SCORPIO TANKERS INC (STNG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STNG - MHY7542C1306 - Common Stock
58.53 USD
+1.44 (+2.52%)
58.53 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to STNG. STNG was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making STNG a very profitable company, without any liquidiy or solvency issues. STNG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- STNG had positive earnings in the past year.
- STNG had a positive operating cash flow in the past year.
- STNG had positive earnings in 4 of the past 5 years.
- In the past 5 years STNG always reported a positive cash flow from operatings.
1.2 Ratios
- STNG has a better Return On Assets (7.07%) than 77.78% of its industry peers.
- STNG has a better Return On Equity (9.26%) than 61.84% of its industry peers.
- STNG has a Return On Invested Capital (5.46%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for STNG 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
- The Profit Margin of STNG (32.01%) is better than 89.37% of its industry peers.
- 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.
- STNG's Operating Margin has improved in the last couple of years.
- STNG has a Gross Margin of 66.89%. This is in the better half of the industry: STNG outperforms 73.91% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STNG is creating some value.
- The number of shares outstanding for STNG has been reduced compared to 1 year ago.
- STNG has less shares outstanding than it did 5 years ago.
- STNG has a better debt/assets ratio than last year.
2.2 Solvency
- STNG has an Altman-Z score of 2.98. This is not the best score and indicates that STNG is in the grey zone with still only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.98, STNG belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
- The Debt to FCF ratio of STNG is 2.01, which is a good value as it means it would take STNG, 2.01 years of fcf income to pay off all of its debts.
- STNG has a Debt to FCF ratio of 2.01. This is amongst the best in the industry. STNG outperforms 82.61% of its industry peers.
- STNG has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- STNG has a better Debt to Equity ratio (0.25) than 68.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.66
WACC8.24%
2.3 Liquidity
- A Current Ratio of 4.81 indicates that STNG has no problem at all paying its short term obligations.
- STNG has a better Current ratio (4.81) than 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%.
- Looking at the last year, STNG shows a very negative growth in Revenue. The Revenue has decreased by -35.37% in the last year.
- Measured over the past years, STNG shows a quite strong growth in Revenue. The Revenue has been growing by 12.05% on average per year.
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 -12.37% 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 -11.12% on average per year.
EPS Next Y-44.03%
EPS Next 2Y-19.83%
EPS Next 3Y-12.37%
EPS Next 5YN/A
Revenue Next Year-26.66%
Revenue Next 2Y-15.13%
Revenue Next 3Y-11.12%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.84, STNG is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of STNG indicates a somewhat cheap valuation: STNG is cheaper than 69.57% of the companies listed in the same industry.
- STNG is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 9.15, the valuation of STNG can be described as reasonable.
- 85.02% of the companies in the same industry are more expensive than STNG, based on the Price/Forward Earnings ratio.
- STNG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
- STNG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STNG is cheaper than 63.77% of the companies in the same industry.
- 89.37% of the companies in the same industry are more expensive than STNG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.89 | ||
| EV/EBITDA | 7.04 |
4.3 Compensation for Growth
- The decent profitability rating of STNG may justify a higher PE ratio.
- A cheap valuation may be justified as STNG's earnings are expected to decrease with -12.37% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.83%
EPS Next 3Y-12.37%
5. Dividend
5.1 Amount
- STNG has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.75, 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
- On average, the dividend of STNG grows each year by 33.06%, which is quite nice.
- STNG has been paying a dividend for at least 10 years, so it has 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-19.83%
EPS Next 3Y-12.37%
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 -44.03% in the next year.