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NYSE:STNG: good value for what you're paying.

By Mill Chart

Last update: Jan 12, 2024

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.

Assessing Valuation Metrics 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 4.31, which indicates a rather cheap valuation of STNG.
  • Based on the Price/Earnings ratio, STNG is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • STNG is valuated cheaply when we compare the Price/Earnings ratio to 25.87, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 5.43, 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 82.87% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 20.79, STNG is valued rather cheaply.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STNG indicates a somewhat cheap valuation: STNG is cheaper than 65.74% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of STNG indicates a rather cheap valuation: STNG is cheaper than 92.13% of the companies listed in the same industry.
  • STNG has a very decent profitability rating, which may justify a higher PE ratio.

A Closer Look at Profitability for 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's Return On Assets of 19.82% is fine compared to the rest of the industry. STNG outperforms 79.63% of its industry peers.
  • Looking at the Return On Equity, with a value of 35.32%, STNG is in the better half of the industry, outperforming 76.85% of the companies in the same industry.
  • STNG has a Return On Invested Capital of 20.50%. This is in the better half of the industry: STNG outperforms 79.63% of its industry peers.
  • The Profit Margin of STNG (50.44%) is better than 85.65% of its industry peers.
  • Looking at the Operating Margin, with a value of 59.00%, STNG belongs to the top of the industry, outperforming 88.43% of the companies in the same industry.
  • In the last couple of years the Operating Margin of STNG has grown nicely.
  • Looking at the Gross Margin, with a value of 81.47%, STNG belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • STNG's Gross Margin has improved in the last couple of years.

A Closer Look at Health for NYSE:STNG

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:STNG was assigned a score of 6 for health:

  • STNG has a better Altman-Z score (2.38) than 62.50% of its industry peers.
  • 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 better Debt to FCF ratio (1.60) than 75.46% 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.

Unpacking NYSE:STNG's Growth Rating

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 5 for growth:

  • STNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2072.06%, which is quite impressive.
  • 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.

Our latest full fundamental report of STNG contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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SCORPIO TANKERS INC

NYSE:STNG (5/30/2024, 8:35:03 AM)

80.66

+0.09 (+0.11%)

STNG News

News Image10 days ago - Scorpio Tankers Inc.Scorpio Tankers Inc. Announces Agreement for a $223.6 Million Prepayment under its 2023 $1.0 Billion Credit Facility

MONACO, May 20, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (

News Image16 days ago - Market News VideoNotable Tuesday Option Activity: BOOT, RUN, STNG
News Image21 days ago - InvestorPlaceSTNG Stock Earnings: Scorpio Tankers Beats EPS, Beats Revenue for Q1 2024

STNG stock results show that Scorpio Tankers beat analyst estimates for earnings per share and beat on revenue for the first quarter of 2024.

News Image21 days ago - Scorpio Tankers Inc.Scorpio Tankers Inc. Announces Financial Results for the First Quarter of 2024 and Declaration of a Dividend

MONACO, May 09, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) (

News Image24 days ago - Market News VideoNotable Monday Option Activity: NET, WGO, STNG
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Investors should keep an eye on these three global oil stocks to buy, if crude oil prices rise as a result of increasing conflict.

News Imagea month ago - Market News VideoNotable Friday Option Activity: AMC, STNG, SLCA
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News Imagea month ago - Scorpio Tankers Inc.Scorpio Tankers Inc. Announces That on May 9, 2024, the Company Plans to Issue Its First Quarter 2024 Results and Have a Conference Call

MONACO, April 15, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (

News Image2 months ago - Market News VideoNotable Monday Option Activity: CLF, STNG, APO
News Image2 months ago - Scorpio Tankers Inc.Scorpio Tankers Inc. Announces Availability of 2023 Annual Report on Form 20-F

MONACO, March 22, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) (“Scorpio Tankers” or the “Company”) announced today that its Annual Report...

News Image2 months ago - Scorpio Tankers Inc.Scorpio Tankers Inc. Announces Agreements to Sell Two MR Product Tankers

MONACO, March 20, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced today that it has entered...

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