Intrinsic value of Kirby - KEX

Previous Close

$73.68

  Intrinsic Value

$8.11

stock screener

  Rating & Target

str. sell

-89%

Previous close

$73.68

 
Intrinsic value

$8.11

 
Up/down potential

-89%

 
Rating

str. sell

We calculate the intrinsic value of KEX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 4.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  3,543
  5,474
  8,186
  11,878
  16,758
  23,039
  30,925
  40,606
  52,250
  65,996
  81,952
  100,195
  120,768
  143,691
  168,955
  196,535
  226,391
  258,477
  292,738
  329,125
  367,589
  408,090
  450,597
  495,092
  541,567
  590,029
  640,498
  693,007
  747,605
  804,353
Variable operating expenses, $m
  2,984
  4,547
  6,742
  9,729
  13,679
  18,761
  25,143
  32,978
  42,401
  53,525
  66,321
  81,083
  97,733
  116,283
  136,728
  159,047
  183,209
  209,174
  236,901
  266,347
  297,474
  330,250
  364,649
  400,657
  438,267
  477,485
  518,327
  560,821
  605,005
  650,928
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,984
  4,547
  6,742
  9,729
  13,679
  18,761
  25,143
  32,978
  42,401
  53,525
  66,321
  81,083
  97,733
  116,283
  136,728
  159,047
  183,209
  209,174
  236,901
  266,347
  297,474
  330,250
  364,649
  400,657
  438,267
  477,485
  518,327
  560,821
  605,005
  650,928
Operating income, $m
  559
  927
  1,445
  2,149
  3,080
  4,278
  5,782
  7,629
  9,850
  12,472
  15,632
  19,111
  23,036
  27,408
  32,227
  37,488
  43,183
  49,303
  55,838
  62,778
  70,115
  77,840
  85,948
  94,435
  103,300
  112,544
  122,170
  132,186
  142,600
  153,424
EBITDA, $m
  961
  1,485
  2,220
  3,222
  4,545
  6,248
  8,387
  11,013
  14,171
  17,899
  22,227
  27,174
  32,754
  38,971
  45,823
  53,303
  61,401
  70,102
  79,395
  89,263
  99,695
  110,680
  122,208
  134,276
  146,881
  160,024
  173,712
  187,953
  202,761
  218,152
Interest expense (income), $m
  20
  54
  119
  214
  347
  528
  768
  1,076
  1,464
  1,939
  2,511
  3,187
  3,971
  4,867
  5,877
  7,003
  8,245
  9,599
  11,066
  12,642
  14,325
  16,113
  18,002
  19,992
  22,080
  24,266
  26,549
  28,930
  31,409
  33,989
  36,671
Earnings before tax, $m
  505
  809
  1,231
  1,802
  2,552
  3,510
  4,705
  6,165
  7,910
  9,960
  12,445
  15,141
  18,169
  21,530
  25,223
  29,243
  33,583
  38,236
  43,195
  48,453
  54,002
  59,838
  65,956
  72,355
  79,034
  85,995
  93,240
  100,777
  108,612
  116,754
Tax expense, $m
  136
  218
  332
  487
  689
  948
  1,270
  1,664
  2,136
  2,689
  3,360
  4,088
  4,906
  5,813
  6,810
  7,896
  9,067
  10,324
  11,663
  13,082
  14,581
  16,156
  17,808
  19,536
  21,339
  23,219
  25,175
  27,210
  29,325
  31,523
Net income, $m
  369
  590
  899
  1,315
  1,863
  2,562
  3,435
  4,500
  5,774
  7,271
  9,085
  11,053
  13,263
  15,717
  18,413
  21,347
  24,516
  27,913
  31,533
  35,370
  39,421
  43,681
  48,148
  52,819
  57,695
  62,776
  68,065
  73,567
  79,286
  85,230

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  8,202
  12,671
  18,950
  27,496
  38,792
  53,330
  71,585
  93,996
  120,950
  152,769
  189,705
  231,932
  279,556
  332,617
  391,098
  454,941
  524,054
  598,326
  677,635
  761,863
  850,900
  944,652
  1,043,049
  1,146,047
  1,253,628
  1,365,808
  1,482,634
  1,604,183
  1,730,567
  1,861,927
Adjusted assets (=assets-cash), $m
  8,202
  12,671
  18,950
  27,496
  38,792
  53,330
  71,585
  93,996
  120,950
  152,769
  189,705
  231,932
  279,556
  332,617
  391,098
  454,941
  524,054
  598,326
  677,635
  761,863
  850,900
  944,652
  1,043,049
  1,146,047
  1,253,628
  1,365,808
  1,482,634
  1,604,183
  1,730,567
  1,861,927
Revenue / Adjusted assets
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
  0.432
Average production assets, $m
  5,446
  8,414
  12,583
  18,257
  25,757
  35,411
  47,531
  62,412
  80,309
  101,436
  125,961
  153,999
  185,621
  220,852
  259,683
  302,074
  347,964
  397,279
  449,939
  505,865
  564,984
  627,234
  692,568
  760,957
  832,389
  906,875
  984,445
  1,065,152
  1,149,069
  1,236,290
Working capital, $m
  730
  1,128
  1,686
  2,447
  3,452
  4,746
  6,371
  8,365
  10,764
  13,595
  16,882
  20,640
  24,878
  29,600
  34,805
  40,486
  46,637
  53,246
  60,304
  67,800
  75,723
  84,066
  92,823
  101,989
  111,563
  121,546
  131,943
  142,759
  154,007
  165,697
Total debt, $m
  2,199
  3,956
  6,423
  9,782
  14,221
  19,935
  27,109
  35,916
  46,509
  59,014
  73,530
  90,125
  108,841
  129,694
  152,678
  177,768
  204,929
  234,118
  265,286
  298,388
  333,379
  370,224
  408,894
  449,372
  491,652
  535,738
  581,651
  629,420
  679,089
  730,713
Total liabilities, $m
  3,223
  4,980
  7,447
  10,806
  15,245
  20,959
  28,133
  36,940
  47,533
  60,038
  74,554
  91,149
  109,866
  130,718
  153,702
  178,792
  205,953
  235,142
  266,311
  299,412
  334,404
  371,248
  409,918
  450,396
  492,676
  536,762
  582,675
  630,444
  680,113
  731,737
Total equity, $m
  4,978
  7,692
  11,503
  16,690
  23,547
  32,372
  43,452
  57,055
  73,416
  92,731
  115,151
  140,783
  169,691
  201,899
  237,397
  276,149
  318,101
  363,184
  411,324
  462,451
  516,496
  573,404
  633,131
  695,650
  760,952
  829,045
  899,959
  973,739
  1,050,454
  1,130,190
Total liabilities and equity, $m
  8,201
  12,672
  18,950
  27,496
  38,792
  53,331
  71,585
  93,995
  120,949
  152,769
  189,705
  231,932
  279,557
  332,617
  391,099
  454,941
  524,054
  598,326
  677,635
  761,863
  850,900
  944,652
  1,043,049
  1,146,046
  1,253,628
  1,365,807
  1,482,634
  1,604,183
  1,730,567
  1,861,927
Debt-to-equity ratio
  0.440
  0.510
  0.560
  0.590
  0.600
  0.620
  0.620
  0.630
  0.630
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
Adjusted equity ratio
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607
  0.607

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  369
  590
  899
  1,315
  1,863
  2,562
  3,435
  4,500
  5,774
  7,271
  9,085
  11,053
  13,263
  15,717
  18,413
  21,347
  24,516
  27,913
  31,533
  35,370
  39,421
  43,681
  48,148
  52,819
  57,695
  62,776
  68,065
  73,567
  79,286
  85,230
Depreciation, amort., depletion, $m
  402
  557
  776
  1,073
  1,465
  1,971
  2,605
  3,384
  4,321
  5,428
  6,595
  8,063
  9,718
  11,563
  13,596
  15,815
  18,218
  20,800
  23,557
  26,485
  29,580
  32,839
  36,260
  39,841
  43,581
  47,480
  51,542
  55,767
  60,161
  64,727
Funds from operations, $m
  771
  1,148
  1,674
  2,388
  3,328
  4,533
  6,040
  7,885
  10,096
  12,698
  15,680
  19,116
  22,982
  27,280
  32,009
  37,163
  42,734
  48,712
  55,090
  61,856
  69,002
  76,521
  84,408
  92,660
  101,275
  110,256
  119,607
  129,334
  139,447
  149,957
Change in working capital, $m
  274
  398
  559
  760
  1,005
  1,294
  1,625
  1,994
  2,399
  2,832
  3,287
  3,758
  4,238
  4,722
  5,204
  5,682
  6,150
  6,610
  7,058
  7,496
  7,924
  8,343
  8,757
  9,166
  9,574
  9,983
  10,397
  10,817
  11,247
  11,690
Cash from operations, $m
  497
  750
  1,116
  1,628
  2,323
  3,239
  4,416
  5,890
  7,697
  9,867
  12,393
  15,358
  18,744
  22,558
  26,805
  31,481
  36,583
  42,103
  48,032
  54,360
  61,078
  68,178
  75,651
  83,494
  91,701
  100,273
  109,211
  118,517
  128,200
  138,267
Maintenance CAPEX, $m
  -178
  -285
  -441
  -659
  -956
  -1,349
  -1,854
  -2,489
  -3,268
  -4,205
  -5,311
  -6,595
  -8,063
  -9,718
  -11,563
  -13,596
  -15,815
  -18,218
  -20,800
  -23,557
  -26,485
  -29,580
  -32,839
  -36,260
  -39,841
  -43,581
  -47,480
  -51,542
  -55,767
  -60,161
New CAPEX, $m
  -2,042
  -2,968
  -4,169
  -5,674
  -7,501
  -9,653
  -12,121
  -14,880
  -17,897
  -21,128
  -24,525
  -28,038
  -31,622
  -35,231
  -38,831
  -42,391
  -45,890
  -49,315
  -52,660
  -55,926
  -59,119
  -62,250
  -65,334
  -68,388
  -71,432
  -74,486
  -77,570
  -80,707
  -83,917
  -87,221
Cash from investing activities, $m
  -2,220
  -3,253
  -4,610
  -6,333
  -8,457
  -11,002
  -13,975
  -17,369
  -21,165
  -25,333
  -29,836
  -34,633
  -39,685
  -44,949
  -50,394
  -55,987
  -61,705
  -67,533
  -73,460
  -79,483
  -85,604
  -91,830
  -98,173
  -104,648
  -111,273
  -118,067
  -125,050
  -132,249
  -139,684
  -147,382
Free cash flow, $m
  -1,723
  -2,503
  -3,494
  -4,705
  -6,134
  -7,763
  -9,559
  -11,479
  -13,467
  -15,466
  -17,443
  -19,276
  -20,941
  -22,391
  -23,589
  -24,505
  -25,122
  -25,430
  -25,428
  -25,123
  -24,526
  -23,653
  -22,522
  -21,155
  -19,571
  -17,793
  -15,840
  -13,731
  -11,484
  -9,114
Issuance/(repayment) of debt, $m
  1,207
  1,757
  2,468
  3,358
  4,440
  5,714
  7,174
  8,807
  10,593
  12,505
  14,516
  16,595
  18,716
  20,853
  22,983
  25,090
  27,161
  29,189
  31,169
  33,102
  34,991
  36,845
  38,670
  40,478
  42,279
  44,087
  45,912
  47,769
  49,669
  51,624
Issuance/(repurchase) of shares, $m
  1,499
  2,123
  2,912
  3,872
  4,994
  6,263
  7,646
  9,103
  10,587
  12,044
  13,335
  14,579
  15,645
  16,491
  17,085
  17,405
  17,436
  17,170
  16,608
  15,756
  14,624
  13,226
  11,579
  9,700
  7,607
  5,317
  2,848
  214
  0
  0
Cash from financing (excl. dividends), $m  
  2,706
  3,880
  5,380
  7,230
  9,434
  11,977
  14,820
  17,910
  21,180
  24,549
  27,851
  31,174
  34,361
  37,344
  40,068
  42,495
  44,597
  46,359
  47,777
  48,858
  49,615
  50,071
  50,249
  50,178
  49,886
  49,404
  48,760
  47,983
  49,669
  51,624
Total cash flow (excl. dividends), $m
  982
  1,376
  1,886
  2,525
  3,300
  4,213
  5,261
  6,432
  7,712
  9,083
  10,408
  11,899
  13,420
  14,952
  16,479
  17,990
  19,475
  20,929
  22,348
  23,734
  25,089
  26,418
  27,727
  29,023
  30,315
  31,611
  32,920
  34,251
  38,185
  42,510
Retained Cash Flow (-), $m
  -1,868
  -2,713
  -3,811
  -5,187
  -6,857
  -8,825
  -11,081
  -13,603
  -16,361
  -19,314
  -22,420
  -25,632
  -28,908
  -32,208
  -35,498
  -38,753
  -41,952
  -45,083
  -48,141
  -51,126
  -54,045
  -56,908
  -59,727
  -62,519
  -65,302
  -68,093
  -70,913
  -73,781
  -76,715
  -79,735
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -885
  -1,337
  -1,925
  -2,662
  -3,557
  -4,611
  -5,820
  -7,171
  -8,649
  -10,231
  -12,012
  -13,733
  -15,488
  -17,256
  -19,019
  -20,763
  -22,476
  -24,154
  -25,792
  -27,392
  -28,956
  -30,489
  -32,000
  -33,496
  -34,987
  -36,482
  -37,993
  -39,530
  -38,530
  -37,225
Discount rate, %
  4.90
  5.15
  5.40
  5.67
  5.96
  6.25
  6.57
  6.89
  7.24
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
PV of cash for distribution, $m
  -844
  -1,209
  -1,644
  -2,135
  -2,664
  -3,204
  -3,729
  -4,207
  -4,611
  -4,918
  -5,161
  -5,228
  -5,174
  -5,007
  -4,742
  -4,398
  -3,995
  -3,556
  -3,102
  -2,653
  -2,223
  -1,826
  -1,469
  -1,158
  -893
  -674
  -497
  -358
  -236
  -150
Current shareholders' claim on cash, %
  74.6
  57.4
  45.3
  36.6
  30.2
  25.5
  21.8
  19.0
  16.8
  15.1
  13.7
  12.6
  11.6
  10.9
  10.3
  9.8
  9.4
  9.0
  8.7
  8.5
  8.3
  8.2
  8.1
  8.0
  7.9
  7.9
  7.9
  7.9
  7.9
  7.9

Kirby Corporation is a domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three United States coasts and in Alaska and Hawaii. The Company, through its subsidiaries, operates in two segments: Marine Transportation and Diesel Engine Services. The Company, through its Marine Transportation segment, is a provider of marine transportation services, operating tank barges and towing vessels transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along all three United States coasts and in Alaska and Hawaii. Its 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.

FINANCIAL RATIOS  of  Kirby (KEX)

Valuation Ratios
P/E Ratio 28.1
Price to Sales 2.2
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 9.6
Price to Free Cash Flow 21.7
Growth Rates
Sales Growth Rate -17.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -33%
Cap. Spend. - 3 Yr. Gr. Rate -1.8%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 30%
Total Debt to Equity 30%
Interest Coverage 12
Management Effectiveness
Return On Assets 3.6%
Ret/ On Assets - 3 Yr. Avg. 5.7%
Return On Total Capital 4.6%
Ret/ On T. Cap. - 3 Yr. Avg. 7.3%
Return On Equity 6%
Return On Equity - 3 Yr. Avg. 9.8%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 36.4%
Gross Margin - 3 Yr. Avg. 35.6%
EBITDA Margin 25.4%
EBITDA Margin - 3 Yr. Avg. 25.7%
Operating Margin 13.9%
Oper. Margin - 3 Yr. Avg. 16.7%
Pre-Tax Margin 12.9%
Pre-Tax Margin - 3 Yr. Avg. 15.8%
Net Profit Margin 8%
Net Profit Margin - 3 Yr. Avg. 9.8%
Effective Tax Rate 37.3%
Eff/ Tax Rate - 3 Yr. Avg. 37.2%
Payout Ratio 0%

KEX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KEX stock intrinsic value calculation we used $2214.418 million for the last fiscal year's total revenue generated by Kirby. The default revenue input number comes from 0001 income statement of Kirby. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our KEX stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.9%, whose default value for KEX is calculated based on our internal credit rating of Kirby, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Kirby.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of KEX stock the variable cost ratio is equal to 86.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for KEX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Kirby.

Corporate tax rate of 27% is the nominal tax rate for Kirby. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the KEX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for KEX are equal to 153.7%.

Life of production assets of 19.1 years is the average useful life of capital assets used in Kirby operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for KEX is equal to 20.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3110.82 million for Kirby - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 59.873 million for Kirby is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Kirby at the current share price and the inputted number of shares is $4.4 billion.

RELATED COMPANIES Price Int.Val. Rating
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COMPANY NEWS

▶ Is Kirby Corporation (NYSE:KEX) Potentially Undervalued?   [Nov-09-18 02:41PM  Simply Wall St.]
▶ Kirby (KEX) Q3 Earnings Surpass Estimates   [Oct-25-18 07:35PM  Zacks]
▶ Kirby: 3Q Earnings Snapshot   [06:30PM  Associated Press]
▶ Is Kirby Corporation (NYSE:KEX) Attractive At This PE Ratio?   [Oct-05-18 09:41AM  Simply Wall St.]
▶ Stocks Pare Losses, And What It Means For The Dow To Clear 26,167   [Sep-14-18 03:08PM  Investor's Business Daily]
▶ Chuck Royce Comments on Kirby Corp   [Aug-17-18 05:53PM  GuruFocus.com]
▶ As Iran Sanctions Kick In, Look to US Oil Export Markets   [Aug-08-18 12:38PM  TheStreet.com]
▶ Kirby: 2Q Earnings Snapshot   [Jul-25-18 06:07PM  Associated Press]
▶ Kirby's Earnings Preview   [09:10AM  Benzinga]
▶ How Financially Strong Is Kirby Corporation (NYSE:KEX)?   [Jun-22-18 02:41PM  Simply Wall St.]
▶ Kirby Corporation To Webcast Analyst Day   [May-02-18 05:00PM  PR Newswire]
▶ Kirby Corporation to Host Earnings Call   [06:45AM  ACCESSWIRE]
▶ Kirby: 1Q Earnings Snapshot   [Apr-25-18 07:31PM  Associated Press]
▶ Kirby Corp. to acquire another marine transportation co. for $419M   [09:25AM  American City Business Journals]
▶ Kirby Corporation to Host Earnings Call   [Feb-01-18 07:00AM  ACCESSWIRE]
▶ Kirby beats Street 4Q forecasts   [Jan-31-18 06:45PM  Associated Press]
▶ 4 Reasons Wells Fargo Is Growing Positive On Kirby   [Jan-22-18 09:47AM  Benzinga]
▶ Kirby Corp. Value Analysis (NYSE:KEX) : November 13, 2017   [Nov-13-17 02:10PM  Capital Cube]
▶ Kirby Corporation to Host Earnings Call   [Nov-02-17 07:05AM  ACCESSWIRE]
▶ Kirby beats Street 3Q forecasts   [05:49AM  Associated Press]
▶ Kirby Corporation Announces 2017 Third Quarter Results   [Nov-01-17 05:54PM  PR Newswire]
▶ Houston energy company buys Conroe company, hires former Kirby CFO   [Sep-05-17 12:45PM  American City Business Journals]
▶ ETFs with exposure to Kirby Corp. : August 23, 2017   [Aug-23-17 04:29PM  Capital Cube]
▶ Kirby Corp. CFO to resign   [Aug-18-17 10:00AM  American City Business Journals]

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