NYSE:STNG, an undervalued stock with good fundamentals.

Last update: Dec 22, 2023

Our stock screening tool has pinpointed SCORPIO TANKERS INC (NYSE:STNG) as an undervalued stock. NYSE:STNG maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Analysis for 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:

The Price/Earnings ratio is 4.33, which indicates a rather cheap valuation of STNG.
STNG's Price/Earnings ratio is rather cheap when compared to the industry. STNG is cheaper than 83.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of STNG to the average of the S&P500 Index (25.63), we can say STNG is valued rather cheaply.
STNG is valuated cheaply with a Price/Forward Earnings ratio of 5.45.
STNG's Price/Forward Earnings ratio is rather cheap when compared to the industry. STNG is cheaper than 84.33% of the companies in the same industry.
STNG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.19.
Based on the Enterprise Value to EBITDA ratio, STNG is valued a bit cheaper than the industry average as 68.20% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STNG indicates a rather cheap valuation: STNG is cheaper than 91.24% of the companies listed in the same industry.
The decent profitability rating of STNG may justify a higher PE ratio.

Profitability Insights: NYSE:STNG

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:STNG, the assigned 7 is noteworthy for profitability:

STNG has a Return On Assets of 19.82%. This is amongst the best in the industry. STNG outperforms 80.18% of its industry peers.
STNG has a better Return On Equity (35.32%) than 77.42% of its industry peers.
STNG has a better Return On Invested Capital (20.50%) than 79.26% of its industry peers.
Looking at the Profit Margin, with a value of 50.44%, STNG belongs to the top of the industry, outperforming 86.18% of the companies in the same industry.
With an excellent Operating Margin value of 59.00%, STNG belongs to the best of the industry, outperforming 88.48% of the companies in the same industry.
STNG's Operating Margin has improved in the last couple of years.
STNG has a Gross Margin of 81.47%. This is amongst the best in the industry. STNG outperforms 87.10% of its industry peers.
In the last couple of years the Gross Margin of STNG has grown nicely.

How do we evaluate the Health for NYSE:STNG?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:STNG, the assigned 6 for health provides valuable insights:

With a decent Altman-Z score value of 2.39, STNG is doing good in the industry, outperforming 60.83% of the companies in the same industry.
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.
STNG has a Debt to FCF ratio of 1.60. This is in the better half of the industry: STNG outperforms 75.58% of its industry peers.
Although STNG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

A Closer Look at Growth for NYSE:STNG

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:STNG has received a 5 out of 10:

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!

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

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.