NYSE:STNG is probably undervalued for the fundamentals it is displaying.

Last update: Feb 20, 2024

Take a closer look at SCORPIO TANKERS INC (NYSE:STNG), a remarkable value stock uncovered by our stock screener. NYSE:STNG excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

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:

A Price/Earnings ratio of 6.70 indicates a rather cheap valuation of STNG.
70.23% of the companies in the same industry are more expensive than STNG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.18, STNG is valued rather cheaply.
The Price/Forward Earnings ratio is 6.22, which indicates a rather cheap valuation of STNG.
Based on the Price/Forward Earnings ratio, STNG is valued cheaply inside the industry as 81.86% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.51. STNG is valued rather cheaply when compared to this.
Based on the Price/Free Cash Flow ratio, STNG is valued cheaply inside the industry as 85.58% of the companies are valued more expensively.
STNG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of STNG may justify a higher PE ratio.

Evaluating Profitability: NYSE:STNG

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:STNG has earned a 7 out of 10:

STNG's Return On Assets of 12.93% is fine compared to the rest of the industry. STNG outperforms 67.91% of its industry peers.
The Return On Invested Capital of STNG (14.95%) is better than 68.84% of its industry peers.
With an excellent Profit Margin value of 40.77%, STNG belongs to the best of the industry, outperforming 80.93% of the companies in the same industry.
STNG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 52.46%, STNG belongs to the top of the industry, outperforming 85.12% of the companies in the same industry.
In the last couple of years the Operating Margin of STNG has grown nicely.
With an excellent Gross Margin value of 76.47%, STNG belongs to the best of the industry, outperforming 83.26% of the companies in the same industry.
STNG's Gross Margin has improved in the last couple of years.

Health Examination for NYSE:STNG

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:STNG scores a 5 out of 10:

With a decent Altman-Z score value of 2.40, STNG is doing good in the industry, outperforming 63.26% of the companies in the same industry.
The Debt to FCF ratio of STNG is 1.84, which is an excellent value as it means it would take STNG, only 1.84 years of fcf income to pay off all of its debts.
STNG has a Debt to FCF ratio of 1.84. This is in the better half of the industry: STNG outperforms 74.42% of its industry peers.
STNG has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.

Analyzing Growth Metrics

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 4 out of 10:

STNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 78.99% yearly.
Measured over the past years, STNG shows a quite strong growth in Revenue. The Revenue has been growing by 18.05% on average per year.
Based on estimates for the next years, STNG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.42% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.