WORLD FUEL SERVICES CORP (INT)
US9814751064 - Common Stock
We assign a fundamental rating of 4 out of 10 to INT. INT was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of INT is average, but there are quite some concerns on its profitability. INT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year INT was profitable.
INT had a positive operating cash flow in the past year.
Each year in the past 5 years INT has been profitable.
Of the past 5 years INT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of INT (1.48%) is worse than 75.34% of its industry peers.
The Return On Equity of INT (5.51%) is worse than 72.20% of its industry peers.
INT has a Return On Invested Capital of 6.85%. This is in the lower half of the industry: INT underperforms 65.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INT is significantly below the industry average of 44.58%.
The 3 year average ROIC (4.95%) for INT is below the current ROIC(6.85%), indicating increased profibility in the last year.
| 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
INT has a Profit Margin of 0.19%. This is amonst the worse of the industry: INT underperforms 81.17% of its industry peers.
In the last couple of years the Profit Margin of INT has declined.
INT's Operating Margin of 0.50% is on the low side compared to the rest of the industry. INT is outperformed by 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.
In the last couple of years the Gross Margin of INT has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INT is destroying value.
The number of shares outstanding for INT has been increased compared to 1 year ago.
Compared to 5 years ago, INT has less shares outstanding
The debt/assets ratio for INT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.64 indicates that INT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.64, INT belongs to the best of the industry, outperforming 92.83% of the companies in the same industry.
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.
The Debt to FCF ratio of INT (2.66) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.35 indicates that INT is not too dependend on debt financing.
INT has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: INT outperforms 58.30% of its industry peers.
| 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.
INT has a Current ratio (1.11) which 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 has a Quick ratio of 0.96. This is comparable 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
INT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.55%, which is quite impressive.
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.
Looking at the last year, INT shows a very strong growth in Revenue. The Revenue has grown by 56.62%.
INT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.87% yearly.
EPS 1Y (TTM)36.55%
EPS 3Y-10.86%
EPS 5Y1.97%
EPS growth Q2Q-14.29%
Revenue 1Y (TTM)56.62%
Revenue growth 3Y17.05%
Revenue growth 5Y11.87%
Revenue growth Q2Q0.8%
3.2 Future
The Earnings Per Share is expected to grow by 14.22% on average over the next years. This is quite good.
The Revenue is expected to decrease by -4.18% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
INT's Price/Earnings ratio is a bit more expensive when compared to the industry. INT is more expensive than 65.47% of the companies in the same industry.
INT is valuated cheaply when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 9.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as INT.
INT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. INT is cheaper than 65.47% of the companies in the same industry.
| 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
INT has a Yearly Dividend Yield of 2.47%.
INT's Dividend Yield is comparable with the industry average which is at 5.72.
INT's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
The dividend of INT is nicely growing with an annual growth rate of 17.57%!
INT has paid a dividend for at least 10 years, which is a reliable track record.
INT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
INT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.11%
EPS Next 2Y11.7%
EPS Next 3Y14.22%
WORLD FUEL SERVICES CORP
NYSE:INT (6/15/2023, 7:05:22 PM)
After market: 24.26 0 (0%)24.26
+0.17 (+0.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 9.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.77
PEG (5Y)6.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.5% | ||
| PM (TTM) | 0.19% | ||
| GM | 1.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover7.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)36.55%
EPS 3Y-10.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)56.62%
Revenue growth 3Y17.05%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y