Kirby (KEX) AI Stock Analysis

• Market Cap: $6.83B
• Dividend Yield: N/A
• Average Volume (3M): 644.85K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.37
• Revenue Growth: 1.59%
• EPS Growth: 3.35%
• Country: US
• Employees: 5,414
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 1.65
• Shares Outstanding: 54,200,000
• 10 Day Avg. Volume: 638,935
• 30 Day Avg. Volume: 644,852
• PEG Ratio: 0.66
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 14.81
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 7.17
• Enterprise Value/Ebitda: 8.83
• 1Y Price Target: $132.25
• Price Target Upside: 4.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $128.00 ▲(1.60% Upside)

Kirby's strong financial performance, particularly in revenue growth and profitability, is a key strength. The bullish technical indicators and positive corporate events further support the stock's outlook. However, cash flow management issues and challenges in certain segments like inland transportation pose risks that need to be addressed.

Positive Factors

Revenue Growth

Strong revenue growth reflects Kirby's ability to capture market demand, particularly in marine shipping, supporting long-term business expansion.

Coastal Operations

High utilization and strong margins in coastal operations indicate a solid market position, contributing to sustainable profitability.

Power Generation Growth

Significant growth in power generation revenues highlights Kirby's successful diversification and potential for continued sector expansion.

Negative Factors

Cash Flow Management

Challenges in cash flow management can hinder Kirby's ability to reinvest in its business, impacting long-term operational flexibility.

Inland Marine Challenges

Softness in inland marine transportation could affect revenue stability, requiring strategic adjustments to maintain segment performance.

Oil and Gas Revenue Decline

A significant decline in oil and gas revenues suggests sector-specific challenges, potentially impacting Kirby's overall revenue mix.

Kirby Business Overview & Revenue Model

Company Description

Kirby 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 Money

Kirby generates revenue primarily through the sale of its cleaning equipment and accessories. The company employs a direct sales model, utilizing a network of independent distributors who sell products directly to consumers, which allows for higher margins compared to traditional retail channels. Key revenue streams include the sale of vacuum cleaners, replacement parts, and cleaning solutions. Additionally, Kirby benefits from recurring revenue through service contracts and warranties for its products. Strategic partnerships with distributors and a strong emphasis on customer service contribute to customer retention and repeat sales, further enhancing the company's earnings.

Kirby Financial Statement Overview

Summary

Kirby shows strong revenue growth and profitability with solid margins and a stable balance sheet. However, cash flow management is a concern, with negative free cash flow growth and low cash conversion ratios. Addressing these issues is crucial for long-term sustainability.

Income Statement

Kirby has demonstrated strong revenue growth with a TTM revenue growth rate of 22.2%, indicating robust demand in the marine shipping industry. The company maintains healthy profitability metrics, with a gross profit margin of 25.8% and a net profit margin of 9.2% in the TTM period. The EBIT and EBITDA margins have also improved, reflecting efficient cost management. Overall, the income statement shows a positive trajectory in revenue and profitability.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.063 in the TTM period, indicating low leverage and financial stability. Return on equity has improved to 9.1%, showcasing effective utilization of equity to generate profits. The equity ratio remains strong, suggesting a well-capitalized structure. However, the company should monitor its debt levels to maintain this stability.

Cash Flow

Cash flow performance is mixed, with a significant decline in free cash flow growth, which is concerning. The operating cash flow to net income ratio is low at 0.065, indicating potential challenges in converting income into cash. The negative free cash flow to net income ratio highlights cash flow management issues. While the company has shown strong revenue growth, improving cash flow generation will be crucial for sustaining long-term operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.31B	3.27B	3.09B	2.78B	2.25B	2.17B
Gross Profit	856.36M	825.20M	700.06M	522.37M	379.98M	440.67M
EBITDA	694.77M	652.21M	557.29M	411.01M	-34.41M	-192.69M
Net Income	305.58M	286.71M	222.94M	122.29M	-246.95M	-272.55M
Balance Sheet
Total Assets	6.06B	5.85B	5.72B	5.55B	5.40B	5.92B
Cash, Cash Equivalents and Short-Term Investments	47.02M	74.44M	32.58M	80.58M	34.81M	80.34M
Total Debt	1.25B	1.06B	1.19B	1.26B	1.36B	1.66B
Total Liabilities	2.70B	2.50B	2.54B	2.51B	2.51B	2.84B
Stockholders Equity	3.36B	3.35B	3.19B	3.04B	2.89B	3.08B
Cash Flow
Free Cash Flow	291.27M	413.83M	138.50M	121.52M	223.56M	296.75M
Operating Cash Flow	605.38M	756.49M	540.23M	294.13M	321.58M	444.94M
Investing Cash Flow	-401.29M	-400.13M	-413.15M	-139.60M	-55.79M	-485.85M
Financing Cash Flow	-224.13M	-314.50M	-175.08M	-108.76M	-311.31M	96.51M

Kirby Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEX, the sentiment is Positive. The current price of 125.99 is above the 20-day moving average (MA) of 113.05, above the 50-day MA of 110.09, and above the 200-day MA of 102.74, indicating a bullish trend. The MACD of 3.21 indicates Negative momentum. The RSI at 83.17 is Negative, neither overbought nor oversold. The STOCH value of 91.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KEX.

Kirby Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAC	81 Outperform	$1.81B	3.94	13.16%	3.64%	3.82%	-13.73%
KEX	77 Outperform	$6.83B	23.38	9.17%	―	1.59%	3.35%
MATX	77 Outperform	$4.09B	10.05	16.38%	1.13%	1.88%	9.30%
CMRE	76 Outperform	$1.96B	6.46	14.98%	2.94%	-29.82%	-16.77%
SBLK	67 Neutral	$2.38B	37.40	2.50%	1.59%	-13.87%	-82.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIM	62 Neutral	$2.70B	2.69	25.25%	20.35%	1.63%	-30.30%