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Kirby Corp. (KEX)
NYSE:KEX
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Kirby
(NYSE:KEX)
65Neutral
Positive Factors
Barge Activity and Pricing
Spot and term pricing for inland tank barges should continue to benefit from increasing barge activity, which was impressive with sequential and annual increases driven by petchem volumes.
Earnings Growth
KEX posted 2Q24 EPS of $1.43 up 50% year-year, above target and Street’s estimate.
Financial Performance
KEX management updated their operating cash flow and CAPEX guidance, highlighting significant free cash flow which could lead to substantial stock repurchases.
Negative Factors
Industry Headwinds
Petrochemical and refinery utilization in the Houston area could face some near-term headwinds with over 1 million people still without power.
Operational Challenges
Severe weather along the Gulf Coast saw barge volumes down around 10% year-on-year.
Revenue Deceleration
Suspected intra-day stock weakness may be due in part to Distribution and Services Power Generation revenue deceleration.
Kirby (KEX) vs. S&P 500 (SPY)
Market Cap
$5.85B
Dividend YieldN/A
Average Volume (3M)576.41K
Price to Earnings (P/E)21.0
Beta (1Y)1.23
Revenue Growth5.64%
EPS Growth31.91%
CountryUS
Employees5,414
SectorIndustrials
Sector Strength67
IndustryTransportation
Share Statistics
EPS (TTM)4.91
Shares Outstanding56,897,000
10 Day Avg. Volume581,192
30 Day Avg. Volume576,407
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)N/A
Price to Sales (P/S)1.77
Price to Cash Flow (P/CF)5.90
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$134.50Price Target Upside30.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Kirby Business Overview & Revenue Model
Company DescriptionKirby Corporation operates domestic tank barges in the United States. Its Marine Transportation segment provides marine transportation service and towing vessel transporting bulk liquid product, as well as operates tank barge throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along three United States coasts, and in Alaska and Hawaii. It also transport petrochemical, black oil, refined petroleum product, and agricultural chemicals by tank barge; and operates offshore dry-bulk barge and tugboat unit that are engaged in the offshore transportation of dry-bulk cargo in the United States coastal trade. As of December 31, 2021, it owned and operated 1,025 inland tank barge, approximately 255 inland towboat, 31 coastal tank barge, 29 coastal tugboat, 4 offshore dry-bulk cargo barge, 4 offshore tugboat, and 1 docking tugboat. Its Distribution and Services segment sells after-market service and genuine replacement part for engine, transmission, reduction gear, electric motor, drive, and control, electrical distribution and control system, energy storage battery system, and related oilfield service equipment; rebuild component parts or diesel engine, transmission and reduction gear, and related equipment used in oilfield service, marine, power generation, on-highway, and other industrial applications; rents generator, industrial compressor, high capacity lift truck, and refrigeration trailer; and manufactures and remanufactures oilfield service equipment, including pressure pumping unit, as well as manufacturers electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems for oilfield customer. It serves to various companies and the United States government. The company was formerly known as Kirby Exploration Company, Inc. and changed its name to Kirby Corporation in 1990. Kirby Corporation was founded in 1921 and is headquartered in Houston, Texas.
How the Company Makes MoneyKirby Corporation generates revenue primarily through two main segments: Marine Transportation and Diesel Engine Services. The Marine Transportation segment is the largest contributor, where Kirby operates a fleet of inland and coastal tank barges and towing vessels, generating income by providing transportation services for a variety of liquid cargoes. The Diesel Engine Services segment earns revenue by providing overhaul and repair services for engines, sales of engine parts, and field services. Kirby's earnings are significantly influenced by the demand in the petrochemical and refining industries, changes in oil prices, and the overall economic climate affecting its key markets.
Kirby Financial Statement Overview
Summary
Kirby has displayed strong revenue growth and improved profitability, with a notable increase in EBIT and EBITDA margins. The balance sheet is robust with no debt in 2024, but the zero total assets figure is concerning. Cash flow management showed strength but raises concerns due to the absence of data in 2024.Income Statement
Kirby has shown consistent revenue growth from 2020 to 2024, with a notable increase in gross profit margin and net income in the latest year. The EBIT and EBITDA margins have also improved significantly, indicating better operational efficiency. However, the company faced challenges in 2021 with negative EBIT and EBITDA, which could indicate past operational inefficiencies.75
Positive
Balance Sheet
The debt-to-equity ratio is favorable, with the company having zero total debt in 2024, reflecting strong financial stability. The return on equity has improved due to increased net income, indicating effective utilization of equity. The equity ratio is stable, suggesting good financial health, but the total assets were recorded as zero in the latest year, which might be an error or requires further clarification.70
Positive
Cash Flow
Kirby has shown fluctuations in free cash flow growth, with a positive growth rate from 2021 to 2023 but no free cash flow reported in 2024, which might indicate reinvestment or other strategic financial moves. The operating cash flow to net income ratio was favorable in 2023, but the absence of operating cash flow data in 2024 raises concerns about liquidity management.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.27B | 3.09B | 2.78B | 2.25B | 2.17B | Gross Profit |
| 825.20M | 700.06M | 522.37M | 379.98M | 440.67M | EBIT |
| 399.10M | 335.09M | -159.00K | -126.90M | -71.38M | EBITDA |
| 690.23M | 546.04M | 399.95M | -31.88M | -162.48M | Net Income Common Stockholders |
| 286.71M | 222.94M | 122.29M | -246.77M | -271.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 74.44M | 32.58M | 80.58M | 34.81M | 80.34M | Total Assets |
| 5.85B | 5.72B | 5.55B | 5.40B | 5.92B | Total Debt |
| 1.06B | 1.19B | 1.26B | 1.36B | 1.66B | Net Debt |
| -74.44M | 1.16B | 1.18B | 1.32B | 1.58B | Total Liabilities |
| 2.50B | 2.54B | 2.51B | 2.51B | 2.84B | Stockholders Equity |
| 3.30B | 3.19B | 3.05B | 2.89B | 3.09B |
| Cash Flow | Free Cash Flow | |||
| 413.83M | 138.50M | 121.52M | 223.56M | 296.75M | Operating Cash Flow |
| 756.49M | 540.23M | 294.13M | 321.58M | 444.94M | Investing Cash Flow |
| -400.13M | -413.15M | -139.60M | -55.79M | -485.85M | Financing Cash Flow |
| -314.50M | -175.08M | -108.76M | -311.31M | 96.51M |
Kirby Technical Analysis
Neutral
102.89
Price Trends
104.38
Negative
110.79
Negative
115.35
Negative
Market Momentum
-0.20
Negative
53.07
Neutral
72.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEX, the sentiment is Neutral. The current price of 102.89 is above the 20-day moving average (MA) of 99.88, below the 50-day MA of 104.38, and below the 200-day MA of 115.35, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 72.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KEX.
Kirby Risk Analysis
Kirby disclosed 28 risk factors in its most recent earnings report. Kirby reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kirby Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $73.29B | 12.57 | 20.78% | 6.21% | 12.71% | 6.74% | |
71 Outperform | $62.73B | 24.34 | 8.54% | 4.04% | -0.55% | 10.02% | |
71 Outperform | $44.07B | 35.83 | 47.62% | 1.48% | 6.45% | 56.33% | |
66 Neutral | $61.61B | 19.57 | 18.11% | 3.95% | 24.16% | -6.58% | |
65 Neutral | $5.85B | 20.96 | 8.77% | ― | 5.64% | 31.91% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% |
* Industrials Sector Average
Performance Comparison
KEX
Kirby
102.89
8.24
8.71%
ENB
Enbridge
44.36
10.78
32.10%
EPD
Enterprise Products Partners
33.95
6.56
23.95%
KMI
Kinder Morgan
28.23
10.74
61.41%
OKE
Oneok
98.68
22.49
29.52%
TRGP
Targa Resources
199.01
89.03
80.95%
Kirby Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -3.44% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with strong financial performance and growth in certain segments like power generation and coastal marine transportation. However, challenges included significant inventory write-downs, declines in oil and gas revenues, and seasonal as well as weather-related impacts on operations. Despite these challenges, the company remains optimistic about future growth and market conditions.Highlights
Strong Year-over-Year Financial Performance
Adjusted earnings per share increased by 24% year-over-year, reflecting good execution despite seasonal challenges.
Significant Free Cash Flow Generation
Over $151 million of free cash flow was generated in the quarter, used to pay down $105 million in debt and repurchase $33 million of stock.
Inland Marine Term Contract Renewals
Term contract renewals in inland marine transportation saw high single-digit increases versus a year ago, with operating margins around 20%.
Coastal Market Performance
Coastal barge utilization was in the mid-to-high 90% range, with term contract renewals increasing in the mid to high 20% year-over-year.
Power Generation Growth
Power generation revenues grew 36% year-over-year, with the segment benefiting from strong demand and several large project wins.
Lowlights
Non-Cash Inventory Write-Down
A $56.3 million non-cash inventory impairment charge was recorded due to weak market conditions for conventional diesel fracturing equipment.
Oil and Gas Revenue Decline
Revenues in the oil and gas segment decreased by 38% year-over-year and 24% sequentially due to softness in conventional oil and gas business.
Seasonal Softness and Weather Impacts
The fourth quarter experienced seasonal softness and weather-related challenges, impacting marine transportation operations and margins.
Commercial and Industrial Revenue Decline
Commercial and industrial market revenues were down 7% year-over-year, driven by softness in on-highway truck service and repair.
Company Guidance
In the Kirby Corporation's 2024 Fourth Quarter Earnings Call, executives provided detailed guidance on various performance metrics and future expectations. The company reported adjusted earnings per share of $1.29, reflecting a 24% year-over-year increase. Free cash flow exceeded $151 million, enabling debt reduction by $105 million and $33 million in stock repurchases. Inland marine transportation maintained barge utilization rates in the 90% range, with operating margins around 20%. Coastal operations saw utilization in the mid-to-high 90% range, with term contract renewals increasing by 20-30% year-over-year. Distribution and services achieved a 36% year-over-year revenue growth in power generation, despite a 38% decline in oil and gas revenues. Overall, Kirby anticipates a strong 2025 with a projected 15-25% increase in earnings per share, driven by favorable market conditions and disciplined capital allocation.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.