SCORPIO TANKERS INC (STNG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STNG - MHY7542C1306 - Common Stock
61.8366 USD
-0.66 (-1.06%)
Overall STNG gets a fundamental rating of 6 out of 10. We evaluated STNG against 207 industry peers in the Oil, Gas & Consumable Fuels industry. STNG gets an excellent profitability rating and is at the same time showing great financial health properties. STNG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year STNG was profitable.
- In the past year STNG had a positive cash flow from operations.
- Of the past 5 years STNG 4 years were profitable.
- Each year in the past 5 years STNG had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.07%, STNG is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- STNG's Return On Equity of 9.26% is fine compared to the rest of the industry. STNG outperforms 61.84% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.46%, STNG is in line with its industry, outperforming 47.83% of the companies in the same industry.
- STNG had an Average Return On Invested Capital over the past 3 years of 14.78%. This is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (5.46%) for STNG is well below the 3 year average (14.78%), which needs to be investigated, but indicates that STNG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 9.26% | ||
| ROIC | 5.46% |
ROA(3y)14.79%
ROA(5y)8.3%
ROE(3y)23.39%
ROE(5y)12.39%
ROIC(3y)14.78%
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 32.01%, STNG belongs to the best of the industry, outperforming 89.37% of the companies in the same industry.
- With a decent Operating Margin value of 29.72%, STNG is doing good in the industry, outperforming 74.40% of the companies in the same industry.
- In the last couple of years the Operating Margin of STNG has grown nicely.
- With a decent Gross Margin value of 66.89%, STNG is doing good in the industry, outperforming 73.91% of the companies in the same industry.
- STNG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.72% | ||
| PM (TTM) | 32.01% | ||
| GM | 66.89% |
OM growth 3YN/A
OM growth 5Y20.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.99%
GM growth 5Y5.25%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STNG is creating value.
- Compared to 1 year ago, STNG has less shares outstanding
- Compared to 5 years ago, STNG has less shares outstanding
- STNG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.16 indicates that STNG is not in any danger for bankruptcy at the moment.
- STNG has a better Altman-Z score (3.16) than 82.61% of its industry peers.
- STNG has a debt to FCF ratio of 2.01. This is a good value and a sign of high solvency as STNG would need 2.01 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 2.01, STNG belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- STNG has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.25, STNG is doing good in the industry, outperforming 68.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.67
WACC8.17%
2.3 Liquidity
- A Current Ratio of 4.81 indicates that STNG has no problem at all paying its short term obligations.
- STNG's Current ratio of 4.81 is amongst the best of the industry. STNG outperforms 87.92% of its industry peers.
- A Quick Ratio of 4.75 indicates that STNG has no problem at all paying its short term obligations.
- STNG has a better Quick ratio (4.75) than 87.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.81 | ||
| Quick Ratio | 4.75 |
3. Growth
3.1 Past
- STNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.22%.
- STNG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -35.37%.
- STNG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.05% yearly.
EPS 1Y (TTM)-62.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-14.86%
Revenue 1Y (TTM)-35.37%
Revenue growth 3Y32%
Revenue growth 5Y12.05%
Sales Q2Q%-9.94%
3.2 Future
- Based on estimates for the next years, STNG will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.93% on average per year.
- Based on estimates for the next years, STNG will show a very negative growth in Revenue. The Revenue will decrease by -11.28% on average per year.
EPS Next Y-44.39%
EPS Next 2Y-23.49%
EPS Next 3Y-16.93%
EPS Next 5YN/A
Revenue Next Year-26.54%
Revenue Next 2Y-15.28%
Revenue Next 3Y-11.28%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.56, STNG is valued correctly.
- Based on the Price/Earnings ratio, STNG is valued a bit cheaper than 64.73% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, STNG is valued rather cheaply.
- STNG is valuated reasonably with a Price/Forward Earnings ratio of 10.62.
- STNG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STNG is cheaper than 77.29% of the companies in the same industry.
- STNG is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
- STNG's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, STNG is valued cheaper than 87.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.28 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
- STNG has a very decent profitability rating, which may justify a higher PE ratio.
- STNG's earnings are expected to decrease with -16.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.49%
EPS Next 3Y-16.93%
5. Dividend
5.1 Amount
- STNG has a Yearly Dividend Yield of 2.94%.
- Compared to an average industry Dividend Yield of 3.73, STNG has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, STNG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
- The dividend of STNG is nicely growing with an annual growth rate of 33.06%!
- STNG has paid a dividend for at least 10 years, which is a reliable track record.
- STNG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)33.06%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
- 28.37% of the earnings are spent on dividend by STNG. This is a low number and sustainable payout ratio.
DP28.37%
EPS Next 2Y-23.49%
EPS Next 3Y-16.93%
SCORPIO TANKERS INC / STNG FAQ
What is the fundamental rating for STNG stock?
ChartMill assigns a fundamental rating of 6 / 10 to STNG.
What is the valuation status for STNG stock?
ChartMill assigns a valuation rating of 6 / 10 to SCORPIO TANKERS INC (STNG). This can be considered as Fairly Valued.
How profitable is SCORPIO TANKERS INC (STNG) stock?
SCORPIO TANKERS INC (STNG) has a profitability rating of 7 / 10.
Can you provide the financial health for STNG stock?
The financial health rating of SCORPIO TANKERS INC (STNG) is 9 / 10.
What is the earnings growth outlook for SCORPIO TANKERS INC?
The Earnings per Share (EPS) of SCORPIO TANKERS INC (STNG) is expected to decline by -44.39% in the next year.