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:
Below please find a table outlining a discounted cash flow forecast for KEX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Kirby Corp ranked in the 64th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 137.5%. 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 34 -- greater than 90.74% 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 -4.69. This coverage rate is greater than that of only 12.34% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 13. This value is greater than 83.41% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
JBHT, CATM, AAN, UUU, and FC can be thought of as valuation peers to KEX, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
It’s been just over two months since I put out my bullish article on Kirby Corporation (KEX). In that time, the shares have fallen nearly 20% against a gain of 8% for the S&P 500. The company has released financials since I last looked in on the name, which deserves...
Patrick Doyle on Seeking Alpha | September 10, 2020
Kirby (KEX) has been through tough times before - the economically-sensitive nature of the petrochemical products it transports basically guarantees that - but this sudden downturn is being exacerbated by the company's decisions in past years to diversify into engines and industrial parts, particularly in the oil/gas space. While the...
Stephen Simpson, CFA on Seeking Alpha | September 3, 2020
Shares of Kirby (NYSE:KEX) were flat in pre-market trading after the company reported Q2 results.Quarterly Results Earnings per share were down 46.84% year over year to $0.42, which missed the estimate of $0.45.Revenue of $541,159,000 decreased by 29.81% from the same period last year, which missed the estimate of $589,360,000.Outlook Earnings guidance hasn't been issued by the company for now.Kirby hasn't issued any revenue guidance for the time being.Details Of The Call Date: Jul 30, 2020View more earnings on KEXTime: 08:30 AMET Webcast URL: https://edge.media-server.com/mmc/p/bgbqzgn4Technicals 52-week high: $92.30Company's 52-week low was at $32.76Price action over last quarter: down 4.45%Company Description In its legacy marine transportation segment (46% of first-half ...