WORLD KINECT CORP (WKC) Stock Fundamental Analysis
USA - NYSE:WKC - US9814751064 - Common Stock
26.1 USD
+0.25 (+0.97%)
26.1 USD
0 (0%)
Overall WKC gets a fundamental rating of 4 out of 10. We evaluated WKC against 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WKC was profitable.
WKC had a positive operating cash flow in the past year.
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
WKC's Return On Assets of -7.20% is on the low side compared to the rest of the industry. WKC is outperformed by 79.05% of its industry peers.
The Return On Equity of WKC (-26.99%) is worse than 81.90% of its industry peers.
WKC has a Return On Invested Capital (6.18%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WKC is significantly below the industry average of 21.75%.
The last Return On Invested Capital (6.18%) for WKC is above the 3 year average (5.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.2% | ||
| ROE | -26.99% | ||
| ROIC | 6.18% |
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.
WKC's Operating Margin of 0.63% is on the low side compared to the rest of the industry. WKC is outperformed by 74.76% of its industry peers.
In the last couple of years the Operating Margin of WKC has declined.
WKC has a worse Gross Margin (2.58%) than 75.71% 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 | 2.58% |
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.
Compared to 5 years ago, WKC has less shares outstanding
WKC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.01 indicates that WKC is not in any danger for bankruptcy at the moment.
WKC's Altman-Z score of 7.01 is amongst the best of the industry. WKC outperforms 91.90% of its industry peers.
WKC has a debt to FCF ratio of 2.51. This is a good value and a sign of high solvency as WKC would need 2.51 years to pay back of all of its debts.
WKC's Debt to FCF ratio of 2.51 is fine compared to the rest of the industry. WKC outperforms 78.57% of its industry peers.
WKC has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WKC (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 7.01 |
ROIC/WACC0.61
WACC10.07%
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 in line with its industry peers.
A Quick Ratio of 0.99 indicates that WKC may have some problems paying its short term obligations.
The Quick ratio of WKC (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.69% over the past year.
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 -15.23%.
WKC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.75% yearly.
EPS 1Y (TTM)5.69%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%-12.9%
Revenue 1Y (TTM)-15.23%
Revenue growth 3Y10.4%
Revenue growth 5Y2.75%
Sales Q2Q%-10.48%
3.2 Future
The Earnings Per Share is expected to grow by 13.61% on average over the next years. This is quite good.
WKC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.85% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.70 indicates a reasonable valuation of WKC.
WKC's Price/Earnings ratio is a bit cheaper when compared to the industry. WKC is cheaper than 70.00% of the companies in the same industry.
WKC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
The Price/Forward Earnings ratio is 9.39, which indicates a very decent valuation of WKC.
Based on the Price/Forward Earnings ratio, WKC is valued a bit cheaper than 76.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, WKC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
74.76% of the companies in the same industry are more expensive than WKC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WKC is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.57 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WKC's earnings are expected to grow with 13.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.11
PEG (5Y)N/A
EPS Next 2Y12.69%
EPS Next 3Y13.61%
5. Dividend
5.1 Amount
WKC has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
WKC's Dividend Yield is comparable with the industry average which is at 6.82.
WKC's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
On average, the dividend of WKC grows each year by 15.67%, which is quite nice.
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
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-9.21%
EPS Next 2Y12.69%
EPS Next 3Y13.61%
26.1
+0.25 (+0.97%)
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 Change3.14%
Market Cap1.45B
Revenue(TTM)37.65B
Net Income(TTM)-436600000
Analysts46
Price Target29.24 (12.03%)
Short Float %7.86%
Short Ratio6.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend0.66
Dividend Growth(5Y)15.67%
DP-9.21%
Div Incr Years6
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.5%
Min EPS beat(2)-11.87%
Max EPS beat(2)20.86%
EPS beat(4)3
Avg EPS beat(4)9.46%
Min EPS beat(4)-11.87%
Max EPS beat(4)22.77%
EPS beat(8)4
Avg EPS beat(8)4.98%
EPS beat(12)7
Avg EPS beat(12)4.33%
EPS beat(16)11
Avg EPS beat(16)8.95%
Revenue beat(2)0
Avg Revenue beat(2)-2.42%
Min Revenue beat(2)-3.98%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-5.47%
Min Revenue beat(4)-10.63%
Max Revenue beat(4)-0.86%
Revenue beat(8)0
Avg Revenue beat(8)-6.6%
Revenue beat(12)1
Avg Revenue beat(12)-6.42%
Revenue beat(16)4
Avg Revenue beat(16)-0.34%
PT rev (1m)1.18%
PT rev (3m)-7.53%
EPS NQ rev (1m)-11.7%
EPS NQ rev (3m)-11.18%
EPS NY rev (1m)0%
EPS NY rev (3m)3.85%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 9.39 | ||
| P/S | 0.04 | ||
| P/FCF | 4.57 | ||
| P/OCF | 3.82 | ||
| P/B | 0.9 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 5.15 |
EPS(TTM)2.23
EY8.54%
EPS(NY)2.78
Fwd EY10.65%
FCF(TTM)5.71
FCFY21.87%
OCF(TTM)6.83
OCFY26.15%
SpS677.86
BVpS29.13
TBVpS9.97
PEG (NY)3.11
PEG (5Y)N/A
Graham Number38.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.2% | ||
| ROE | -26.99% | ||
| ROCE | 8.15% | ||
| ROIC | 6.18% | ||
| ROICexc | 7.38% | ||
| ROICexgc | 13.12% | ||
| OM | 0.63% | ||
| PM (TTM) | N/A | ||
| GM | 2.58% | ||
| FCFM | 0.84% |
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%
ROICexgc growth 3Y-12.23%
ROICexgc 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 Turnover6.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.51 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 59.65% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 7.01 |
F-Score4
WACC10.07%
ROIC/WACC0.61
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)5.69%
EPS 3Y17.21%
EPS 5Y-5.33%
EPS Q2Q%-12.9%
EPS Next Y3.77%
EPS Next 2Y12.69%
EPS Next 3Y13.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.23%
Revenue growth 3Y10.4%
Revenue growth 5Y2.75%
Sales Q2Q%-10.48%
Revenue Next Year-12.79%
Revenue Next 2Y-5.61%
Revenue Next 3Y-4.85%
Revenue Next 5YN/A
EBIT growth 1Y10.39%
EBIT growth 3Y17.01%
EBIT growth 5Y-5.07%
EBIT Next Year40.39%
EBIT Next 3Y16.41%
EBIT Next 5YN/A
FCF growth 1Y269.9%
FCF growth 3Y12.73%
FCF growth 5Y5.34%
OCF growth 1Y115.4%
OCF growth 3Y14.52%
OCF growth 5Y2.59%
WORLD KINECT CORP / WKC FAQ
Can you provide the ChartMill fundamental rating for WORLD KINECT CORP?
ChartMill assigns a fundamental rating of 4 / 10 to WKC.
What is the valuation status of WORLD KINECT CORP (WKC) stock?
ChartMill assigns a valuation rating of 6 / 10 to WORLD KINECT CORP (WKC). This can be considered as Fairly Valued.
What is the profitability of WKC stock?
WORLD KINECT CORP (WKC) has a profitability rating of 3 / 10.
What is the financial health of WORLD KINECT CORP (WKC) stock?
The financial health rating of WORLD KINECT CORP (WKC) is 5 / 10.
How sustainable is the dividend of WORLD KINECT CORP (WKC) stock?
The dividend rating of WORLD KINECT CORP (WKC) is 5 / 10 and the dividend payout ratio is -9.21%.