INTERNATIONAL SEAWAYS INC (INSW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INSW - MHY410531021 - Common Stock
59.32 USD
-0.34 (-0.57%)
60.48 USD
+1.16 (+1.96%)
Overall INSW gets a fundamental rating of 5 out of 10. We evaluated INSW against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While INSW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. INSW has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year INSW was profitable.
- In the past year INSW had a positive cash flow from operations.
- In multiple years INSW reported negative net income over the last 5 years.
- Of the past 5 years INSW 4 years had a positive operating cash flow.
1.2 Ratios
- INSW has a Return On Assets of 7.80%. This is amongst the best in the industry. INSW outperforms 80.68% of its industry peers.
- With a decent Return On Equity value of 11.25%, INSW is doing good in the industry, outperforming 67.63% of the companies in the same industry.
- INSW has a Return On Invested Capital of 7.29%. This is in the better half of the industry: INSW outperforms 65.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for INSW is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (7.29%) for INSW is well below the 3 year average (15.75%), which needs to be investigated, but indicates that INSW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 11.25% | ||
| ROIC | 7.29% |
ROA(3y)17.56%
ROA(5y)9.33%
ROE(3y)26.97%
ROE(5y)13.79%
ROIC(3y)15.75%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 28.24%, INSW belongs to the top of the industry, outperforming 86.47% of the companies in the same industry.
- INSW has a Operating Margin of 29.36%. This is in the better half of the industry: INSW outperforms 71.98% of its industry peers.
- In the last couple of years the Operating Margin of INSW has grown nicely.
- Looking at the Gross Margin, with a value of 59.56%, INSW is in the better half of the industry, outperforming 68.60% of the companies in the same industry.
- INSW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.36% | ||
| PM (TTM) | 28.24% | ||
| GM | 59.56% |
OM growth 3YN/A
OM growth 5Y24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y46.39%
GM growth 5Y5.85%
2. Health
2.1 Basic Checks
- INSW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for INSW has been increased compared to 1 year ago.
- The number of shares outstanding for INSW has been increased compared to 5 years ago.
- The debt/assets ratio for INSW has been reduced compared to a year ago.
2.2 Solvency
- INSW has an Altman-Z score of 2.94. This is not the best score and indicates that INSW is in the grey zone with still only limited risk for bankruptcy at the moment.
- INSW has a Altman-Z score of 2.94. This is in the better half of the industry: INSW outperforms 78.74% of its industry peers.
- INSW has a debt to FCF ratio of 10.45. This is a negative value and a sign of low solvency as INSW would need 10.45 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.45, INSW is in line with its industry, outperforming 54.11% of the companies in the same industry.
- INSW has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- INSW's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. INSW outperforms 65.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 10.45 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.85
WACC8.55%
2.3 Liquidity
- A Current Ratio of 1.75 indicates that INSW should not have too much problems paying its short term obligations.
- The Current ratio of INSW (1.75) is better than 71.98% of its industry peers.
- INSW has a Quick Ratio of 1.75. This is a normal value and indicates that INSW is financially healthy and should not expect problems in meeting its short term obligations.
- INSW's Quick ratio of 1.75 is fine compared to the rest of the industry. INSW outperforms 76.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
- The earnings per share for INSW have decreased strongly by -57.19% in the last year.
- Measured over the past years, INSW shows a very strong growth in Earnings Per Share. The EPS has been growing by 68.58% on average per year.
- INSW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.59%.
- INSW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.05% yearly.
EPS 1Y (TTM)-57.19%
EPS 3YN/A
EPS 5Y68.58%
EPS Q2Q%-26.75%
Revenue 1Y (TTM)-23.59%
Revenue growth 3Y51.72%
Revenue growth 5Y21.05%
Sales Q2Q%-12.79%
3.2 Future
- The Earnings Per Share is expected to decrease by -25.31% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -6.96% on average over the next years.
EPS Next Y-35.49%
EPS Next 2Y-20.04%
EPS Next 3Y-25.31%
EPS Next 5YN/A
Revenue Next Year-13.44%
Revenue Next 2Y-5.26%
Revenue Next 3Y-6.96%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- INSW is valuated correctly with a Price/Earnings ratio of 15.33.
- INSW's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of INSW to the average of the S&P500 Index (28.39), we can say INSW is valued slightly cheaper.
- A Price/Forward Earnings ratio of 11.96 indicates a reasonable valuation of INSW.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of INSW indicates a somewhat cheap valuation: INSW is cheaper than 71.01% of the companies listed in the same industry.
- INSW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
- INSW's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of INSW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.66 | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
- The decent profitability rating of INSW may justify a higher PE ratio.
- INSW's earnings are expected to decrease with -25.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-20.04%
EPS Next 3Y-25.31%
5. Dividend
5.1 Amount
- INSW has a yearly dividend return of 0.85%, which is pretty low.
- INSW's Dividend Yield is slightly below the industry average, which is at 3.73.
- With a Dividend Yield of 0.85, INSW pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
- INSW has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 74.10% of the earnings are spent on dividend by INSW. This is not a sustainable payout ratio.
DP74.1%
EPS Next 2Y-20.04%
EPS Next 3Y-25.31%
INTERNATIONAL SEAWAYS INC / INSW FAQ
What is the fundamental rating for INSW stock?
ChartMill assigns a fundamental rating of 5 / 10 to INSW.
Can you provide the valuation status for INTERNATIONAL SEAWAYS INC?
ChartMill assigns a valuation rating of 4 / 10 to INTERNATIONAL SEAWAYS INC (INSW). This can be considered as Fairly Valued.
What is the profitability of INSW stock?
INTERNATIONAL SEAWAYS INC (INSW) has a profitability rating of 7 / 10.
What is the valuation of INTERNATIONAL SEAWAYS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INTERNATIONAL SEAWAYS INC (INSW) is 15.33 and the Price/Book (PB) ratio is 1.52.
Is the dividend of INTERNATIONAL SEAWAYS INC sustainable?
The dividend rating of INTERNATIONAL SEAWAYS INC (INSW) is 1 / 10 and the dividend payout ratio is 74.1%.