WORLD KINECT CORP (WKC) Stock Fundamental Analysis
NYSE:WKC - New York Stock Exchange, Inc. - US9814751064 - Common Stock - Currency: USD
Taking everything into account, WKC scores 4 out of 10 in our fundamental rating. WKC was compared to 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 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
With a Return On Assets value of 0.29%, WKC is not doing good in the industry: 66.82% of the companies in the same industry are doing better.
WKC has a worse Return On Equity (0.98%) than 63.03% of its industry peers.
WKC has a Return On Invested Capital of 5.52%. This is comparable to the rest of the industry: WKC outperforms 46.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WKC is significantly below the industry average of 23.79%.
| 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 68.25% of the companies in the same industry.
WKC's Profit Margin has declined in the last couple of years.
The Operating Margin of WKC (0.58%) is worse than 74.88% of its industry peers.
In the last couple of years the Operating Margin of WKC has declined.
Looking at the Gross Margin, with a value of 2.47%, WKC is doing worse than 77.25% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WKC is destroying value.
The number of shares outstanding for WKC has been reduced compared to 1 year ago.
Compared to 5 years ago, WKC has less shares outstanding
Compared to 1 year ago, WKC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.01 indicates that WKC is not in any danger for bankruptcy at the moment.
WKC has a better Altman-Z score (7.01) than 92.89% of its industry peers.
WKC has a debt to FCF ratio of 4.30. This is a neutral value as WKC would need 4.30 years to pay back of all of its debts.
The Debt to FCF ratio of WKC (4.30) is better than 67.30% 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.
WKC has a Debt to Equity ratio (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 7.01 |
ROIC/WACC0.51
WACC10.77%
2.3 Liquidity
A Current Ratio of 1.15 indicates that WKC should not have too much problems paying its short term obligations.
WKC has a Current ratio of 1.15. This is comparable to the rest of the industry: WKC outperforms 50.24% of its industry peers.
A Quick Ratio of 1.00 indicates that WKC may have some problems paying its short term obligations.
WKC has a Quick ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.28% 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 -11.93%.
The Revenue has been growing slightly by 2.75% on average over the past years.
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 small growth in Earnings Per Share. The EPS will grow by 5.97% on average per year.
The Revenue is expected to decrease by -4.90% on average over the next years.
EPS Next Y-0.08%
EPS Next 2Y12.28%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue Next Year-11.04%
Revenue Next 2Y-4.82%
Revenue Next 3Y-4.9%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.27 indicates a correct valuation of WKC.
Compared to the rest of the industry, the Price/Earnings ratio of WKC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, WKC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.58, the valuation of WKC can be described as reasonable.
Based on the Price/Forward Earnings ratio, WKC is valued a bit cheaper than 65.40% of the companies in the same industry.
WKC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WKC indicates a somewhat cheap valuation: WKC is cheaper than 65.88% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WKC indicates a rather cheap valuation: WKC is cheaper than 81.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.09 | ||
| EV/EBITDA | 6.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.28%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
WKC has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
WKC's Dividend Yield is comparable with the industry average which is at 6.48.
WKC's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
On average, the dividend of WKC grows each year by 15.67%, which is quite nice.
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 2Y12.28%
EPS Next 3Y5.97%
29.2
-0.23 (-0.78%)
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 Cap1.65B
Analysts47.27
Price Target31.62 (8.29%)
Short Float %8.81%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-2.36%
EPS NQ rev (3m)-21.02%
EPS NY rev (1m)-5.39%
EPS NY rev (3m)-16.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.62%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-11.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 10.58 | ||
| P/S | 0.04 | ||
| P/FCF | 8.09 | ||
| P/OCF | 6.12 | ||
| P/B | 0.86 | ||
| P/tB | 3.4 | ||
| EV/EBITDA | 6.05 |
EPS(TTM)2.2
EY7.53%
EPS(NY)2.76
Fwd EY9.45%
FCF(TTM)3.61
FCFY12.36%
OCF(TTM)4.77
OCFY16.35%
SpS718.15
BVpS33.93
TBVpS8.59
PEG (NY)N/A
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 | 7.01 |
F-Score5
WACC10.77%
ROIC/WACC0.51
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 Y-0.08%
EPS Next 2Y12.28%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.93%
Revenue growth 3Y10.4%
Revenue growth 5Y2.75%
Sales Q2Q%-13.69%
Revenue Next Year-11.04%
Revenue Next 2Y-4.82%
Revenue Next 3Y-4.9%
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%