Why the dividend investor may take a look at SCORPIO TANKERS INC (NYSE:STNG).

Our stock screener has singled out SCORPIO TANKERS INC (NYSE:STNG) as a promising choice for dividend investors. STNG not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Dividend Examination for STNG

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. STNG was assigned a score of 7 for dividend:

• With a Yearly Dividend Yield of 4.20%, STNG is a good candidate for dividend investing.
• STNG's Dividend Yield is a higher than the industry average which is at 6.82.
• STNG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
• On average, the dividend of STNG grows each year by 22.93%, which is quite nice.
• STNG has been paying a dividend for at least 10 years, so it has a reliable track record.
• 12.49% of the earnings are spent on dividend by STNG. This is a low number and sustainable payout ratio.

Understanding STNG's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. STNG has achieved a 7 out of 10:

• Looking at the Altman-Z score, with a value of 2.55, STNG is in the better half of the industry, outperforming 76.30% of the companies in the same industry.
• STNG has a debt to FCF ratio of 1.04. This is a very positive value and a sign of high solvency as it would only need 1.04 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.04, STNG belongs to the top of the industry, outperforming 88.15% of the companies in the same industry.
• A Debt/Equity ratio of 0.25 indicates that STNG is not too dependend on debt financing.
• STNG has a better Debt to Equity ratio (0.25) than 65.88% of its industry peers.
• A Current Ratio of 2.43 indicates that STNG has no problem at all paying its short term obligations.
• The Current ratio of STNG (2.43) is better than 79.15% of its industry peers.
• A Quick Ratio of 2.39 indicates that STNG has no problem at all paying its short term obligations.
• With a decent Quick ratio value of 2.39, STNG is doing good in the industry, outperforming 78.67% of the companies in the same industry.

Exploring STNG's Profitability

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. STNG has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 17.44%, STNG belongs to the top of the industry, outperforming 91.00% of the companies in the same industry.
• With an excellent Return On Equity value of 23.34%, STNG belongs to the best of the industry, outperforming 83.89% of the companies in the same industry.
• The Return On Invested Capital of STNG (12.92%) is better than 81.04% of its industry peers.
• STNG's Profit Margin of 53.76% is amongst the best of the industry. STNG outperforms 92.89% of its industry peers.
• With an excellent Operating Margin value of 47.27%, STNG belongs to the best of the industry, outperforming 89.10% of the companies in the same industry.
• In the last couple of years the Operating Margin of STNG has grown nicely.
• The Gross Margin of STNG (74.34%) is better than 84.36% of its industry peers.
• STNG's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of STNG for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. 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.