Kirby (KEX) AI Stock Analysis

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Kirby

(NYSE:KEX)

Rating:67Neutral

Price Target:―

Kirby's stock is supported by strong financial performance, particularly in revenue and operational efficiency. The balance sheet shows zero debt, indicating robust financial health, but the cash flow concerns in 2024 need attention. Technical indicators suggest mixed momentum with a potential overbought condition. Valuation is moderate without a dividend yield, offset by positive earnings call sentiment highlighting growth and pricing improvements. Overall, the stock score reflects strengths in financial performance and earnings growth, tempered by technical and cash flow concerns.

Positive Factors

Earnings

Analysts are confident in the company's ability to improve margins significantly in the coming quarters.

Market Trends

CEO Grzebinski sees Inland spot rates on a gradual upward trend, hovering around $10,000 - $10,500/day for a 30,000 two-barge and boat tow.

Revenue Growth

KEX targets double-digit margins longer term in Distribution and Services, with anticipation of power generation revenues improving sequentially.

Negative Factors

Cost Implications

Capacity remains favorable given high new build costs at $4.7 million, which supports a solid backdrop for margin progression at its Inland Marine segment.

Market Dynamics

Modest pressure in chemicals is tied to European market dynamics.

Operational Challenges

Coastal Marine faces significant headwinds in the first quarter due to additional shipyard dockings.

Kirby (KEX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.30B

Dividend YieldN/A

Average Volume (3M)494.90K

Price to Earnings (P/E)22.3

Beta (1Y)1.23

Revenue Growth2.99%

EPS Growth19.03%

CountryUS

Employees5,414

SectorIndustrials

Sector Strength84

IndustryMarine Shipping

Share Statistics

EPS (TTM)1.33

Shares Outstanding56,100,000

10 Day Avg. Volume466,942

30 Day Avg. Volume494,903

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)1.47

Price to Sales (P/S)0.00

P/FCF Ratio33.73

Enterprise Value/Market Cap0.93

Enterprise Value/Revenue0.45

Enterprise Value/Gross Profit6.98

Enterprise Value/Ebitda2.21

Forecast

1Y Price Target

$126.67

Price Target Upside10.43% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Kirby Business Overview & Revenue Model

Company DescriptionKirby Corporation (KEX) is a leading American transportation company primarily focused on the inland tank barge industry in the United States. The company operates in two main segments: marine transportation and distribution and services. Kirby's core services include transporting bulk liquid products, such as petrochemicals and refined petroleum products, using its extensive fleet of inland and coastal barges and towing vessels. Additionally, Kirby provides diesel engine services, parts distribution, and related services to various industries, including marine, power generation, and oilfield services.

How the Company Makes MoneyKirby Corporation generates revenue primarily through its marine transportation segment, which involves transporting bulk liquid products across the United States using its fleet of barges and towing vessels. This segment charges customers based on the volume and distance of transported cargo, often entering into long-term contracts to ensure steady income. Another significant revenue stream comes from the distribution and services segment, where Kirby offers engine services, parts, and related support primarily for the marine and oilfield sectors. The company benefits from strategic partnerships and long-standing customer relationships, which contribute to its stable revenue base.

Kirby Key Performance Indicators (KPIs)

Any

Total Ton Miles

Chart InsightsKirby's Total Ton Miles have shown a declining trend since mid-2023, likely influenced by increased delay days in Inland Marine due to adverse weather conditions. Despite this, the company reported strong earnings growth and improved utilization rates in both Inland and Coastal Marine segments. The earnings call highlighted a positive outlook with rising spot prices and contract renewals, suggesting potential recovery in transportation metrics. However, challenges like supply delays in Power Generation and planned maintenance in Coastal Marine could continue to impact short-term performance.

Data provided by:

Main Street Data

Kirby Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 19.03%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Positive

The earnings call reflects a generally positive sentiment with significant earnings growth and improvements in marine segment utilization and pricing, despite challenges from weather impacts and supply delays.

Q1-2025 Updates

Positive Updates

Strong Earnings Per Share Growth

Earnings per share for the first quarter increased to $1.33 from $1.19 in the same period last year.

Inland Marine Utilization and Pricing

Inland marine barge utilization rates were in the low to mid-90% range, with spot prices up in the low single digits sequentially and high single digits year-over-year.

Coastal Marine Pricing Improvements

Coastal marine term contract renewals saw mid-20% range price increases, with barge utilization levels in the mid to high 90% range.

Oil and Gas Operating Income Surge

Despite a revenue decline, operating income in the oil and gas sector increased by 123% year-over-year.

Negative Updates

Weather and Navigational Challenges

Delay days in Inland Marine increased 50% compared to the fourth quarter of 2024 and 15% from the same period last year due to winter storms, high winds, and fog.

Supply Delays in Power Generation

Power generation revenues declined by 23% year-over-year due to supply delays, pushing some projects out of the quarter.

Coastal Marine Revenue Decline

Coastal marine revenues decreased 6% year-over-year, impacted by planned shipyard maintenance on several large vessels.

Company Guidance

During the Kirby Corporation 2025 First Quarter Earnings Conference Call, the company announced earnings per share of $1.33, an increase from $1.19 in the first quarter of 2024. Marine Transportation segment revenues were $476 million, with an operating margin of 18.2%, reflecting a 4% year-over-year increase in operating income. Inland Marine Transportation experienced a 50% increase in delay days sequentially, with barge utilization rates in the low to mid-90% range. Spot prices rose in the low single digits sequentially and high single digits year-over-year. Coastal Marine saw utilization in the mid to high 90% range, with term contract renewals up by mid-20%. Distribution and Services segment revenues were $310 million, with operating margins of 7.3%. Power Generation revenues decreased 23% year-over-year due to supply delays, but oil and gas operating income increased 123% year-over-year. The company anticipates continued growth and improving financial results through 2025, maintaining their commitment to a balanced capital allocation approach, which includes share repurchases and potential acquisitions.

Kirby Financial Statement Overview

Summary

Kirby demonstrates strong revenue growth and profitability, with improved operational efficiency reflected in higher EBIT and EBITDA margins. The balance sheet is robust, with no debt reported in 2024, though the zero total assets figure requires verification. Cash flow management shows strengths in previous years but raises concerns in 2024 due to missing data, indicating potential liquidity challenges.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.24B	3.27B	3.09B	2.78B	2.25B	2.17B
Gross Profit	835.09M	825.20M	700.06M	522.37M	379.98M	440.67M
EBITDA	663.49M	652.21M	546.04M	399.95M	-31.88M	-162.48M
Net Income	292.63M	286.71M	222.94M	122.29M	-246.95M	-272.55M
Balance Sheet
Total Assets	6.08B	5.85B	5.72B	5.55B	5.40B	5.92B
Cash, Cash Equivalents and Short-Term Investments	24.74M	74.44M	32.58M	80.58M	34.81M	80.34M
Total Debt	1.54B	1.06B	1.19B	1.26B	1.36B	1.66B
Total Liabilities	2.71B	2.57B	2.54B	2.51B	2.51B	2.84B
Stockholders Equity	3.37B	3.35B	3.19B	3.04B	2.89B	3.08B
Cash Flow
Free Cash Flow	-327.48M	413.83M	138.50M	121.52M	223.56M	296.75M
Operating Cash Flow	12.82M	756.49M	540.23M	294.13M	321.58M	444.94M
Investing Cash Flow	-497.35M	-400.13M	-413.15M	-139.60M	-55.79M	-485.85M
Financing Cash Flow	-196.54M	-314.50M	-175.08M	-108.76M	-311.31M	96.51M

Kirby Technical Analysis

Technical Analysis Sentiment

Positive

Last Price114.71

Price Trends

50DMA

106.63

Positive

100DMA

103.82

Positive

200DMA

110.95

Positive

Market Momentum

MACD

1.73

Positive

RSI

62.57

Neutral

STOCH

71.37

Neutral

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 114.71 is above the 20-day moving average (MA) of 112.44, above the 50-day MA of 106.63, and above the 200-day MA of 110.95, indicating a bullish trend. The MACD of 1.73 indicates Positive momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (71)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZIM	79 Outperform	$1.85B	0.79	72.40%	19.27%	65.83%	―
DAC	78 Outperform	$1.59B	3.57	14.14%	3.90%	4.93%	-17.08%
SBLK	76 Outperform	$2.01B	8.58	11.09%	1.17%	25.60%	-9.32%
MATX	74 Outperform	$3.55B	7.17	20.48%	1.25%	11.88%	80.21%
Sector *	71 Outperform	¥249.80B	12.82	8.49%	3.14%	6.31%	12.92%
GOGL	68 Neutral	$1.52B	13.27	6.06%	2.63%	-7.73%	-39.13%
KEX	67 Neutral	$6.30B	22.27	8.95%	―	2.99%	19.03%

* Industrials Sector Average

Performance Comparison

KEX

Kirby

114.71

-5.02

-4.19%

DAC

Danaos

86.87

-1.90

-2.14%

SBLK

Star Bulk Carriers

17.09

-5.46

-24.21%

MATX

Matson

108.67

-20.90

-16.13%

GOGL

Golden Ocean Group

7.52

-5.16

-40.69%

ZIM

ZIM Integrated Shipping Services

15.67

1.81

13.06%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 02, 2025