NYSE:KEX

Stock Analysis Report

Executive Summary

Kirby Corporation operates domestic tank barges in the United States.

Rewards

Trading at 24.6% below its fair value

Earnings are forecast to grow 23.32% per year

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results

Profit margins (4%) are lower than last year (11.2%)



Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Marathon Petroleum

NYSE:MPC

Share Price & News

How has Kirby's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KEX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

KEX

0.5%

US Shipping

0.7%

US Market


1 Year Return

18.9%

KEX

16.5%

US Shipping

21.1%

US Market

Return vs Industry: KEX exceeded the US Shipping industry which returned 16.5% over the past year.

Return vs Market: KEX underperformed the US Market which returned 21.1% over the past year.


Shareholder returns

KEXIndustryMarket
7 Day-1.8%0.5%0.7%
30 Day-1.0%5.7%2.3%
90 Day-1.0%2.9%5.0%
1 Year18.9%18.9%19.1%16.5%23.7%21.1%
3 Year24.0%24.0%19.2%12.2%47.0%37.4%
5 Year1.5%1.5%-73.3%-74.5%65.7%47.5%

Price Volatility Vs. Market

How volatile is Kirby's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kirby undervalued compared to its fair value and its price relative to the market?

24.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KEX ($82.1) is trading below our estimate of fair value ($108.89)

Significantly Below Fair Value: KEX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KEX is poor value based on its PE Ratio (42.7x) compared to the Shipping industry average (19.3x).

PE vs Market: KEX is poor value based on its PE Ratio (42.7x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: KEX is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: KEX is overvalued based on its PB Ratio (1.5x) compared to the US Shipping industry average (0.5x).


Next Steps

Future Growth

How is Kirby forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEX's forecast earnings growth (23.3% per year) is above the savings rate (1.7%).

Earnings vs Market: KEX's earnings (23.3% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KEX's revenue (3.2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: KEX's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KEX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Kirby performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEX has a large one-off loss of $83.9M impacting its September 30 2019 financial results.

Growing Profit Margin: KEX's current net profit margins (4%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: KEX's earnings have declined by -10.8% per year over the past 5 years.

Accelerating Growth: KEX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KEX had negative earnings growth (-65.4%) over the past year, making it difficult to compare to the Shipping industry average (-48.2%).


Return on Equity

High ROE: KEX's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kirby's financial position?


Financial Position Analysis

Short Term Liabilities: KEX's short term assets ($958.5M) exceed its short term liabilities ($517.0M).

Long Term Liabilities: KEX's short term assets ($958.5M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: KEX's debt to equity ratio (42.5%) is considered high.

Reducing Debt: KEX's debt to equity ratio has increased from 28.8% to 42.5% over the past 5 years.

Debt Coverage: KEX's debt is well covered by operating cash flow (32.2%).

Interest Coverage: KEX's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: KEX has a high level of physical assets or inventory.

Debt Coverage by Assets: KEX's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Kirby's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate KEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KEX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KEX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KEX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KEX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Kirby's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Dick Alario (64yo)

0.08yrs

Tenure

US$321,054

Compensation

Mr. Richard J. Alario, also known as Dick, has been an Independent Director of NOW Inc. since May 30, 2014 and has been its interim CEO since November 2019. He has been Executive Chairman of Fluid Delivery ...


Management Age and Tenure

2.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: KEX's management team is considered experienced (2 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: KEX's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: KEX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$55,25002 Dec 19
Kim Clarke
EntityIndividual
Shares650
Max PriceUS$85.00
SellUS$60,40419 Nov 19
Christian O'Neil
EntityIndividual
Role
Unit President
President of Kirby Inland Marine & Kirby Offshore Marine
Shares725
Max PriceUS$83.32
SellUS$1,653,42607 Nov 19
William Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$82.67
SellUS$2,535,63605 Nov 19
William Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$84.54
SellUS$5,24729 Aug 19
Eric Holcomb
EntityIndividual
Role
Head of Investor Relations
Vice President of Investor Relations
Shares70
Max PriceUS$74.96
SellUS$118,07401 Aug 19
Dorman Strahan
EntityIndividual
Shares1,500
Max PriceUS$78.72
SellUS$1,647,02011 Jun 19
William Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$82.35
SellUS$169,63807 May 19
Christian O'Neil
EntityIndividual
Role
Unit President
President of Kirby Inland Marine & Kirby Offshore Marine
Shares2,000
Max PriceUS$84.82
SellUS$42,00007 May 19
Ronald Dragg
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Assistant Secretary
Shares500
Max PriceUS$84.00
SellUS$260,69807 May 19
Dorman Strahan
EntityIndividual
Shares3,071
Max PriceUS$85.23
SellUS$419,21407 May 19
Monte Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,937
Max PriceUS$84.91
SellUS$178,85908 Mar 19
Richard Stewart
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$71.54
SellUS$186,66805 Mar 19
Richard Stewart
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$74.67
SellUS$268,03919 Feb 19
Joseph Reniers
EntityIndividual
Role
Unit President
President of Kirby Distribution & Services
Shares3,463
Max PriceUS$77.40

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bill Harvey (61yo)

    Executive VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$1.47m
  • Dick Alario (64yo)

    Interim CEO & Independent Director

    • Tenure: 0.08yrs
    • Compensation: US$321.05k
  • Ronald Dragg (55yo)

    VP, Controller & Assistant Secretary

    • Tenure: 0yrs
  • David Grzebinski (58yo)

    President & Director

    • Tenure: 5.9yrs
    • Compensation: US$5.05m
  • Amy Husted (50yo)

    VP & General Counsel

    • Tenure: 2.9yrs
    • Compensation: US$1.06m
  • Joseph Reniers (44yo)

    President of Kirby Distribution & Services

    • Tenure: 2.3yrs
    • Compensation: US$1.66m
  • Christian O'Neil (46yo)

    President of Kirby Inland Marine & Kirby Offshore Marine

    • Tenure: 1.9yrs
    • Compensation: US$1.61m
  • Scott Miller (40yo)

    VP & Chief Information Officer

    • Tenure: 0.9yrs
  • William Woodruff (58yo)

    Vice President of Public & Government Affairs

    • Tenure: 2.2yrs
  • Eric Holcomb (44yo)

    Vice President of Investor Relations

    • Tenure: 2yrs

Board Members

  • Dick Alario (64yo)

    Interim CEO & Independent Director

    • Tenure: 0.08yrs
    • Compensation: US$321.05k
  • Joe Pyne (71yo)

    Non-Executive Chairman

    • Tenure: 6.7yrs
    • Compensation: US$18.23m
  • C. Day (69yo)

    Independent Director

    • Tenure: 23.9yrs
    • Compensation: US$321.13k
  • Barry Davis (57yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$296.89k
  • Rick Stewart (70yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$440.13k
  • David Grzebinski (58yo)

    President & Director

    • Tenure: 5.9yrs
    • Compensation: US$5.05m
  • Monte Miller (75yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$291.05k
  • Tanya Beder (63yo)

    Director

    • Tenure: 0.2yrs
  • Bill Waterman (65yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$283.55k
  • Anne-Marie Ainsworth (63yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$283.55k

Company Information

Kirby Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kirby Corporation
  • Ticker: KEX
  • Exchange: NYSE
  • Founded: 1921
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: US$4.922b
  • Shares outstanding: 59.95m
  • Website: https://www.kirbycorp.com

Number of Employees


Location

  • Kirby Corporation
  • 55 Waugh Drive
  • Suite 1000
  • Houston
  • Texas
  • 77007
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEXNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1976
KIYDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1976

Biography

Kirby Corporation operates domestic tank barges in the United States. Its Marine Transportation segment provides marine transportation services and towing vessels transporting bulk liquid products, as well ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 23:53
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.