World Fuel Services Corporation (NYSE:INT), an energy company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $27.91 and falling to the lows of $21.23. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether World Fuel Services’s current trading price of $21.23 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at World Fuel Services’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for World Fuel Services
What’s the opportunity in World Fuel Services?
Good news, investors! World Fuel Services is still a bargain right now. According to my valuation, the intrinsic value for the stock is $91.33, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. World Fuel Services’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will World Fuel Services generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. World Fuel Services’s revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since INT is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on INT for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy INT. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.