INTL FCStone (INTL)
Double digit growth in Commercial Hedging and Securities segments led INTL to deliver better than expected performance. We are maintaining our last BUY rating and $36.00 price target, which will be updated following our review of the 10-Q.
52-Week Range | $24.27 - $36.97 | LT Debt (million) | $257.1 |
Shares Outstanding | 18.4 million | LT Debt/Equity | 61.9% |
Insider/Institutional | 9.78% /75.97% | ROE (TTM) | 14.5% |
Public Float | 14.7 million | Book Value/Share | $22.68 |
Market Capitalization | $543.8 million | Daily Volume (3M) | 78,269 |
FYE SEP | 2015A | 2016E | 2017E | ||
EPS($) | ACTUAL | CURRENT | PREVIOUS | CURRENT | PREVIOUS |
Q1 Dec | $0.49A | 0.46A | 0.46A | 0.67E | 0.56E |
Q2 Mar | $0.68A | 0.76A | 0.76A | 0.86E | 0.73E |
Q3 Jun | $0.62A | 0.78A | 0.52E | 0.74E | 0.65E |
Q4 Sep | $1.09A | 1.10E | 0.94E | 1.29E | 1.13E |
Year* | $2.88A | $3.10E | $2.71E | $3.56E | $3.07E |
P/E Ratio | 10.2x | 9.5x | 8.3x | ||
Change | 188.8% | 7.7% | 14.8% |
FYE SEP | 2015A | 2016E | 2017E | ||
Revenue ($ mil.) | ACTUAL | CURRENT | PREVIOUS | CURRENT | PREVIOUS |
Q1 Dec | $137.5A | $151.3A | $151.3A | $170.8E | $168.1E |
Q2 Mar | 156.5A | $166.1A | $166.1A | $177.7E | $175.0E |
Q3 Jun | 151.6A | $175.0A | $155.1E | $183.3E | $178.0E |
Q4 Sep | 178.7A | $185.6E | $182.9E | $213.9E | $211.3E |
Year | 624.3A | $678.0E | $655.4E | $745.8E | $732.5E |
Change | 27.2% | 8.6% | 10.0% |
- Numbers may not add up due to rounding.
Q3:16 Highlights
- Operating revenues surged 15.4% to $175.0 million in Q3:16 from $151.6 million in the year earlier quarter, primarily attributable to the robust growth in the operating revenues of Commercial Hedging and Securities segments, which rose 16% and 14% respectively.
- Revenues of commercial hedging segment, a principle contributor to the company's overall revenue, grew 16% to $71.9 million for the quarter from $62.2 million as a result of improved market conditions in the domestic grain markets and growth in London operations.
- Securities segment revenues jumped 14% to $41.6 million in Q3:16 from $36.5 million in the same quarter of previous year as the segment witnessed a strong performance in the debt trading markets, both domestic and international operations.
- Compensation expense, which historically accounts for ~45% of total operating costs, grew 10.5% to $69.4 million and represented 47.6% of total costs for the quarter.
- Diluted earnings per share surged 27.3% to $0.78 from $0.62, due to solid top-line growth discussed above.
- Annualized ROE for the quarter stood at 14.1% and 12.4% YTD, below the company's long term internal target of 15%.