As of May 22, 2025, World Fuel Services Corp has a Discounted Cash Flow (DCF) derived fair value of $37.14 per share. With the current market price at $24.26, this represents a potential upside of 53.1%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $36.79 |
| DCF Fair Value (10-year) | $37.14 |
| Potential Upside (5-year) | 51.7% |
| Potential Upside (10-year) | 53.1% |
| Discount Rate (WACC) | 6.8% - 9.7% |
Revenue is projected to grow from $59043 million in 12-2022 to $63201 million by 12-2032, representing a compound annual growth rate of approximately 0.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2022 | 59043 | 88% |
| 12-2023 | 52418 | -11% |
| 12-2024 | 49041 | -6% |
| 12-2025 | 52154 | 6% |
| 12-2026 | 53197 | 2% |
| 12-2027 | 54261 | 2% |
| 12-2028 | 55346 | 2% |
| 12-2029 | 56798 | 3% |
| 12-2030 | 59910 | 5% |
| 12-2031 | 61108 | 2% |
| 12-2032 | 63201 | 3% |
Net profit margin is expected to improve from 0% in 12-2022 to 0% by 12-2032, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2022 | 116 | 0% |
| 12-2023 | 96 | 0% |
| 12-2024 | 89 | 0% |
| 12-2025 | 95 | 0% |
| 12-2026 | 97 | 0% |
| 12-2027 | 99 | 0% |
| 12-2028 | 101 | 0% |
| 12-2029 | 104 | 0% |
| 12-2030 | 109 | 0% |
| 12-2031 | 111 | 0% |
| 12-2032 | 115 | 0% |
. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2023 | 52 |
| 12-2024 | 68 |
| 12-2025 | 76 |
| 12-2026 | 86 |
| 12-2027 | 89 |
| 12-2028 | 90 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 23 |
| Days Inventory | 6 |
| Days Payables | 25 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2023 | 279 | 33 | 89 | 149 | 8 |
| 2024 | 281 | 31 | 83 | (107) | 273 |
| 2025 | 302 | 33 | 89 | 12 | 168 |
| 2026 | 316 | 34 | 90 | 52 | 140 |
| 2027 | 324 | 34 | 92 | (5) | 202 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 36.79 | 51.7% |
| 10-Year DCF (Growth) | 37.14 | 53.1% |
| 5-Year DCF (EBITDA) | 25.96 | 7.0% |
| 10-Year DCF (EBITDA) | 28.91 | 19.2% |
Is World Fuel Services Corp (INT) a buy or a sell? World Fuel Services Corp is definitely a buy. Based on our DCF analysis, World Fuel Services Corp (INT) appears to be significantly undervalued with upside potential of 53.1%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $24.26.