Kirby Corporation transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. The company was founded in 1921 and is based in Houston, Texas.
KEX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Kirby Corp. To summarize, we found that Kirby Corp ranked in the 26th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for KEX, they are:
Kirby Corp's effective tax rate, as measured by taxes paid relative to net income, is at 35 -- greater than 92.21% of US stocks with positive free cash flow.
Kirby Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.7. This coverage rate is greater than that of merely 11.63% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 12. This value is greater than 85.02% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Kirby Corp? See VRSK, BDC, CCRN, CNI, and HI.
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Barge operator Kirby (KEX) often trades at a robust premium during the good times; while the company’s historically strong operating margins and strong market share would support that to some extent, I’ve often thought that the valuation was just too rich in recent years – and the stock’s performance relative...