DB:WFK

Stock Analysis Report

World Fuel Services

Executive Summary

World Fuel Services Corporation engages in the distribution of fuel, and related products and services in the aviation, marine, and land transportation industries worldwide.

Rewards

PE ratio (15.9x) is below the German market (20.8x)

Earnings are forecast to grow 15.29% per year

Became profitable this year

Risk Analysis

No risks detected for WFK from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has World Fuel Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WFK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

WFK

-2.8%

DE Oil and Gas

-0.9%

DE Market


1 Year Return

50.2%

WFK

74.7%

DE Oil and Gas

12.8%

DE Market

Return vs Industry: WFK underperformed the German Oil and Gas industry which returned 74.7% over the past year.

Return vs Market: WFK exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

WFKIndustryMarket
7 Day-2.8%-2.8%-0.9%
30 Day-5.5%-1.1%0.6%
90 Day-12.2%25.7%2.9%
1 Year51.8%50.2%79.7%74.7%16.3%12.8%
3 Year2.7%-0.1%13.1%3.8%15.8%5.7%
5 Year-26.0%-28.8%310.6%247.0%19.7%3.3%

Price Volatility Vs. Market

How volatile is World Fuel Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is World Fuel Services undervalued compared to its fair value and its price relative to the market?

15.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WFK (€34.6) is trading above our estimate of fair value (€24.59)

Significantly Below Fair Value: WFK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WFK is poor value based on its PE Ratio (15.9x) compared to the Oil and Gas industry average (10.7x).

PE vs Market: WFK is good value based on its PE Ratio (15.9x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: WFK is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: WFK is good value based on its PB Ratio (1.3x) compared to the DE Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is World Fuel Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WFK's forecast earnings growth (15.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: WFK's earnings (15.3% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: WFK's earnings are forecast to grow, but not significantly.

Revenue vs Market: WFK's revenue (9.7% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: WFK's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WFK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has World Fuel Services performed over the past 5 years?

-29.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WFK has high quality earnings.

Growing Profit Margin: WFK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WFK's earnings have declined by -29% per year over the past 5 years.

Accelerating Growth: WFK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WFK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-5.1%).


Return on Equity

High ROE: WFK's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is World Fuel Services's financial position?


Financial Position Analysis

Short Term Liabilities: WFK's short term assets ($4.0B) exceed its short term liabilities ($2.9B).

Long Term Liabilities: WFK's short term assets ($4.0B) exceed its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: WFK's debt to equity ratio (36.1%) is considered satisfactory.

Reducing Debt: WFK's debt to equity ratio has reduced from 42.3% to 36.1% over the past 5 years.

Debt Coverage: WFK's debt is well covered by operating cash flow (45%).

Interest Coverage: WFK's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: WFK has a low level of unsold assets or inventory.

Debt Coverage by Assets: WFK's debt is covered by short term assets (assets are 5.9x debt).


Next Steps

Dividend

What is World Fuel Services's current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WFK's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: WFK's dividend (1.1%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: WFK's dividends per share have been stable in the past 10 years.

Growing Dividend: WFK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14%), WFK's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Mike Kasbar (62yo)

8.1yrs

Tenure

US$4,893,113

Compensation

Mr. Michael J. Kasbar, also known as Mike, has been the Chief Executive Officer of World Fuel Services Corp. since January 1, 2012 and July 2002 respectively. He served as President of World Fuel Services  ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.89M) is above average for companies of similar size in the German market ($USD1.52M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Kasbar
Chairman & CEO8.1yrsUS$4.89m1.04% $22.7m
Ira Birns
Executive VP & CFO12.8yrsUS$1.90m0.096% $2.1m
Jeffrey Smith
Chief Operating Officer2.3yrsUS$1.93mno data
Michael Crosby
Executive Vice President of Global Land3.9yrsUS$1.80m0.083% $1.8m
John Rau
Executive Vice President of Global Aviation & Marine3.9yrsUS$2.03m0.11% $2.3m
Glenn Klevitz
VP, Treasurer & Investor Relations0yrsno datano data
Robert Lake
Executive VP2.9yrsno data0.075% $1.6m
Amy Abraham
Senior VP & Chief Marketing Officer0yrsno datano data
Wade DeClaris
Chief Commercial Officer0yrsno datano data
Boon Meng Lee
Executive Vice President of Marine0yrsno datano data

3.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: WFK's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Kasbar
Chairman & CEO8.1yrsUS$4.89m1.04% $22.7m
Paul Stebbins
Chairman Emeritus5.8yrsUS$221.42k0.58% $12.7m
Stephen Roddenberry
Lead Independent Director2.8yrsUS$296.63k0.14% $3.1m
Richard Kassar
Independent Director17.5yrsUS$263.63k0.082% $1.8m
Kanwaljit Bakshi
Independent Director17.5yrsUS$287.63k0.081% $1.8m
Stephen Gold
Independent Director2.3yrsUS$240.00k0.016% $339.6k
John Manley
Independent Director9.3yrsUS$273.63k0.054% $1.2m
Jorge Benitez
Independent Director5.1yrsUS$261.53k0.037% $805.0k
Sharda Cherwoo
Director0yrsno datano data

5.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: WFK's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

World Fuel Services Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: World Fuel Services Corporation
  • Ticker: WFK
  • Exchange: DB
  • Founded: 1984
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: US$2.372b
  • Listing Market Cap: US$2.184b
  • Shares outstanding: 65.39m
  • Website: https://www.wfscorp.com

Number of Employees


Location

  • World Fuel Services Corporation
  • 9800 Northwest 41st Street
  • Miami
  • Florida
  • 33178
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INTNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1986
WFKDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1986

Biography

World Fuel Services Corporation engages in the distribution of fuel, and related products and services in the aviation, marine, and land transportation industries worldwide. Its Aviation segment supplies fuel, and related products and services to commercial airlines, second and third tier airlines, cargo carriers, regional and low-cost carriers, airports, fixed based operators, corporate fleets, fractional operators, private aircraft, military fleets, the U.S. and foreign governments, and intergovernmental organizations. This segment also offers fuel management, price risk management, ground handling, and dispatch services, as well as international trip planning services, such as flight plans, weather reports, and overflight permits. The company’s Land segment offers fuel, heating oil, propane, natural gas, lubricants, and related products and services to petroleum distributors and retail petroleum operators, as well as industrial, commercial, residential, and government customers. This segment also offers management services for procuring fuel and price risk management; advisory and fulfillment solutions related to power, natural gas, and other energy products; and card payment solutions, government payment systems for fuel procurement, merchant processing services, toll payment solutions, and commercial payment programs. Its Marine segment markets fuel, lubricants, and related products and services to international container and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. Its marine fuel-related services include management services to procure fuel, cost control, quality control, claims management, and card payment and related processing services. This segment also engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was founded in 1984 and is headquartered in Miami, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:42
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.