NYSE:STNG is an undervalued gem with solid fundamentals.

Last update: Nov 8, 2023

Take a closer look at SCORPIO TANKERS INC (NYSE:STNG), a remarkable value stock uncovered by our stock screener. NYSE:STNG excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Evaluating Valuation: NYSE:STNG

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:STNG, the assigned 8 reflects its valuation:

STNG is valuated cheaply with a Price/Earnings ratio of 3.76.
85.91% of the companies in the same industry are more expensive than STNG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 23.44. STNG is valued rather cheaply when compared to this.
STNG is valuated cheaply with a Price/Forward Earnings ratio of 5.68.
Based on the Price/Forward Earnings ratio, STNG is valued cheaper than 83.64% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STNG to the average of the S&P500 Index (18.82), we can say STNG is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, STNG is valued a bit cheaper than 71.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STNG is valued cheaper than 93.18% of the companies in the same industry.
The decent profitability rating of STNG may justify a higher PE ratio.

Profitability Analysis for NYSE:STNG

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:STNG has achieved a 7:

STNG's Return On Assets of 19.82% is fine compared to the rest of the industry. STNG outperforms 80.00% of its industry peers.
STNG has a better Return On Equity (35.32%) than 73.64% of its industry peers.
STNG has a better Return On Invested Capital (20.50%) than 78.64% of its industry peers.
With an excellent Profit Margin value of 50.44%, STNG belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
STNG has a better Operating Margin (59.00%) than 88.18% of its industry peers.
STNG's Operating Margin has improved in the last couple of years.
STNG has a better Gross Margin (81.47%) than 85.45% of its industry peers.
In the last couple of years the Gross Margin of STNG has grown nicely.

A Closer Look at Health for NYSE:STNG

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:STNG has earned a 5 out of 10:

STNG has a debt to FCF ratio of 1.60. This is a very positive value and a sign of high solvency as it would only need 1.60 years to pay back of all of its debts.
The Debt to FCF ratio of STNG (1.60) is better than 75.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for STNG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

What does the Growth looks like for NYSE:STNG

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:STNG was assigned a score of 4 for growth:

The Earnings Per Share has grown by an impressive 2072.06% over the past year.
STNG shows a strong growth in Revenue. In the last year, the Revenue has grown by 100.58%.
The Revenue has been growing by 24.97% on average over the past years. This is a very strong growth!

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of STNG

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.