Kirby's Marine Business Recovers, But Energy And Valuation Are Challenges

I thought Kirby's (KEX) marine business was likely to improve when I last wrote about the company in August of 2018, but I also thought the valuation anticipated that. To that end, the shares are about 7% lower than the time of that last article, but there were some pretty significant swings in the meantime, as shares fell almost 30% to their December lows before a meaningful rally. During that period, Kirby's marine business has indeed showed ongoing signs of improvement and recovery, with improved utilization, pricing, and margins in the inland business, and a slower recovery in coastal, but a recovery all the same.

With shares having basically round-tripped in the interim, my feelings on valuation haven't changed that much. In the $70s (or below), this is a good name to consider for its strong position in inland petrochemical barging and the prospects for an improving mix in its diesel engine service business. At today's prices, though, I'm not quite so interested.

Click here for more:
Kirby's Marine Business Recovers, But Energy And Valuation Are Challenges