SCORPIO TANKERS INC (STNG) Stock Fundamental Analysis
NYSE:STNG - New York Stock Exchange, Inc. - MHY7542C1306 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to STNG. STNG was compared to 211 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 bad growth rate and is valued cheaply. This makes STNG very considerable for value investing!
1. Profitability
1.1 Basic Checks
STNG had positive earnings in the past year.
In the past year STNG had a positive cash flow from operations.
Of the past 5 years STNG 4 years were profitable.
STNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STNG has a better Return On Assets (12.91%) than 89.57% of its industry peers.
STNG's Return On Equity of 17.56% is fine compared to the rest of the industry. STNG outperforms 76.78% of its industry peers.
With a decent Return On Invested Capital value of 8.63%, STNG is doing good in the industry, outperforming 69.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STNG is significantly below the industry average of 23.70%.
The last Return On Invested Capital (8.63%) 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 | 12.91% | ||
| ROE | 17.56% | ||
| ROIC | 8.63% |
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
Looking at the Profit Margin, with a value of 48.08%, STNG belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
STNG's Operating Margin of 38.89% is amongst the best of the industry. STNG outperforms 84.36% of its industry peers.
In the last couple of years the Operating Margin of STNG has grown nicely.
Looking at the Gross Margin, with a value of 70.78%, STNG belongs to the top of the industry, outperforming 80.57% of the companies in the same industry.
STNG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.89% | ||
| PM (TTM) | 48.08% | ||
| GM | 70.78% |
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
STNG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
STNG has less shares outstanding than it did 1 year ago.
STNG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, STNG has an improved debt to assets ratio.
2.2 Solvency
STNG has an Altman-Z score of 2.44. 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 a decent Altman-Z score value of 2.44, STNG is doing good in the industry, outperforming 74.88% of the companies in the same industry.
STNG has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.46, STNG belongs to the best of the industry, outperforming 85.78% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that STNG is not too dependend on debt financing.
STNG's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. STNG outperforms 63.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.97
WACC8.88%
2.3 Liquidity
A Current Ratio of 4.20 indicates that STNG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.20, STNG belongs to the top of the industry, outperforming 90.05% of the companies in the same industry.
A Quick Ratio of 4.12 indicates that STNG has no problem at all paying its short term obligations.
STNG has a better Quick ratio (4.12) than 91.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.12 |
3. Growth
3.1 Past
STNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.50%.
Looking at the last year, STNG shows a very negative growth in Revenue. The Revenue has decreased by -20.88% in the last year.
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)-36.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-74.06%
Revenue 1Y (TTM)-20.88%
Revenue growth 3Y32%
Revenue growth 5Y12.05%
Sales Q2Q%-45.32%
3.2 Future
STNG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.16% yearly.
STNG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.60% yearly.
EPS Next Y-48.57%
EPS Next 2Y-24.31%
EPS Next 3Y-2.16%
EPS Next 5YN/A
Revenue Next Year-26.8%
Revenue Next 2Y-13.71%
Revenue Next 3Y-6.6%
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 6.06, the valuation of STNG can be described as very cheap.
STNG's Price/Earnings ratio is rather cheap when compared to the industry. STNG is cheaper than 86.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. STNG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.45, the valuation of STNG can be described as very cheap.
Based on the Price/Forward Earnings ratio, STNG is valued cheaply inside the industry as 82.46% of the companies are valued more expensively.
STNG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.06 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STNG indicates a somewhat cheap valuation: STNG is cheaper than 77.25% of the companies listed in the same industry.
STNG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STNG is cheaper than 92.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.25 | ||
| EV/EBITDA | 4.16 |
4.3 Compensation for Growth
STNG has an outstanding profitability rating, which may justify a higher PE ratio.
STNG's earnings are expected to decrease with -2.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.31%
EPS Next 3Y-2.16%
5. Dividend
5.1 Amount
STNG has a Yearly Dividend Yield of 3.77%.
Compared to an average industry Dividend Yield of 6.66, STNG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, STNG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
The dividend of STNG is nicely growing with an annual growth rate of 33.06%!
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
STNG pays out 16.04% of its income as dividend. This is a sustainable payout ratio.
DP16.04%
EPS Next 2Y-24.31%
EPS Next 3Y-2.16%
42.45
+0.6 (+1.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.27%
Inst Owner Change3.43%
Ins Owners5.89%
Ins Owner ChangeN/A
Market Cap2.17B
Analysts84.44
Price Target68.54 (61.46%)
Short Float %5.35%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend1.62
Dividend Growth(5Y)33.06%
DP16.04%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.77%
Min EPS beat(2)-34.08%
Max EPS beat(2)37.62%
EPS beat(4)2
Avg EPS beat(4)-3.28%
Min EPS beat(4)-34.08%
Max EPS beat(4)37.62%
EPS beat(8)5
Avg EPS beat(8)1.68%
EPS beat(12)7
Avg EPS beat(12)2.69%
EPS beat(16)9
Avg EPS beat(16)5.27%
Revenue beat(2)1
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-8.77%
Max Revenue beat(2)4.17%
Revenue beat(4)2
Avg Revenue beat(4)-3.15%
Min Revenue beat(4)-9.66%
Max Revenue beat(4)4.17%
Revenue beat(8)4
Avg Revenue beat(8)-2.23%
Revenue beat(12)7
Avg Revenue beat(12)0.81%
Revenue beat(16)8
Avg Revenue beat(16)0%
PT rev (1m)3.67%
PT rev (3m)-5.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.89%
EPS NY rev (1m)1.41%
EPS NY rev (3m)-20.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.3%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)-5.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.06 | ||
| Fwd PE | 7.45 | ||
| P/S | 2.03 | ||
| P/FCF | 3.25 | ||
| P/OCF | 3.25 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 4.16 |
EPS(TTM)7.01
EY16.51%
EPS(NY)5.7
Fwd EY13.43%
FCF(TTM)13.07
FCFY30.79%
OCF(TTM)13.07
OCFY30.79%
SpS20.91
BVpS57.25
TBVpS57.09
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 17.56% | ||
| ROCE | 10.92% | ||
| ROIC | 8.63% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 10.07% | ||
| OM | 38.89% | ||
| PM (TTM) | 48.08% | ||
| GM | 70.78% | ||
| FCFM | 62.53% |
ROA(3y)14.79%
ROA(5y)8.3%
ROE(3y)23.39%
ROE(5y)12.39%
ROIC(3y)14.78%
ROIC(5y)N/A
ROICexc(3y)17.09%
ROICexc(5y)N/A
ROICexgc(3y)17.14%
ROICexgc(5y)N/A
ROCE(3y)18.7%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y44.72%
ROICexc growth 3YN/A
ROICexc growth 5Y44.72%
OM growth 3YN/A
OM growth 5Y20.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.99%
GM growth 5Y5.25%
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.73% | ||
| Profit Quality | 130.06% | ||
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.12 | ||
| Altman-Z | 2.44 |
F-Score6
WACC8.88%
ROIC/WACC0.97
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)134.02%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-74.06%
EPS Next Y-48.57%
EPS Next 2Y-24.31%
EPS Next 3Y-2.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.88%
Revenue growth 3Y32%
Revenue growth 5Y12.05%
Sales Q2Q%-45.32%
Revenue Next Year-26.8%
Revenue Next 2Y-13.71%
Revenue Next 3Y-6.6%
Revenue Next 5YN/A
EBIT growth 1Y-41.25%
EBIT growth 3YN/A
EBIT growth 5Y35.24%
EBIT Next Year-24.14%
EBIT Next 3Y-3.27%
EBIT Next 5YN/A
FCF growth 1Y-35.78%
FCF growth 3Y131.4%
FCF growth 5Y31.54%
OCF growth 1Y-35.89%
OCF growth 3Y124.12%
OCF growth 5Y31.54%