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World Kinect (WKC)
NYSE:WKC
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World Kinect
(NYSE:WKC)
Rating:53Neutral
Price Target:
$28.00
▲(10.37% Upside)
Positive Factors
Aviation Segment Growth
The growth in the aviation segment indicates strong market demand and operational efficiency, supporting long-term revenue stability.
Strategic Acquisition
The acquisition is expected to be accretive to EPS and generate cost synergies, enhancing market position and operational efficiency.
Increased Shareholder Returns
Increased shareholder returns reflect strong cash flow generation and management's confidence in long-term business prospects.
Negative Factors
Declining Revenue
Declining revenue suggests challenges in maintaining market share and competitiveness, impacting long-term growth potential.
Noncash Intangible Asset Impairment
Significant impairment indicates potential overvaluation of assets and challenges in the land segment, affecting future profitability.
Cash Flow Decline
Declining cash flow limits the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term sustainability.
World Kinect (WKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend Yield2.8%
Average Volume (3M)729.17K
Price to Earnings (P/E)119.1
Beta (1Y)1.02
Revenue Growth-16.09%
EPS Growth-436.27%
CountryUS
Employees4,745
SectorEnergy
Sector Strength55
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)0.59
Shares Outstanding55,544,560
10 Day Avg. Volume916,316
30 Day Avg. Volume729,173
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit2.03
Enterprise Value/Ebitda-7.83
Forecast
1Y Price Target
$29.50Price Target Upside16.28% Upside
Rating ConsensusHold
Number of Analyst Covering2
World Kinect Business Overview & Revenue Model
Company DescriptionWorld Kinect (WKC) is a leading global provider of energy solutions, specializing in the supply and management of fuels, energy logistics, and related services. Operating across various sectors including commercial, industrial, and governmental markets, WKC delivers innovative energy products such as natural gas, heating oil, propane, and electricity. The company is committed to sustainability and offers customers tailored solutions that enhance efficiency and reduce environmental impact.
How the Company Makes MoneyWorld Kinect generates revenue primarily through the sale of energy products and services, including fuel supply contracts, energy management solutions, and logistics services. Key revenue streams include direct sales of natural gas, propane, and heating oil, as well as long-term contracts with businesses and government entities for energy procurement. Additionally, WKC earns revenue from value-added services like energy consulting and sustainability solutions. Significant partnerships with energy producers and logistics providers enhance WKC's market reach and operational efficiency, contributing to its earnings. The company's focus on sustainable practices also positions it favorably in a market increasingly driven by environmental considerations.
World Kinect Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with notable growth in the aviation segment and increased shareholder returns countered by significant challenges in the land and marine segments and a substantial noncash impairment charge.Q2-2025 Updates
Positive Updates
Aviation Segment Growth
Aviation gross profit increased by 8% year-over-year to $138 million, driven by strong performance at airport locations in Europe and business and general aviation activities. Aviation volume was up 2% year-over-year.
Increased Dividend
World Kinect increased its quarterly dividend, reflecting confidence in the business and strong cash flow generation capabilities.
Cash Flow and Shareholder Returns
Generated $28 million in operating cash flow and $13 million in free cash flow in the second quarter, returning approximately $64 million to shareholders through share repurchases and dividends.
Negative Updates
Land Segment Challenges
Land volumes declined 7% year-over-year, with gross profit down 17% due to the sale of U.K. and Brazil land businesses and strategic exit of certain North American operations.
Noncash Intangible Asset Impairment
Recorded a $367 million noncash intangible asset impairment in the land segment, including $359 million related to goodwill, due to reassessment of remaining business activities and revisions to long-term forecasts.
Marine Segment Decline
Marine volumes declined 7% year-over-year, with a 26% decrease in gross profit, primarily due to an unfavorable transaction tax settlement and weaker performance at certain U.S. inventory locations.
Consolidated Gross Profit Decline
Consolidated gross profit declined 5% year-over-year to $232 million, below the guidance range provided last quarter.
Company Guidance
During the World Kinect Corporation's Second Quarter 2025 earnings call, the company provided guidance on several key metrics. They expect consolidated gross profit for the third quarter to be between $252 million and $262 million. The aviation segment showed promise with a year-over-year gross profit increase of 8% to $138 million, driven by strong performance in Europe and increased government activity. However, the land segment faced challenges, with a year-over-year gross profit decline of 17% to $67 million, primarily due to divestitures and market pressures. The marine segment recorded a 26% decrease in gross profit due to an unfavorable tax settlement. Despite these challenges, the company remains committed to strategic investments, having returned approximately $64 million to shareholders through buybacks and dividends in the first half of the year. Overall, World Kinect is focusing on refining its portfolio to enhance operational efficiency and drive long-term shareholder value.World Kinect Financial Statement Overview
Summary
World Kinect faces a challenging financial environment, with declining revenues and profitability impacting its financial health. The income statement shows significant weaknesses, with negative net income and EBIT margin. The balance sheet reflects a moderate position with manageable leverage, but negative trends in income and cash flow metrics indicate potential risks.Income Statement
World Kinect's income statement shows significant weaknesses, with a negative net income and EBIT margin in the TTM period. Revenue has decreased from previous years, with a sharp decline of 8.1% from 2024 to TTM. The gross profit margin is relatively low at 2.55%, indicating potential inefficiencies in cost management or declining market conditions.45
Neutral
Balance Sheet
The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.51, suggesting manageable leverage. However, the return on equity is negative due to net losses, which is a concern for long-term sustainability. The equity ratio stands at 26.4%, providing a stable capital structure despite recent challenges.60
Neutral
Cash Flow
Cash flow analysis highlights a decline in operating cash flow compared to previous years, with a drop of 13.6% from 2024. The free cash flow to net income ratio is negative, reflecting insufficient cash generation relative to reported losses. While the company maintains positive free cash flow, the growth rate has declined substantially.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.75B | 42.17B | 47.71B | 59.04B | 31.34B | 20.36B |
| Gross Profit | 989.80M | 1.03B | 1.06B | 1.09B | 788.20M | 851.80M |
| EBITDA | -256.60M | 332.40M | 306.70M | 366.10M | 226.80M | 295.60M |
| Net Income | -428.70M | 67.40M | 52.90M | 114.10M | 73.70M | 109.60M |
Balance Sheet | ||||||
| Total Assets | 6.05B | 6.73B | 7.38B | 8.16B | 5.94B | 4.50B |
| Cash, Cash Equivalents and Short-Term Investments | 403.20M | 382.90M | 304.30M | 298.40M | 652.20M | 658.80M |
| Total Debt | 818.40M | 880.80M | 1.08B | 1.05B | 508.70M | 682.20M |
| Total Liabilities | 4.45B | 4.78B | 5.43B | 6.17B | 4.03B | 2.59B |
| Stockholders Equity | 1.60B | 1.95B | 1.94B | 1.98B | 1.91B | 1.91B |
Cash Flow | ||||||
| Free Cash Flow | 158.30M | 191.70M | 183.70M | 59.90M | 134.00M | 552.80M |
| Operating Cash Flow | 224.50M | 259.90M | 271.30M | 138.50M | 173.20M | 604.10M |
| Investing Cash Flow | -104.10M | 64.50M | -101.10M | -724.90M | -58.30M | 72.80M |
| Financing Cash Flow | -246.90M | -230.60M | -152.40M | 237.30M | -113.60M | -213.00M |
World Kinect Technical Analysis
Negative
25.37
Price Trends
27.03
Negative
27.00
Negative
27.22
Negative
Market Momentum
-0.22
Positive
38.78
Neutral
13.74
Positive
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 25.37 is below the 20-day moving average (MA) of 26.30, below the 50-day MA of 27.03, and below the 200-day MA of 27.22, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 38.78 is Neutral, neither overbought nor oversold. The STOCH value of 13.74 is Positive, 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.18B | 7.59 | 4.09% | 5.21% | 3.87% | -62.32% | |
56 Neutral | $3.13B | 268.82 | -50.65% | 8.86% | -15.98% | -160.88% | |
54 Neutral | $774.18M | 18.39 | 666.62% | 10.34% | -10.51% | 101.44% | |
53 Neutral | $1.41B | 119.08 | -23.62% | 2.80% | -16.09% | -436.27% | |
52 Neutral | $1.67B | 3.02 | -1.59% | ― | -13.09% | -103.24% | |
51 Neutral | $1.68B | ― | -200.75% | 3.66% | -29.94% | -723.41% | |
51 Neutral | $3.18B | ― | -17.30% | 4.01% | -18.73% | -236.79% |
* Energy Sector Average
Performance Comparison
WKC
World Kinect
25.37
-3.23
-11.29%
CVI
CVR Energy
31.16
8.21
35.77%
DK
Delek US Holdings
27.90
9.57
52.21%
PBF
PBF Energy
27.45
-3.61
-11.62%
CAPL
Crossamerica Partners
20.31
1.09
5.67%
PARR
Par Pacific Holdings
32.82
13.87
73.19%
World Kinect Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
World Kinect Appoints Gregory Piper to Board
Positive
Jul 23, 2025
On July 17, 2025, World Kinect Corporation appointed Gregory F. Piper to its Board of Directors, where he will also serve on the Compensation Committee. Mr. Piper brings over 35 years of experience in the global energy, commodity, and agriculture sectors, which is expected to be a strategic asset for the company. His extensive background includes leadership roles at CP Energy and Gavilon Energy, where he managed significant strategic initiatives and transactions. This appointment is anticipated to strengthen World Kinect’s industry positioning and operational expertise.
Executive/Board ChangesShareholder Meetings
World Kinect Approves 2025 Omnibus Plan at Shareholder Meeting
Neutral
Jun 11, 2025
On June 5, 2025, World Kinect Corporation held its Annual Meeting of Shareholders, where the 2025 Omnibus Plan was approved. This plan aims to attract and retain key personnel by offering equity-based and cash-based incentives. The plan replaces previous plans and allows for performance-based awards, with a total of 1,850,000 shares available for grants. Additionally, the shareholders elected directors for the upcoming term, approved executive compensation, and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025.
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.