Operating Margin - World Fuel Services Corp (F:WFK)

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Price: 23.4 EUR 0.86%

Market Cap: 1.4B EUR

0.6%

Current

Average

10.5%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

0.6%

Operating Profit

237.2m

Revenue

37.6B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US	W	World Fuel Services Corp F:WFK	1.3B EUR	1%
IN		Reliance Industries Ltd NSE:RELIANCE	19.7T INR	12%
US		Valero Energy Corp NYSE:VLO	56.3B USD	3%
US		Phillips 66 NYSE:PSX	56.4B USD	2%
US		Marathon Petroleum Corp NYSE:MPC	54.9B USD	5%
PL		Polski Koncern Naftowy Orlen SA WSE:PKN	115.7B PLN	10%
PL	O	Orlen SA PSE:PKN	663.1B CZK	10%
IN		Indian Oil Corporation Ltd NSE:IOC	2.2T INR	4%
JP		ENEOS Holdings Inc TSE:5020	3.3T JPY	1%
FI		Neste Oyj OMXH:NESTE	15.7B EUR	1%
IN		Bharat Petroleum Corporation Ltd NSE:BPCL	1.6T INR	5%

World Fuel Services Corp
Glance View

Market Cap

1.3B EUR

Industry

Energy

World Fuel Services Corporation, a name that resonates with global energy markets, navigates the intricate web of fuel procurement, distribution, and logistics with a deft hand. Founded in 1984, the company has charted a course through the energy sector’s turbulent waters by providing fuel solutions across land, sea, and air. Headquartered in Miami, Florida, World Fuel Services operates in over 200 countries and territories, making it a truly global enterprise. Its business model is akin to that of a seasoned mariner, leveraging a deep understanding of the market to deliver customized fuel, energy, and logistics services. This involves not just the sourcing and supply of traditional fuels like jet fuel and marine bunkers but also extends to natural gas and energy advisory services, which cater to the evolving needs of its diverse clientele. At the heart of World Fuel Services' revenue engine lies its role as an intermediary, a vital link between energy producers and the vast expanse of customers ranging from airlines and shipping companies to industrial and government clients. The company's strategic prowess is evident in its ability to capitalize on its extensive network and robust supply chain to deliver competitive pricing and tailored energy solutions. Rather than merely selling fuel, it offers a suite of services that includes price risk management, logistical support, and sustainability consulting. This multifaceted approach not only mitigates the complexities involved in energy procurement but also positions World Fuel Services as a trusted partner capable of navigating the fluctuating tides of global energy markets. By synthesizing traditional fuel services with innovative energy solutions, the company continues to bolster its market position while adapting to the dynamic landscape of the energy industry.

View WFK Analysis

WFK Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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	Yusei Holdings Ltd HKEX:96	0.56 HKD
N	Neo Telemedia Ltd HKEX:8167	1 421 HKD -0.7%

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	Berkshire Hathaway Inc NYSE:BRK.A	738 690.9 USD -0.64%
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	Skyworks Solutions Inc NASDAQ:SWKS	58.46 USD -2.34%
	Weatherford International PLC NASDAQ:WFRD	84.11 USD -2.99%

World Fuel Services Corp
F:WFK