WORLD KINECT CORP (WKC) Stock Fundamental Analysis
USA - NYSE:WKC - US9814751064 - Common Stock
25.71 USD
-0.27 (-1.04%)
25.71 USD
0 (0%)
WKC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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.
In the past 5 years WKC has always been profitable.
WKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WKC (-7.08%) is worse than 79.15% of its industry peers.
WKC has a worse Return On Equity (-26.82%) than 81.99% 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 57.35% of its industry peers.
WKC had an Average Return On Invested Capital over the past 3 years of 5.64%. This is significantly below the industry average of 21.55%.
The last Return On Invested Capital (6.33%) for WKC is above the 3 year average (5.64%), which is a sign of increasing profitability.
| 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.
With a Operating Margin value of 0.63%, WKC is not doing good in the industry: 75.36% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of WKC has declined.
WKC has a Gross Margin of 2.55%. This is in the lower half of the industry: WKC underperforms 75.83% of its industry peers.
WKC's Gross Margin has declined in the last couple of years.
| 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
WKC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WKC has less shares outstanding
The number of shares outstanding for WKC has been reduced compared to 5 years ago.
Compared to 1 year ago, WKC has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 7.18, WKC belongs to the top of the industry, outperforming 91.00% 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 63.51% 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.
WKC's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. WKC outperforms 48.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 7.18 |
ROIC/WACC0.62
WACC10.28%
2.3 Liquidity
WKC has a Current Ratio of 1.13. 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 of 1.13. This is comparable to the rest of the industry: WKC outperforms 49.29% of its industry peers.
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 53.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.59% over the past year.
The Earnings Per Share has been decreasing by -5.33% on average over the past years.
WKC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.07%.
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
The Earnings Per Share is expected to grow by 13.61% on average over the next years. This is quite good.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WKC is valuated reasonably with a Price/Earnings ratio of 11.13.
Based on the Price/Earnings ratio, WKC is valued a bit cheaper than 71.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of WKC to the average of the S&P500 Index (27.76), we can say WKC is valued rather cheaply.
WKC is valuated reasonably with a Price/Forward Earnings ratio of 9.25.
WKC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WKC is cheaper than 75.83% of the companies in the same industry.
WKC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WKC is valued a bit cheaper than the industry average as 73.46% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WKC indicates a somewhat cheap valuation: WKC is cheaper than 79.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.03 | ||
| EV/EBITDA | 5.33 |
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 13.61% in the coming years.
PEG (NY)2.95
PEG (5Y)N/A
EPS Next 2Y12.69%
EPS Next 3Y13.61%
5. Dividend
5.1 Amount
WKC has a Yearly Dividend Yield of 3.07%.
WKC's Dividend Yield is comparable with the industry average which is at 6.08.
Compared to an average S&P500 Dividend Yield of 2.44, WKC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of WKC is nicely growing with an annual growth rate of 15.67%!
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
The earnings of WKC are negative and hence is the payout ratio. WKC will probably not be able to sustain this dividend level.
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%
25.71
-0.27 (-1.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners113.66%
Inst Owner ChangeN/A
Ins Owners3.82%
Ins Owner Change2.98%
Market Cap1.43B
Analysts46
Price Target28.9 (12.41%)
Short Float %9.82%
Short Ratio7.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)0%
PT rev (3m)-8.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 9.25 | ||
| P/S | 0.04 | ||
| P/FCF | 9.03 | ||
| P/OCF | 6.36 | ||
| P/B | 0.89 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 5.33 |
EPS(TTM)2.31
EY8.98%
EPS(NY)2.78
Fwd EY10.82%
FCF(TTM)2.85
FCFY11.08%
OCF(TTM)4.04
OCFY15.72%
SpS697.64
BVpS28.78
TBVpS9.45
PEG (NY)2.95
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 | 7.18 |
F-Score4
WACC10.28%
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 Year40.39%
EBIT Next 3Y16.41%
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%