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World Kinect Corporation (WKC)
:WKC
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World Kinect
(NYSE:WKC)
Rating:64Neutral
Price Target:
$29.00
▲(5.19%Upside)
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. SPDR S&P 500 ETF (SPY)
Market Cap
$1.56B
Dividend Yield2.47%
Average Volume (3M)697.06K
Price to Earnings (P/E)120.2
Beta (1Y)0.94
Revenue Growth-11.91%
EPS Growth-74.55%
CountryUS
Employees4,745
SectorEnergy
Sector Strength47
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)0.48
Shares Outstanding56,627,254
10 Day Avg. Volume506,847
30 Day Avg. Volume697,056
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.76
Price to Sales (P/S)0.00
P/FCF Ratio5.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.00Price Target Upside-2.07% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
World Kinect Business Overview & Revenue Model
Company DescriptionWorld Kinect (WKC) is a global energy management and logistics company that provides comprehensive energy solutions and services to a diverse range of sectors, including transportation, industrial, and retail. The company offers products and services such as fuel supply, energy procurement, price risk management, and sustainability solutions, helping clients optimize energy consumption and reduce costs.
How the Company Makes MoneyWorld Kinect makes money primarily through the sale and distribution of energy products, including fuel and natural gas, to a wide array of industries. The company generates revenue by facilitating energy procurement and offering price risk management services, allowing clients to hedge against price fluctuations. Additionally, World Kinect earns income through its logistics services, including fuel transportation and storage. Strategic partnerships with energy producers and logistics providers further enhance their service offerings, enabling them to deliver comprehensive energy solutions to their customers.
World Kinect Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 12.12%|
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.Q1-2025 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview
Summary
World Kinect shows stable financial health with moderate profitability challenges. The income statement reflects industry pressures, with tight margins and volatile revenue growth. The balance sheet is stable with a solid equity base and manageable leverage, but low returns on equity. Strong cash flows highlight efficient cash management despite 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 |
| -155.10M | 332.40M | 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
Positive
27.57
Price Trends
26.22
Positive
27.23
Positive
27.78
Negative
Market Momentum
0.45
Positive
57.89
Neutral
61.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKC, the sentiment is Positive. The current price of 27.57 is above the 20-day moving average (MA) of 27.28, above the 50-day MA of 26.22, and below the 200-day MA of 27.78, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 61.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WKC.
World Kinect Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.56B | 120.22 | 0.98% | 2.47% | -11.91% | -74.55% | |
63 Neutral | $1.13B | 3.02 | -4.95% | ― | -9.25% | -113.66% | |
57 Neutral | $7.14B | 3.01 | -3.46% | 5.69% | 0.76% | -49.20% | |
55 Neutral | $2.14B | ― | -18.01% | 5.81% | -16.30% | -160.78% | |
54 Neutral | $824.81M | 27.31 | 666.62% | 9.70% | -6.57% | -50.55% | |
51 Neutral | $1.14B | ― | -151.69% | 5.41% | -29.23% | -931.43% | |
46 Neutral | $2.34B | 268.82 | -27.14% | 8.60% | -16.21% | -130.18% |
* Energy Sector Average
Performance Comparison
WKC
World Kinect
27.57
1.72
6.65%
CVI
CVR Energy
23.41
-2.85
-10.85%
DK
Delek US Holdings
19.30
-4.68
-19.52%
PBF
PBF Energy
19.54
-26.20
-57.28%
CAPL
Crossamerica Partners
21.83
3.38
18.32%
PARR
Par Pacific Holdings
21.85
-3.13
-12.53%
World Kinect Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
World Kinect Promotes Ira M. Birns to President
Positive
Apr 29, 2025
On April 25, 2025, World Kinect Corporation announced the promotion of Ira M. Birns to President while retaining his role as Chief Financial Officer, and John P. Rau to Chief Operating Officer. These leadership changes are expected to enhance the company’s operations in the global energy distribution and solutions sector, with both executives continuing to report to Chairman and CEO Michael Kasbar. The appointments reflect the company’s strategic focus on leveraging experienced leadership to navigate the evolving energy market, potentially impacting stakeholders positively by strengthening the company’s industry positioning.
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.
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.