Intrinsic value of Aegean Marine Petroleum Network - ANW

Previous Close

$4.50

  Intrinsic Value

$3.39

stock screener

  Rating & Target

sell

-25%

  Value-price divergence*

+48%

Previous close

$4.50

 
Intrinsic value

$3.39

 
Up/down potential

-25%

 
Rating

sell

 
Value-price divergence*

+48%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ANW stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -3.69
  45.90
  41.81
  38.13
  34.82
  31.83
  29.15
  26.74
  24.56
  22.61
  20.85
  19.26
  17.83
  16.55
  15.40
  14.36
  13.42
  12.58
  11.82
  11.14
  10.52
  9.97
  9.48
  9.03
  8.62
  8.26
  7.94
  7.64
  7.38
  7.14
  6.93
Revenue, $m
  4,076
  5,947
  8,433
  11,649
  15,704
  20,704
  26,739
  33,888
  42,212
  51,755
  62,543
  74,589
  87,892
  102,440
  118,212
  135,183
  153,326
  172,612
  193,017
  214,516
  237,094
  260,738
  285,444
  311,213
  338,055
  365,987
  395,032
  425,223
  456,597
  489,200
  523,085
Variable operating expenses, $m
 
  5,837
  8,274
  11,427
  15,403
  20,304
  26,221
  33,230
  41,390
  50,746
  61,323
  73,126
  86,168
  100,430
  115,892
  132,531
  150,317
  169,226
  189,230
  210,308
  232,443
  255,623
  279,844
  305,107
  331,423
  358,806
  387,282
  416,880
  447,639
  479,603
  512,822
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  3,982
  5,837
  8,274
  11,427
  15,403
  20,304
  26,221
  33,230
  41,390
  50,746
  61,323
  73,126
  86,168
  100,430
  115,892
  132,531
  150,317
  169,226
  189,230
  210,308
  232,443
  255,623
  279,844
  305,107
  331,423
  358,806
  387,282
  416,880
  447,639
  479,603
  512,822
Operating income, $m
  94
  110
  159
  222
  302
  400
  518
  658
  822
  1,009
  1,220
  1,463
  1,724
  2,010
  2,319
  2,652
  3,008
  3,387
  3,787
  4,209
  4,652
  5,115
  5,600
  6,106
  6,632
  7,180
  7,750
  8,343
  8,958
  9,598
  10,263
EBITDA, $m
  137
  173
  246
  339
  457
  603
  778
  987
  1,229
  1,507
  1,821
  2,172
  2,559
  2,982
  3,441
  3,936
  4,464
  5,025
  5,619
  6,245
  6,903
  7,591
  8,310
  9,060
  9,842
  10,655
  11,501
  12,379
  13,293
  14,242
  15,229
Interest expense (income), $m
  26
  25
  40
  60
  85
  117
  156
  204
  260
  325
  400
  485
  580
  685
  799
  923
  1,057
  1,199
  1,351
  1,512
  1,681
  1,858
  2,044
  2,239
  2,442
  2,653
  2,872
  3,101
  3,338
  3,585
  3,842
Earnings before tax, $m
  56
  85
  119
  162
  217
  283
  362
  455
  562
  683
  820
  978
  1,144
  1,325
  1,520
  1,729
  1,951
  2,187
  2,436
  2,697
  2,971
  3,257
  3,556
  3,867
  4,191
  4,528
  4,878
  5,242
  5,620
  6,012
  6,421
Tax expense, $m
  4
  23
  32
  44
  58
  76
  98
  123
  152
  185
  221
  264
  309
  358
  410
  467
  527
  591
  658
  728
  802
  879
  960
  1,044
  1,132
  1,222
  1,317
  1,415
  1,517
  1,623
  1,734
Net income, $m
  52
  62
  87
  119
  158
  206
  264
  332
  410
  499
  599
  714
  835
  967
  1,110
  1,262
  1,425
  1,597
  1,778
  1,969
  2,169
  2,378
  2,596
  2,823
  3,059
  3,305
  3,561
  3,826
  4,102
  4,389
  4,687

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  94
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  1,601
  2,198
  3,118
  4,306
  5,806
  7,654
  9,885
  12,528
  15,605
  19,133
  23,121
  27,575
  32,493
  37,871
  43,701
  49,975
  56,682
  63,812
  71,355
  79,304
  87,650
  96,391
  105,525
  115,051
  124,974
  135,300
  146,038
  157,199
  168,797
  180,850
  193,377
Adjusted assets (=assets-cash), $m
  1,507
  2,198
  3,118
  4,306
  5,806
  7,654
  9,885
  12,528
  15,605
  19,133
  23,121
  27,575
  32,493
  37,871
  43,701
  49,975
  56,682
  63,812
  71,355
  79,304
  87,650
  96,391
  105,525
  115,051
  124,974
  135,300
  146,038
  157,199
  168,797
  180,850
  193,377
Revenue / Adjusted assets
  2.705
  2.706
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
  2.705
Average production assets, $m
  613
  892
  1,265
  1,747
  2,356
  3,106
  4,011
  5,083
  6,332
  7,763
  9,381
  11,188
  13,184
  15,366
  17,732
  20,277
  22,999
  25,892
  28,952
  32,177
  35,564
  39,111
  42,817
  46,682
  50,708
  54,898
  59,255
  63,783
  68,490
  73,380
  78,463
Working capital, $m
  411
  922
  1,307
  1,806
  2,434
  3,209
  4,145
  5,253
  6,543
  8,022
  9,694
  11,561
  13,623
  15,878
  18,323
  20,953
  23,765
  26,755
  29,918
  33,250
  36,750
  40,414
  44,244
  48,238
  52,399
  56,728
  61,230
  65,910
  70,773
  75,826
  81,078
Total debt, $m
  818
  1,144
  1,703
  2,425
  3,337
  4,461
  5,817
  7,424
  9,295
  11,440
  13,865
  16,572
  19,562
  22,832
  26,377
  30,192
  34,270
  38,605
  43,191
  48,024
  53,098
  58,413
  63,966
  69,758
  75,791
  82,069
  88,598
  95,384
  102,436
  109,764
  117,380
Total liabilities, $m
  1,011
  1,337
  1,896
  2,618
  3,530
  4,654
  6,010
  7,617
  9,488
  11,633
  14,058
  16,765
  19,755
  23,025
  26,570
  30,385
  34,463
  38,798
  43,384
  48,217
  53,291
  58,606
  64,159
  69,951
  75,984
  82,262
  88,791
  95,577
  102,629
  109,957
  117,573
Total equity, $m
  590
  862
  1,222
  1,688
  2,276
  3,000
  3,875
  4,911
  6,117
  7,500
  9,064
  10,809
  12,737
  14,845
  17,131
  19,590
  22,219
  25,014
  27,971
  31,087
  34,359
  37,785
  41,366
  45,100
  48,990
  53,038
  57,247
  61,622
  66,169
  70,893
  75,804
Total liabilities and equity, $m
  1,601
  2,199
  3,118
  4,306
  5,806
  7,654
  9,885
  12,528
  15,605
  19,133
  23,122
  27,574
  32,492
  37,870
  43,701
  49,975
  56,682
  63,812
  71,355
  79,304
  87,650
  96,391
  105,525
  115,051
  124,974
  135,300
  146,038
  157,199
  168,798
  180,850
  193,377
Debt-to-equity ratio
  1.386
  1.330
  1.390
  1.440
  1.470
  1.490
  1.500
  1.510
  1.520
  1.530
  1.530
  1.530
  1.540
  1.540
  1.540
  1.540
  1.540
  1.540
  1.540
  1.540
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
Adjusted equity ratio
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392
  0.392

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  52
  62
  87
  119
  158
  206
  264
  332
  410
  499
  599
  714
  835
  967
  1,110
  1,262
  1,425
  1,597
  1,778
  1,969
  2,169
  2,378
  2,596
  2,823
  3,059
  3,305
  3,561
  3,826
  4,102
  4,389
  4,687
Depreciation, amort., depletion, $m
  43
  63
  87
  117
  156
  203
  260
  328
  407
  498
  600
  708
  834
  973
  1,122
  1,283
  1,456
  1,639
  1,832
  2,037
  2,251
  2,475
  2,710
  2,955
  3,209
  3,475
  3,750
  4,037
  4,335
  4,644
  4,966
Funds from operations, $m
  -242
  125
  173
  236
  314
  410
  525
  660
  817
  997
  1,199
  1,422
  1,670
  1,940
  2,232
  2,546
  2,880
  3,235
  3,610
  4,005
  4,420
  4,853
  5,306
  5,777
  6,269
  6,780
  7,311
  7,863
  8,437
  9,033
  9,653
Change in working capital, $m
  -194
  290
  385
  498
  629
  775
  935
  1,108
  1,290
  1,479
  1,672
  1,867
  2,062
  2,255
  2,445
  2,631
  2,812
  2,989
  3,163
  3,332
  3,500
  3,665
  3,829
  3,994
  4,161
  4,329
  4,502
  4,680
  4,863
  5,054
  5,252
Cash from operations, $m
  -48
  -165
  -212
  -263
  -315
  -365
  -411
  -448
  -473
  -482
  -473
  -445
  -392
  -315
  -213
  -85
  68
  246
  448
  673
  920
  1,188
  1,476
  1,783
  2,108
  2,450
  2,809
  3,184
  3,574
  3,980
  4,401
Maintenance CAPEX, $m
  0
  -39
  -56
  -80
  -111
  -149
  -197
  -254
  -322
  -401
  -491
  -594
  -708
  -834
  -973
  -1,122
  -1,283
  -1,456
  -1,639
  -1,832
  -2,037
  -2,251
  -2,475
  -2,710
  -2,955
  -3,209
  -3,475
  -3,750
  -4,037
  -4,335
  -4,644
New CAPEX, $m
  -11
  -279
  -373
  -482
  -608
  -750
  -905
  -1,072
  -1,249
  -1,431
  -1,618
  -1,807
  -1,995
  -2,182
  -2,366
  -2,546
  -2,721
  -2,893
  -3,061
  -3,225
  -3,387
  -3,547
  -3,706
  -3,865
  -4,026
  -4,190
  -4,357
  -4,529
  -4,706
  -4,890
  -5,083
Cash from investing activities, $m
  -4
  -318
  -429
  -562
  -719
  -899
  -1,102
  -1,326
  -1,571
  -1,832
  -2,109
  -2,401
  -2,703
  -3,016
  -3,339
  -3,668
  -4,004
  -4,349
  -4,700
  -5,057
  -5,424
  -5,798
  -6,181
  -6,575
  -6,981
  -7,399
  -7,832
  -8,279
  -8,743
  -9,225
  -9,727
Free cash flow, $m
  -52
  -483
  -641
  -825
  -1,034
  -1,264
  -1,513
  -1,774
  -2,043
  -2,314
  -2,583
  -2,846
  -3,096
  -3,332
  -3,551
  -3,753
  -3,937
  -4,103
  -4,252
  -4,385
  -4,503
  -4,609
  -4,705
  -4,792
  -4,873
  -4,949
  -5,022
  -5,095
  -5,169
  -5,245
  -5,326
Issuance/(repayment) of debt, $m
  99
  420
  559
  723
  912
  1,124
  1,357
  1,607
  1,871
  2,145
  2,425
  2,708
  2,990
  3,270
  3,545
  3,815
  4,078
  4,335
  4,586
  4,833
  5,075
  5,314
  5,553
  5,792
  6,033
  6,278
  6,529
  6,786
  7,052
  7,328
  7,616
Issuance/(repurchase) of shares, $m
  -80
  210
  274
  347
  430
  518
  610
  704
  796
  884
  965
  1,032
  1,092
  1,141
  1,176
  1,197
  1,205
  1,198
  1,179
  1,147
  1,103
  1,049
  985
  911
  831
  743
  648
  549
  444
  336
  223
Cash from financing (excl. dividends), $m  
  10
  630
  833
  1,070
  1,342
  1,642
  1,967
  2,311
  2,667
  3,029
  3,390
  3,740
  4,082
  4,411
  4,721
  5,012
  5,283
  5,533
  5,765
  5,980
  6,178
  6,363
  6,538
  6,703
  6,864
  7,021
  7,177
  7,335
  7,496
  7,664
  7,839
Total cash flow (excl. dividends), $m
  -41
  147
  191
  245
  307
  377
  454
  537
  624
  714
  807
  894
  987
  1,079
  1,170
  1,259
  1,346
  1,431
  1,514
  1,595
  1,675
  1,754
  1,833
  1,912
  1,991
  2,072
  2,155
  2,240
  2,327
  2,418
  2,514
Retained Cash Flow (-), $m
  27
  -272
  -360
  -466
  -588
  -725
  -875
  -1,036
  -1,206
  -1,383
  -1,563
  -1,746
  -1,928
  -2,108
  -2,286
  -2,459
  -2,629
  -2,795
  -2,957
  -3,116
  -3,272
  -3,426
  -3,580
  -3,734
  -3,890
  -4,048
  -4,209
  -4,375
  -4,547
  -4,725
  -4,910
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -125
  -169
  -221
  -280
  -347
  -420
  -499
  -582
  -668
  -757
  -852
  -941
  -1,029
  -1,116
  -1,200
  -1,283
  -1,364
  -1,443
  -1,521
  -1,597
  -1,673
  -1,748
  -1,823
  -1,899
  -1,976
  -2,055
  -2,136
  -2,219
  -2,306
  -2,397
Discount rate, %
 
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.85
  11.40
  11.97
  12.57
  13.19
  13.85
  14.55
  15.27
  16.04
  16.84
  17.68
  18.57
  19.49
  20.47
  21.49
  22.57
  23.69
  24.88
  26.12
  27.43
  28.80
  30.24
  31.75
  33.34
PV of cash for distribution, $m
 
  -116
  -144
  -171
  -196
  -217
  -233
  -243
  -246
  -242
  -232
  -218
  -198
  -176
  -153
  -129
  -106
  -86
  -67
  -52
  -39
  -28
  -20
  -14
  -9
  -6
  -4
  -2
  -1
  -1
  0
Current shareholders' claim on cash, %
  100
  66.3
  45.6
  32.4
  23.8
  18.0
  13.9
  11.0
  9.0
  7.4
  6.3
  5.4
  4.7
  4.2
  3.8
  3.4
  3.1
  2.9
  2.7
  2.6
  2.5
  2.4
  2.3
  2.2
  2.1
  2.1
  2.1
  2.0
  2.0
  2.0
  2.0

Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company. The Company markets and physically supplies refined marine fuel and lubricants to vessels in port, at sea and on rivers. As a physical supplier, the Company procures marine fuel from refineries, oil producers and other sources, and resells and delivers these fuels from its bunkering vessels to a range of end users. The Company owns and operates a fleet of approximately 50 bunkering vessels. The Company operates over 10 land-based storage facilities. The Company operates a vessel as a floating storage facility with a cargo carrying capacity of approximately 19,900 deadweight tonnage (dwt). The Company provides fueling services to various types of ocean-going and various types of coastal vessels, such as oil tankers, container ships, drybulk carriers, cruise ships, reefers, liquefied natural gas (LNG)/liquefied petroleum gas (LPG) carriers, car carriers and ferries.

FINANCIAL RATIOS  of  Aegean Marine Petroleum Network (ANW)

Valuation Ratios
P/E Ratio 3.4
Price to Sales 0
Price to Book 0.3
Price to Tangible Book
Price to Cash Flow -3.7
Price to Free Cash Flow -3
Growth Rates
Sales Growth Rate -3.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 22.2%
Cap. Spend. - 3 Yr. Gr. Rate -30.7%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 85.4%
Total Debt to Equity 138.6%
Interest Coverage 3
Management Effectiveness
Return On Assets 5%
Ret/ On Assets - 3 Yr. Avg. 3.7%
Return On Total Capital 3.8%
Ret/ On T. Cap. - 3 Yr. Avg. 2.6%
Return On Equity 8.6%
Return On Equity - 3 Yr. Avg. 5.8%
Asset Turnover 2.7
Profitability Ratios
Gross Margin 8.7%
Gross Margin - 3 Yr. Avg. 7.2%
EBITDA Margin 3.1%
EBITDA Margin - 3 Yr. Avg. 2.2%
Operating Margin 2.3%
Oper. Margin - 3 Yr. Avg. 1.7%
Pre-Tax Margin 1.4%
Pre-Tax Margin - 3 Yr. Avg. 0.9%
Net Profit Margin 1.3%
Net Profit Margin - 3 Yr. Avg. 0.8%
Effective Tax Rate 7.1%
Eff/ Tax Rate - 3 Yr. Avg. 9.5%
Payout Ratio 7.7%

ANW stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ANW stock intrinsic value calculation we used $4076 million for the last fiscal year's total revenue generated by Aegean Marine Petroleum Network. The default revenue input number comes from 2016 income statement of Aegean Marine Petroleum Network. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ANW stock valuation model: a) initial revenue growth rate of 45.9% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.1%, whose default value for ANW is calculated based on our internal credit rating of Aegean Marine Petroleum Network, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Aegean Marine Petroleum Network.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ANW stock the variable cost ratio is equal to 98.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ANW stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Aegean Marine Petroleum Network.

Corporate tax rate of 27% is the nominal tax rate for Aegean Marine Petroleum Network. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ANW stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ANW are equal to 15%.

Life of production assets of 15.8 years is the average useful life of capital assets used in Aegean Marine Petroleum Network operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ANW is equal to 15.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $590 million for Aegean Marine Petroleum Network - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 38.614 million for Aegean Marine Petroleum Network is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Aegean Marine Petroleum Network at the current share price and the inputted number of shares is $0.2 billion.

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COMPANY NEWS

▶ Why Is US Crude Oil Production at a 2-Year High?   [Aug-17-17 10:00AM  Market Realist]
▶ Aegean Marine beats 2Q profit forecasts   [Aug-10-17 09:34PM  Associated Press]
▶ LD Micro Index Reconstitution as of August 1, 2017   [Aug-01-17 09:40AM  ACCESSWIRE]
▶ Aegean Marine misses 1Q profit forecasts   [May-23-17 04:33PM  Associated Press]
▶ Top Ranked Value Stocks to Buy for May 1st   [May-01-17 09:50AM  Zacks]
▶ 4 Profitable Stocks to Buy for Marvelous Gains   [Apr-20-17 09:17AM  Zacks]
▶ New Strong Buy Stocks for April 5th   [Apr-05-17 08:52AM  Zacks]
▶ Consumers Still Feeling Pretty Good   [09:15AM  at Investopedia]
▶ What Happened in the Stock Market Today   [Dec-15-16 09:05AM  at Motley Fool]
Financial statements of ANW
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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