WORLD FUEL SERVICES CORP (INT) Stock Fundamental Analysis
NYSE:INT - New York Stock Exchange, Inc. - US9814751064 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to INT. INT was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. INT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. INT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
INT had positive earnings in the past year.
In the past year INT had a positive cash flow from operations.
Each year in the past 5 years INT has been profitable.
INT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
INT has a Return On Assets of 1.48%. This is in the lower half of the industry: INT underperforms 75.34% of its industry peers.
INT's Return On Equity of 5.51% is on the low side compared to the rest of the industry. INT is outperformed by 72.20% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.85%, INT is doing worse than 65.47% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for INT is significantly below the industry average of 23.99%.
The last Return On Invested Capital (6.85%) for INT is above the 3 year average (4.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.51% | ||
| ROIC | 6.85% |
ROA(3y)1.69%
ROA(5y)2.06%
ROE(3y)5.12%
ROE(5y)6.38%
ROIC(3y)4.95%
ROIC(5y)6.27%
1.3 Margins
With a Profit Margin value of 0.19%, INT is not doing good in the industry: 81.17% of the companies in the same industry are doing better.
INT's Profit Margin has declined in the last couple of years.
The Operating Margin of INT (0.50%) is worse than 83.41% of its industry peers.
In the last couple of years the Operating Margin of INT has declined.
Looking at the Gross Margin, with a value of 1.89%, INT is doing worse than 82.96% of the companies in the same industry.
INT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.5% | ||
| PM (TTM) | 0.19% | ||
| GM | 1.89% |
OM growth 3Y-18.97%
OM growth 5Y-4.68%
PM growth 3Y-26.47%
PM growth 5YN/A
GM growth 3Y-15.16%
GM growth 5Y-7.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INT is destroying value.
INT has more shares outstanding than it did 1 year ago.
The debt/assets ratio for INT is higher compared to a year ago.
2.2 Solvency
INT has an Altman-Z score of 8.64. This indicates that INT is financially healthy and has little risk of bankruptcy at the moment.
INT has a Altman-Z score of 8.64. This is amongst the best in the industry. INT outperforms 92.83% of its industry peers.
The Debt to FCF ratio of INT is 2.66, which is a good value as it means it would take INT, 2.66 years of fcf income to pay off all of its debts.
INT has a Debt to FCF ratio (2.66) which is comparable to the rest of the industry.
INT has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, INT is in line with its industry, outperforming 58.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 8.64 |
ROIC/WACC0.61
WACC11.17%
2.3 Liquidity
INT has a Current Ratio of 1.11. This is a normal value and indicates that INT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of INT (1.11) is comparable to the rest of the industry.
INT has a Quick Ratio of 1.11. This is a bad value and indicates that INT is not financially healthy enough and could expect problems in meeting its short term obligations.
INT's Quick ratio of 0.96 is in line compared to the rest of the industry. INT outperforms 46.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.55% over the past year.
Measured over the past 5 years, INT shows a small growth in Earnings Per Share. The EPS has been growing by 1.97% on average per year.
The Revenue has grown by 56.62% in the past year. This is a very strong growth!
The Revenue has been growing by 11.87% on average over the past years. This is quite good.
EPS 1Y (TTM)36.55%
EPS 3Y-10.86%
EPS 5Y1.97%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)56.62%
Revenue growth 3Y17.05%
Revenue growth 5Y11.87%
Sales Q2Q%0.8%
3.2 Future
Based on estimates for the next years, INT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.22% on average per year.
INT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.18% yearly.
EPS Next Y6.94%
EPS Next 2Y11.7%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue Next Year-11.76%
Revenue Next 2Y-9.14%
Revenue Next 3Y-4.18%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.25, the valuation of INT can be described as correct.
Based on the Price/Earnings ratio, INT is valued a bit more expensive than 65.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of INT to the average of the S&P500 Index (27.24), we can say INT is valued rather cheaply.
A Price/Forward Earnings ratio of 9.53 indicates a reasonable valuation of INT.
INT's Price/Forward Earnings ratio is in line with the industry average.
INT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 9.53 |
4.2 Price Multiples
INT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, INT is valued a bit cheaper than the industry average as 65.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.53 | ||
| EV/EBITDA | 5.01 |
4.3 Compensation for Growth
INT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as INT's earnings are expected to grow with 14.22% in the coming years.
PEG (NY)1.77
PEG (5Y)6.21
EPS Next 2Y11.7%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.47%, INT has a reasonable but not impressive dividend return.
INT's Dividend Yield is comparable with the industry average which is at 6.34.
Compared to an average S&P500 Dividend Yield of 2.40, INT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
On average, the dividend of INT grows each year by 17.57%, which is quite nice.
INT has been paying a dividend for at least 10 years, so it has a reliable track record.
INT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.57%
Div Incr Years4
Div Non Decr Years12
5.3 Sustainability
INT pays out 29.11% of its income as dividend. This is a sustainable payout ratio.
The dividend of INT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.11%
EPS Next 2Y11.7%
EPS Next 3Y14.22%
24.26
+0.17 (+0.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change1.03%
Ins Owners0.72%
Ins Owner Change0%
Market Cap1.51B
Analysts86.67
Price Target32.64 (34.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend0.52
Dividend Growth(5Y)17.57%
DP29.11%
Div Incr Years4
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.61%
Min EPS beat(2)1.84%
Max EPS beat(2)11.39%
EPS beat(4)4
Avg EPS beat(4)14.21%
Min EPS beat(4)1.84%
Max EPS beat(4)39.98%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.7%
Min Revenue beat(2)-4.44%
Max Revenue beat(2)-2.95%
Revenue beat(4)1
Avg Revenue beat(4)7.67%
Min Revenue beat(4)-4.44%
Max Revenue beat(4)40.22%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-8.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 9.53 | ||
| P/S | 0.03 | ||
| P/FCF | 5.53 | ||
| P/OCF | 4.26 | ||
| P/B | 0.75 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 5.01 |
EPS(TTM)1.98
EY8.16%
EPS(NY)2.55
Fwd EY10.49%
FCF(TTM)4.39
FCFY18.1%
OCF(TTM)5.69
OCFY23.45%
SpS951.93
BVpS32.32
TBVpS7.19
PEG (NY)1.77
PEG (5Y)6.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.51% | ||
| ROCE | N/A | ||
| ROIC | 6.85% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 14.69% | ||
| OM | 0.5% | ||
| PM (TTM) | 0.19% | ||
| GM | 1.89% | ||
| FCFM | N/A |
ROA(3y)1.69%
ROA(5y)2.06%
ROE(3y)5.12%
ROE(5y)6.38%
ROIC(3y)4.95%
ROIC(5y)6.27%
ROICexc(3y)6.02%
ROICexc(5y)7.17%
ROICexgc(3y)17.52%
ROICexgc(5y)18.31%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-15.77%
ROICexcg growth 5Y-0.75%
ROICexc growth 3Y-11.53%
ROICexc growth 5Y1.11%
OM growth 3Y-18.97%
OM growth 5Y-4.68%
PM growth 3Y-26.47%
PM growth 5YN/A
GM growth 3Y-15.16%
GM growth 5Y-7.78%
F-Score7
Asset Turnover7.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 75.85% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 246.66% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 8.64 |
F-Score7
WACC11.17%
ROIC/WACC0.61
Cap/Depr(3y)60.37%
Cap/Depr(5y)72.47%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)245.58%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.55%
EPS 3Y-10.86%
EPS 5Y1.97%
EPS Q2Q%-14.29%
EPS Next Y6.94%
EPS Next 2Y11.7%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue 1Y (TTM)56.62%
Revenue growth 3Y17.05%
Revenue growth 5Y11.87%
Sales Q2Q%0.8%
Revenue Next Year-11.76%
Revenue Next 2Y-9.14%
Revenue Next 3Y-4.18%
Revenue Next 5YN/A
EBIT growth 1Y90.55%
EBIT growth 3Y-5.16%
EBIT growth 5Y6.63%
EBIT Next Year40.91%
EBIT Next 3Y17.3%
EBIT Next 5YN/A
FCF growth 1Y-58.8%
FCF growth 3Y-26.01%
FCF growth 5YN/A
OCF growth 1Y-49.36%
OCF growth 3Y-15.41%
OCF growth 5YN/A