World Kinect Corp (WKC) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

World Kinect's EV/EBITDA of 52.1 is above its 5-year median of 7.0.

P/B below the industry

World Kinect's price-to-book of 1.40 is below the Wholesale Trade-non-durable Goods median of 1.69.

Trading below fair value

The share price of $35.13 is below our fair value estimate of $38.97.

Margin of safety under 20%

The price is 9.9% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -14.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 21.1% over the last twelve months; the Wholesale Trade-non-durable Goods median is 11.1%.

Guidance raised

World Kinect raised its full year 2026 Adjusted EPS outlook on Jul 23, 2026.

Gross margin slipping

Gross margin was 2.5% over the last twelve months, against 2.6% a year earlier.

Return on equity under 15%

Return on equity was -11.5% over the last twelve months and averaged -4.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -1.9%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

World Kinect's return on equity of -11.5% is below the Wholesale Trade-non-durable Goods median of -6.0%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -0.4% over the last twelve months, against a 5-year average of -0.2%.

Net margin below the industry

World Kinect's net margin of -0.4% is below the Wholesale Trade-non-durable Goods median of -0.1%.

High debt

Debt is 54.2% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 27.5% five years ago to 54.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 20.4% of total debt.

Interest not well covered

Operating income covers interest expense -0.4 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.04 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.93; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

World Kinect paid dividends worth 2.4% of the share price over the last twelve months.

Yield below Treasuries

The 2.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; World Kinect yields 2.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 53.2% of free cash flow.