Stock on Focus: Kirby Corp (KEX)

Company Profile:

Kirby Corporation is the domestic tank barge operator, transporting bulk liquid products. The Company, through its subsidiaries, operates in two segments: Marine Transportation and Diesel Engine Services. The Marine Transportation segment is a provider of marine transportation services, operating tank barges and towing vessels transporting bulk liquid products. The Diesel Engine Services segment, sells replacement parts, provides service mechanics to overhaul and repair medium-speed and high-speed diesel engines, transmissions, reduction gears, pumps and compression products, maintains facilities to rebuild component parts or entire medium-speed and high-speed diesel engines, transmissions and entire reduction gears, and manufactures and remanufactures oilfield service equipment, including pressure pumping units. The company was formerly known as Kirby Exploration Company, Inc. and changed its name to Kirby Corporation in 1990. Kirby Corporation was founded in 1921 and is headquartered in Houston, Texas.

Recent News:

On Oct.28, 2015, Kirby Corporation announced net earnings attributable to Kirby for the third quarter ended September 30, 2015 of $56.8 million, or $1.04 per share, compared with $76.7 million, or $1.34 per share, for the 2014 third quarter.

Kirby will present at the Stephens Fall Investment Conference on Tuesday, November 10, 2015. A live audio webcast of the presentation will be available to the public and a replay will be available after the presentation by visiting Kirby’s website at http://www.kirbycorp.com.

For the second quarter ended June 30, 2015, Kirby Corporation earned $58.1 million, or $1.04 per share, compared with $75.0 million, or $1.31 per share, for the 2014 second quarter.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

KEX’s strengths can be seen in its better growth, better profitability and strong Solvency. Its revenue have increased over several years. Technical indicators signal the bullish signs, as %K line is on top fo %D line and RSI is in bull territory, which stands at 50.32. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Kirby Corp (KEX) a Strong BUY.