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World Kinect (WKC)
NYSE:WKC

World Kinect (WKC) AI Stock Analysis

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World Kinect

(NYSE:WKC)

Rating:64Neutral
Price Target:
$29.00
▲(3.61%Upside)
World Kinect's overall score reflects stable financials and strategic leadership changes, countered by valuation concerns and segment challenges. Technical indicators and high P/E ratio weigh negatively, while strong cash flows and strategic initiatives provide optimism for future improvements.
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)

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 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: 13.83%|
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.
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 exhibits stable financial health with solid equity and effective cash flow management, though margins and revenue growth face pressure typical of the oil and gas refining industry.
Income Statement
65
Positive
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.
Balance Sheet
72
Positive
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.
Cash Flow
70
Positive
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
40.67B42.17B47.71B59.04B31.34B20.36B
Gross Profit
1.00B1.03B1.06B1.09B788.20M851.80M
EBIT
140.80M210.60M198.00M273.20M142.60M137.90M
EBITDA
-155.10M332.40M306.70M366.10M226.80M295.60M
Net Income Common Stockholders
18.90M67.40M52.90M114.10M73.70M109.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
456.40M382.90M304.30M298.40M652.20M658.80M
Total Assets
6.59B6.73B7.38B8.16B5.94B4.50B
Total Debt
879.10M880.80M887.90M845.70M508.70M524.70M
Net Debt
422.70M497.90M583.60M547.30M-143.50M-134.10M
Total Liabilities
4.66B4.78B5.43B6.17B4.03B2.59B
Stockholders Equity
1.92B1.95B1.94B1.98B1.91B1.91B
Cash FlowFree Cash Flow
245.80M191.70M183.70M59.90M134.00M552.80M
Operating Cash Flow
316.00M259.90M271.30M138.50M173.20M604.10M
Investing Cash Flow
75.60M64.50M-101.10M-724.90M-58.30M72.80M
Financing Cash Flow
-198.70M-230.60M-152.40M237.30M-113.60M-213.00M

World Kinect Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.99
Price Trends
50DMA
26.16
Positive
100DMA
27.26
Positive
200DMA
27.81
Positive
Market Momentum
MACD
0.45
Positive
RSI
57.83
Neutral
STOCH
76.52
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 27.99 is above the 20-day moving average (MA) of 27.74, above the 50-day MA of 26.16, and above the 200-day MA of 27.81, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 57.83 is Neutral, neither overbought nor oversold. The STOCH value of 76.52 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$1.26B3.02-4.95%-9.25%-113.66%
WKWKC
64
Neutral
$1.58B122.230.98%2.43%-11.91%-74.55%
58
Neutral
$7.56B3.50-4.45%10.15%0.79%-49.51%
54
Neutral
$834.72M27.64666.62%9.58%-6.57%-50.55%
CVCVI
51
Neutral
$2.71B268.82-27.14%16.77%-16.21%-130.18%
DKDK
51
Neutral
$1.24B-151.69%5.00%-29.23%-931.43%
PBPBF
48
Neutral
$2.45B-18.01%5.19%-16.30%-160.78%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WKC
World Kinect
27.99
2.79
11.07%
CVI
CVR Energy
26.95
0.42
1.58%
DK
Delek US Holdings
20.42
-2.17
-9.61%
PBF
PBF Energy
21.19
-21.06
-49.85%
CAPL
Crossamerica Partners
21.91
3.59
19.60%
PARR
Par Pacific Holdings
24.49
-0.38
-1.53%

World Kinect Corporate Events

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.

The most recent analyst rating on (WKC) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on World Kinect stock, see the WKC Stock Forecast page.

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
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.