World Fuel Services Corp. : INT-US: Dividend Analysis : June 09th, 2017 (record date) : By the numbers : June 8, 2017

Our analysis is based on comparing World Fuel Services Corp. with the following peers – Global Partners LP, Crestwood Equity Partners LP, Suburban Propane Partners, L.P., Aegean Marine Petroleum Network Inc., Adams Resources & Energy, Inc., Sprague Resources LP, Tesoro Corporation and Marathon Petroleum Corporation (GLP-US, CEQP-US, SPH-US, ANW-US, AE-US, SRLP-US, TSO-US and MPC-US).

World Fuel Services Corp.’s dividend yield is 0.85 percent and its dividend payout is 15.79 percent. This compares to a peer average dividend yield of 2.72 percent and a payout level of 36.01 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), INT-US paid a low quality dividend, which represents a yield of 0.68% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 2 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 40.56x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to March 31, 2017), INT-US paid a low quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 5.62x), investing cash flow (coverage of -28.72x), issuance cash flow (coverage of 13.18x) and twelve-month prior cash (coverage of 51.78x), for a total dividend coverage of 41.56x.

INT-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -3.19x). Thus, the total coverage including share buybacks is 44.75x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0.36 0.34 0.31 0.56 0.52 0.85
Dividend Payout (%) 5.68 5.3 4.82 9.09 13.26 15.79

A complete list of metrics and analysis is available on the company page.

Company Profile

World Fuel Services Corp. is a fuel logistic company, which is principally engaged in the marketing, sale and distribution of aviation, marine, and land fuel products and related services on a worldwide basis. It operates through the following segments: Aviation, Marine and Land. The Aviation segment markets fuel and related services to major commercial airlines, second and third-tier airlines, cargo carriers, regional and low-cost carriers, flight based operators, corporate fleets, fractional operators, private aircraft, military fleets and to the U.S. and foreign governments. It services include fuel management, price risk management, arranging ground handling, providing global dispatch services 24 hours a day, seven days of the week, and arranging and providing international trip planning including flight plans, weather reports and over flight permits. The Marine segment markets fuel and related services to a broad base of marine customers including international container and tanker fleets, commercial cruise lines and time-charter operators, as well as to the U.S. and foreign governments. Its marine fuel related services include management services for the procurement of fuel, cost control through the use of price hedging instruments, quality control and claims management. The Land segment markets fuel, lubricants and related services to petroleum distributors operating in the land transportation market, retail petroleum operators and industrial, commercial and government customers. World Fuel Services was founded in July 1984 and is headquartered in Miami, FL.

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