outperforming 68.08% of the companies in the same industry.
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 |
ROIC/WACC0.52
WACC10.67%
2.3 Liquidity
A Current Ratio of 1.15 indicates that WKC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.15, WKC perfoms like the industry average, outperforming 49.30% of the companies in the same 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.
Looking at the Quick ratio, with a value of 1.00, WKC is in line with its industry, outperforming 52.11% of the companies in the same 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%.
WKC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.33% yearly.
WKC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.93%.
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)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 Y5.61%
EPS Next 2Y14.78%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue Next Year-8.09%
Revenue Next 2Y-1.67%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.50, which indicates a correct valuation of WKC.
WKC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.30. WKC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.53, which indicates a very decent valuation of WKC.
WKC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WKC is cheaper than 67.14% of the companies in the same industry.
WKC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 9.53 |
4.2 Price Multiples
WKC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WKC is cheaper than 66.20% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WKC is valued cheaper than 80.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| EV/EBITDA | 5.77 |
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.
A more expensive valuation may be justified as WKC's earnings are expected to grow with 12.29% in the coming years.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y14.78%
EPS Next 3Y12.29%
5. Dividend
5.1 Amount
WKC has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.81, WKC has a dividend in line with its industry peers.
WKC's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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
210.58% of the earnings are spent on dividend by WKC. This is not a sustainable payout ratio.
WKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP210.58%
EPS Next 2Y14.78%
EPS Next 3Y12.29%
27.51
+0.05 (+0.18%)
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 Change8.79%
Market Cap1.56B
Analysts48.33
Price Target30.86 (12.18%)
Short Float %9.38%
Short Ratio6.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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)-2.42%
PT rev (3m)-2.42%
EPS NQ rev (1m)-13.16%
EPS NQ rev (3m)-14.95%
EPS NY rev (1m)-11.45%
EPS NY rev (3m)-10.05%
Revenue NQ rev (1m)-8.19%
Revenue NQ rev (3m)-12.63%
Revenue NY rev (1m)-8.58%
Revenue NY rev (3m)-14.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 9.53 | ||
| P/S | 0.04 | ||
| P/FCF | 7.62 | ||
| P/OCF | 5.76 | ||
| P/B | 0.81 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | 5.77 |
EPS(TTM)2.2
EY8%
EPS(NY)2.89
Fwd EY10.49%
FCF(TTM)3.61
FCFY13.12%
OCF(TTM)4.77
OCFY17.35%
SpS718.15
BVpS33.93
TBVpS8.59
PEG (NY)2.23
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 |
F-Score5
WACC10.67%
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 Y5.61%
EPS Next 2Y14.78%
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-8.09%
Revenue Next 2Y-1.67%
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%