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World Kinect (WKC)
NYSE:WKC
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World Kinect
(NYSE:WKC)
59Neutral
Positive Factors
Dividend Growth
World Kinect increased its quarterly dividend 21%, from $0.14/sh to $0.17/sh, as the company has posted a 14% dividend CAGR from 2020 to 2023.
Share Repurchase Program
World Kinect Corporation (WKC) added $200 mil to its share repurchase authorization, resulting in a total ~$308 mil potential buyback.
Negative Factors
Financial Performance
Financial results did not meet consensus expectations, impacting the investment outlook.
World Kinect (WKC) vs. S&P 500 (SPY)
Market Cap
$1.37B
Dividend Yield2.82%
Average Volume (3M)900.92K
Price to Earnings (P/E)107.4
Beta (1Y)0.94
Revenue Growth-11.87%
EPS Growth-74.55%
CountryUS
Employees4,745
SectorEnergy
Sector Strength51
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)0.23
Shares Outstanding56,749,400
10 Day Avg. Volume800,124
30 Day Avg. Volume900,924
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)N/A
Price to Sales (P/S)0.04
Price to Cash Flow (P/CF)3.30
P/FCF Ratio3.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.67Price Target Upside18.77% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
World Kinect Business Overview & Revenue Model
Company DescriptionWorld Kinect Corporation engages in the distribution of fuel and related products and services in the aviation, marine and land transportation industries worldwide. Its Aviation segment supplies fuel and related products and services to commercial airlines, second and third tier airlines, cargo carriers, regional and low-cost carriers, airports, fixed based operators, corporate fleets, charters, fractional operators, private aircraft, the U.S., foreign governments, intergovernmental, and military customers. This segment also offers fuel management, price risk management, ground handling, dispatch services and trip planning services, such as flight planning and scheduling, weather reports and overflight permits. Its Land segment offers fuel, lubricants, heating oil, natural gas, power, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also offers energy procurement management, price risk management, and sustainability solutions, such as carbon management and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; and distributes heating oil and unbranded fuel, as well as offers transportation logistics. Its Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S., foreign governments, and other fuel suppliers. Its marine fuel-related services include management services to procure fuel, cost control, quality control, and claims management services. This segment also engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.
How the Company Makes MoneyWorld Kinect Corporation generates revenue through its diversified service offerings, primarily centered around energy solutions and supply chain management. The company earns income by providing fuel supply and logistics services, where it sources, transports, and delivers fuel to clients across various industries. Additionally, WKC offers energy procurement services, allowing businesses to manage and optimize their energy consumption effectively, often through long-term contracts and strategic partnerships. Furthermore, WKC's sustainability consulting services provide tailored solutions that help clients reduce their environmental impact and achieve sustainability goals, adding another revenue stream. Key partnerships with energy producers, logistics providers, and technology firms enhance its service offerings, contributing significantly to its earnings.
World Kinect Financial Statement Overview
Summary
World Kinect shows a stable financial standing with room for improvement in profitability and revenue growth. The income statement reflects industry pressure on margins and growth. The balance sheet is stable with a solid equity position and manageable leverage, though returns are low. Cash flows are strong, enhancing financial resilience amidst revenue challenges.Income Statement
World Kinect's income statement reveals moderate profitability and growth challenges. The TTM gross profit margin stands at approximately 2.47%, indicating a tight margin typical of the refining industry. The TTM net profit margin is a low 0.05%, reflecting constrained profitability. Revenue growth has been volatile; there was a significant decline from 2022 to 2023, with a slight recovery in TTM 2025. EBIT and EBITDA margins illustrate minimal operational efficiency due to industry pressures and high costs.65
Positive
Balance Sheet
The balance sheet shows a stable financial position with a favorable equity ratio of approximately 29.16% in TTM 2025, indicating a solid equity base. The debt-to-equity ratio is 0.46, signifying manageable leverage. However, there has been a slight increase in total debt over the years. The return on equity is low at 0.98% in TTM 2025, suggesting limited returns to shareholders. Overall, the balance sheet reflects stability with room for improved returns.72
Positive
Cash Flow
Cash flow analysis highlights a robust operating cash flow to net income ratio of 16.73 in TTM 2025, indicating strong cash generation relative to net earnings. The free cash flow to net income ratio is 12.99, showing efficient cash flow management. Free cash flow growth has been inconsistent, with a notable increase in TTM 2025 compared to previous periods, driven primarily by improved operating cash flow. Despite fluctuations, cash flow stability remains a strength.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 40.67B | 42.17B | 47.71B | 59.04B | 31.34B | 20.36B | Gross Profit |
| 1.00B | 1.03B | 1.06B | 1.09B | 788.20M | 851.80M | EBIT |
| 140.80M | 210.60M | 198.00M | 273.20M | 142.60M | 137.90M | EBITDA |
| -188.70M | 210.60M | 306.70M | 366.10M | 226.80M | 295.60M | Net Income Common Stockholders |
| 18.90M | 67.40M | 52.90M | 114.10M | 73.70M | 109.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 456.40M | 382.90M | 304.30M | 298.40M | 652.20M | 658.80M | Total Assets |
| 6.59B | 6.73B | 7.38B | 8.16B | 5.94B | 4.50B | Total Debt |
| 879.10M | 880.80M | 887.90M | 845.70M | 508.70M | 524.70M | Net Debt |
| 422.70M | 497.90M | 583.60M | 547.30M | -143.50M | -134.10M | Total Liabilities |
| 4.66B | 4.78B | 5.43B | 6.17B | 4.03B | 2.59B | Stockholders Equity |
| 1.92B | 1.95B | 1.94B | 1.98B | 1.91B | 1.91B |
| Cash Flow | Free Cash Flow | ||||
| 245.80M | 191.70M | 183.70M | 59.90M | 134.00M | 552.80M | Operating Cash Flow |
| 316.00M | 259.90M | 271.30M | 138.50M | 173.20M | 604.10M | Investing Cash Flow |
| 75.60M | 64.50M | -101.10M | -724.90M | -58.30M | 72.80M | Financing Cash Flow |
| -198.70M | -230.60M | -152.40M | 237.30M | -113.60M | -213.00M |
World Kinect Technical Analysis
Negative
24.14
Price Trends
27.05
Negative
27.45
Negative
27.69
Negative
Market Momentum
-0.99
Negative
40.30
Neutral
78.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKC, the sentiment is Negative. The current price of 24.14 is below the 20-day moving average (MA) of 25.00, below the 50-day MA of 27.05, and below the 200-day MA of 27.69, indicating a bearish trend. The MACD of -0.99 indicates Negative momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKC.
World Kinect Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $781.57M | 3.02 | -2.64% | ― | -3.13% | -105.02% | |
59 Neutral | $1.37B | 107.38 | 0.98% | 2.82% | -11.87% | -74.55% | |
55 Neutral | $7.10B | 3.56 | -6.61% | 5.99% | -0.03% | -51.71% | |
54 Neutral | $900.11M | 46.04 | 666.62% | 8.88% | -6.57% | -50.55% | |
50 Neutral | $811.06M | ― | -108.21% | 7.74% | -28.68% | -4373.94% | |
48 Neutral | $1.85B | 264.51 | 0.90% | 10.86% | -17.69% | -99.09% | |
48 Neutral | $1.89B | ― | -8.87% | 6.44% | -13.59% | -127.47% |
* Energy Sector Average
Performance Comparison
WKC
World Kinect
24.14
0.96
4.14%
CVI
CVR Energy
18.41
-13.53
-42.36%
DK
Delek US Holdings
13.11
-14.81
-53.04%
PBF
PBF Energy
16.30
-39.65
-70.87%
CAPL
Crossamerica Partners
23.65
2.52
11.93%
PARR
Par Pacific Holdings
14.38
-18.05
-55.66%
World Kinect Earnings Call Summary
Earnings Call Date: Apr 24, 2025 | % Change Since: -1.83% | Next Earnings Date: Jul 24, 2025
Earnings Call Sentiment Neutral
The call highlighted strong performance in the aviation segment and successful cost reduction initiatives, but also noted significant challenges in the land and marine segments. Divestitures were positioned as strategic for long-term focus and profitability, despite associated losses. Cash flow generation was robust, bolstering financial resilience.Highlights
Aviation Segment Performance
The aviation segment showed strong year-over-year results with a 2% increase in volume and a 7% increase in gross profit, driven by increased profit contribution from airport operations and general aviation.
Successful Divestitures
World Kinect Corporation completed the divestments of its underperforming Brazilian and UK land businesses, which is expected to enhance focus on North American operations and improve profitability.
Cost Reduction Initiatives
The company implemented restructuring activities resulting in a $15 million charge aimed at reducing headcount, expected to result in $30 million of annualized cost savings.
Strong Cash Flow Generation
The company generated $114 million in operating cash flow and $99 million in free cash flow during the first quarter, demonstrating strong cash flow performance.
Lowlights
Decline in Land Segment
The land segment experienced a 6% decrease in volumes and a 19% decline in gross profit due to economic headwinds and industry trends affecting the North American fuel business.
Marine Segment Challenges
Marine volumes were down 14% year over year, with a 26% decline in gross profit due to lower bunker fuel prices and reduced volatility compared to the previous year.
Impacts of UK and Brazil Sales
The sale of the UK land business resulted in a $110 million one-time non-cash pretax charge, including a $45 million asset impairment recorded in the first quarter and an expected $65 million in the second.
Company Guidance
During the first quarter of 2025, World Kinect Corporation provided detailed guidance on their financial performance and strategic initiatives. The company reported a consolidated volume of 4.2 billion gallons, a 5% decrease year-over-year, with a corresponding 9% decline in gross profit to $230 million. The aviation segment showed resilience, with a 2% increase in volume to 1.7 billion gallons and a 7% rise in gross profit to $116 million, despite divestitures. The land segment faced a 6% volume decline and a 19% drop in gross profit to $79 million, influenced by broader economic conditions and strategic divestments, including the sale of the UK land business. The marine segment experienced a 14% decrease in volume and a 26% drop in gross profit, affected by lower bunker fuel prices. The company anticipates second-quarter gross profit between $235 million and $244 million and aims to improve operating margins toward a 30% target through cost reductions and streamlining efforts. Non-GAAP adjustments totaled $60 million, primarily due to restructuring and divestiture activities, with a $110 million non-cash pretax charge related to the UK sale. Despite challenges, World Kinect remains optimistic about leveraging its diversified portfolio and geographic reach to achieve strategic growth goals.World Kinect Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
World Kinect Appoints Jeffrey Kottkamp to Board
Positive
Apr 25, 2025
On April 23, 2025, World Kinect Corporation announced the appointment of Jeffrey M. Kottkamp to its Board of Directors. With a distinguished 40-year career at Deloitte & Touche USA LLP, Kottkamp brings extensive expertise in audit and financial services, which is expected to enhance the company’s strategic capabilities. His appointment is anticipated to strengthen World Kinect’s industry positioning by leveraging his accounting and regulatory knowledge, benefiting stakeholders through improved governance and oversight.
Spark’s Take on WKC Stock
According to Spark, TipRanks’ AI Analyst, WKC is a Neutral.
World Kinect’s overall stock score reflects a challenging environment with mixed financial performance. Key strengths include a stable balance sheet and strategic initiatives to improve cash flow and shareholder returns. However, declining revenues, bearish technical indicators, and valuation concerns weigh on the score. Efforts to enhance operational efficiency and focus on profitable segments could improve future prospects.
To see Spark’s full report on WKC stock, click here.
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.