WORLD KINECT CORP (WKC) Stock Fundamental Analysis
USA - NYSE:WKC - US9814751064 - Common Stock
25.42 USD
+0.05 (+0.2%)
25.42 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WKC. WKC was compared to 210 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
WKC had positive earnings in the past year.
In the past year WKC had a positive cash flow from operations.
Each year in the past 5 years WKC has been profitable.
WKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -7.08%, WKC is doing worse than 78.57% of the companies in the same industry.
The Return On Equity of WKC (-26.82%) is worse than 81.43% of its industry peers.
WKC has a Return On Invested Capital of 6.33%. This is comparable to the rest of the industry: WKC outperforms 56.19% 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 21.90%.
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
WKC's Profit Margin has declined in the last couple of years.
WKC has a worse Operating Margin (0.63%) than 74.76% of its industry peers.
WKC's Operating Margin has declined in the last couple of years.
WKC's Gross Margin of 2.55% is on the low side compared to the rest of the industry. WKC is outperformed by 76.19% 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
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
An Altman-Z score of 7.18 indicates that WKC is not in any danger for bankruptcy at the moment.
The Altman-Z score of WKC (7.18) is better than 91.43% of its industry peers.
The Debt to FCF ratio of WKC is 5.17, which is a neutral value as it means it would take WKC, 5.17 years of fcf income to pay off all of its debts.
WKC has a Debt to FCF ratio of 5.17. This is in the better half of the industry: WKC outperforms 63.81% 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.
With a Debt to Equity ratio value of 0.48, WKC perfoms like the industry average, outperforming 49.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 7.18 |
ROIC/WACC0.62
WACC10.2%
2.3 Liquidity
A Current Ratio of 1.13 indicates that WKC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.13, WKC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that WKC may have some problems paying its short term obligations.
WKC has a Quick ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
WKC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.59%, which is quite good.
WKC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.33% yearly.
Looking at the last year, WKC shows a very negative growth in Revenue. The Revenue has decreased by -16.07% in the last year.
The Revenue has been growing slightly by 2.75% on average over the past years.
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
Based on estimates for the next years, WKC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.61% on average per year.
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
A Price/Earnings ratio of 11.00 indicates a reasonable valuation of WKC.
Based on the Price/Earnings ratio, WKC is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
WKC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
A Price/Forward Earnings ratio of 9.14 indicates a reasonable valuation of WKC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WKC indicates a somewhat cheap valuation: WKC is cheaper than 76.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, WKC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
74.29% of the companies in the same industry are more expensive than WKC, based on the Enterprise Value to EBITDA ratio.
WKC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WKC is cheaper than 80.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 5.24 |
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 13.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.92
PEG (5Y)N/A
EPS Next 2Y12.69%
EPS Next 3Y13.61%
5. Dividend
5.1 Amount
WKC has a Yearly Dividend Yield of 2.99%.
Compared to an average industry Dividend Yield of 6.15, WKC has a dividend in line with its industry peers.
WKC's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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 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
WKC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
WKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-9.14%
EPS Next 2Y12.69%
EPS Next 3Y13.61%
25.42
+0.05 (+0.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners113.3%
Inst Owner ChangeN/A
Ins Owners3.74%
Ins Owner Change11.22%
Market Cap1.41B
Analysts46
Price Target28.9 (13.69%)
Short Float %9.69%
Short Ratio8.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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)-6.59%
PT rev (3m)-8.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.78%
EPS NY rev (1m)3.85%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-1.97%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 9.14 | ||
| P/S | 0.04 | ||
| P/FCF | 8.92 | ||
| P/OCF | 6.29 | ||
| P/B | 0.88 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)2.31
EY9.09%
EPS(NY)2.78
Fwd EY10.94%
FCF(TTM)2.85
FCFY11.21%
OCF(TTM)4.04
OCFY15.89%
SpS697.64
BVpS28.78
TBVpS9.45
PEG (NY)2.92
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
WACC10.2%
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 Year41.85%
EBIT Next 3Y18.2%
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%