River Barges - $KEX??

Share and discuss ideas on how to financially navigate the peak oil situation
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Tom
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Posts: 7
Joined: Thu Oct 20, 2022 6:25 pm

River Barges - $KEX??

Post by Tom »

One of the most efficient ways of transporting commodities is via river. Beats even rail. If we're still somewhat of a civilization still trading anything river transports will still be in biz.

But the only publicly traded co with exposure here is Kirby Corporation (KEX). Sporting a hot -3.76 eps I just can't get the gumption to hit the Buy button. Any true analysis why I may be overthinking it?

Alternatively, I'm also trying to chase down 2nd order beneficiaries but know nothing of the industry. Any stocks with exposure to barge manufacturing? Docks? Etc..?
Tokamak
Posts: 4
Joined: Fri Oct 21, 2022 12:03 pm

Re: River Barges - $KEX??

Post by Tokamak »

Thanks for introducing this company - I hadn't heard of them before.
Looking at the results over the years they are very up and down depending on external conditions (ie cyclical).
They are expecting to produce upwards of $200 million free cash flow this year which puts them on a FCFPE of 20 @ $68.
Most of their cargo's are for the petrochemical industry & I would ask whether they would be able to benefit from declining volumes of oil etc or maybe their revenues would just decline (unlike their cost base).
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