SFL CORP LTD (SFL) Stock Fundamental Analysis
NYSE:SFL - New York Stock Exchange, Inc. - BMG7738W1064 - Common Stock - Currency: USD
Taking everything into account, SFL scores 3 out of 10 in our fundamental rating. SFL was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. SFL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, SFL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SFL had positive earnings in the past year.
SFL had a positive operating cash flow in the past year.
SFL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SFL had a positive operating cash flow.
1.2 Ratios
SFL's Return On Assets of 3.18% is in line compared to the rest of the industry. SFL outperforms 46.95% of its industry peers.
The Return On Equity of SFL (11.58%) is better than 60.56% of its industry peers.
The Return On Invested Capital of SFL (7.26%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SFL is significantly below the industry average of 25.69%.
The last Return On Invested Capital (7.26%) for SFL is above the 3 year average (7.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 11.58% | ||
| ROIC | 7.26% |
ROA(3y)3.56%
ROA(5y)1.64%
ROE(3y)12.75%
ROE(5y)5.35%
ROIC(3y)7.06%
ROIC(5y)6.51%
1.3 Margins
SFL has a Profit Margin of 14.45%. This is in the better half of the industry: SFL outperforms 61.50% of its industry peers.
SFL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 33.32%, SFL is in the better half of the industry, outperforming 72.30% of the companies in the same industry.
In the last couple of years the Operating Margin of SFL has declined.
SFL has a better Gross Margin (62.04%) than 66.20% of its industry peers.
In the last couple of years the Gross Margin of SFL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.32% | ||
| PM (TTM) | 14.45% | ||
| GM | 62.04% |
OM growth 3Y-5.91%
OM growth 5Y-5.02%
PM growth 3Y-23.3%
PM growth 5Y-5.77%
GM growth 3Y-3.7%
GM growth 5Y-2.58%
2. Health
2.1 Basic Checks
SFL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SFL has been increased compared to 1 year ago.
Compared to 5 years ago, SFL has more shares outstanding
The debt/assets ratio for SFL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.56, we must say that SFL is in the distress zone and has some risk of bankruptcy.
SFL's Altman-Z score of 0.56 is on the low side compared to the rest of the industry. SFL is outperformed by 63.38% of its industry peers.
SFL has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
SFL has a worse Debt to Equity ratio (1.91) than 80.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.56 |
ROIC/WACC0.89
WACC8.16%
2.3 Liquidity
SFL has a Current Ratio of 0.38. This is a bad value and indicates that SFL is not financially healthy enough and could expect problems in meeting its short term obligations.
SFL has a Current ratio of 0.38. This is amonst the worse of the industry: SFL underperforms 90.61% of its industry peers.
A Quick Ratio of 0.36 indicates that SFL may have some problems paying its short term obligations.
The Quick ratio of SFL (0.36) is worse than 88.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.28% over the past year.
SFL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.13% yearly.
SFL shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.21%.
Measured over the past years, SFL shows a quite strong growth in Revenue. The Revenue has been growing by 14.54% on average per year.
EPS 1Y (TTM)40.28%
EPS 3Y-8.54%
EPS 5Y6.13%
EPS Q2Q%-40%
Revenue 1Y (TTM)20.21%
Revenue growth 3Y20.77%
Revenue growth 5Y14.54%
Sales Q2Q%9.32%
3.2 Future
SFL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -41.91% yearly.
SFL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.13% yearly.
EPS Next Y-102.67%
EPS Next 2Y-41.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.79%
Revenue Next 2Y-5.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 8.21, which indicates a very decent valuation of SFL.
SFL's Price/Earnings ratio is a bit cheaper when compared to the industry. SFL is cheaper than 75.12% of the companies in the same industry.
SFL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.12.
SFL is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SFL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
A cheap valuation may be justified as SFL's earnings are expected to decrease with -41.91% in the coming years.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y-41.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.24%, SFL is a good candidate for dividend investing.
In the last 3 months the price of SFL has falen by -23.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SFL's Dividend Yield is rather good when compared to the industry average which is at 7.32. SFL pays more dividend than 93.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SFL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.24% |
5.2 History
The dividend of SFL decreases each year by -4.97%.
SFL has been paying a dividend for at least 10 years, so it has a reliable track record.
SFL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-4.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
106.00% of the earnings are spent on dividend by SFL. This is not a sustainable payout ratio.
SFL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP106%
EPS Next 2Y-41.91%
EPS Next 3YN/A
NYSE:SFL (5/9/2025, 2:04:00 PM)
8.295
+0.02 (+0.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.23%
Inst Owner Change1.21%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap1.21B
Analysts80
Price Target12.31 (48.4%)
Short Float %3.48%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.24% |
Yearly Dividend0.98
Dividend Growth(5Y)-4.97%
DP106%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.44%
Min EPS beat(2)-16.88%
Max EPS beat(2)-9.99%
EPS beat(4)2
Avg EPS beat(4)1561.07%
Min EPS beat(4)-16.88%
Max EPS beat(4)6236.63%
EPS beat(8)5
Avg EPS beat(8)801.74%
EPS beat(12)9
Avg EPS beat(12)551.43%
EPS beat(16)12
Avg EPS beat(16)425.07%
Revenue beat(2)2
Avg Revenue beat(2)3.27%
Min Revenue beat(2)2.53%
Max Revenue beat(2)4.01%
Revenue beat(4)4
Avg Revenue beat(4)3.87%
Min Revenue beat(4)2.53%
Max Revenue beat(4)6.18%
Revenue beat(8)7
Avg Revenue beat(8)2.43%
Revenue beat(12)11
Avg Revenue beat(12)4.13%
Revenue beat(16)14
Avg Revenue beat(16)3.57%
PT rev (1m)0%
PT rev (3m)-9.05%
EPS NQ rev (1m)-500%
EPS NQ rev (3m)-133.33%
EPS NY rev (1m)-125.4%
EPS NY rev (3m)-104.98%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-5.89%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-8.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | N/A | ||
| P/S | 1.34 | ||
| P/FCF | N/A | ||
| P/OCF | 3.27 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)1.01
EY12.18%
EPS(NY)-0.03
Fwd EYN/A
FCF(TTM)-1.89
FCFYN/A
OCF(TTM)2.54
OCFY30.6%
SpS6.21
BVpS7.74
TBVpS7.74
PEG (NY)N/A
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 11.58% | ||
| ROCE | 9.19% | ||
| ROIC | 7.26% | ||
| ROICexc | 7.66% | ||
| ROICexgc | 7.66% | ||
| OM | 33.32% | ||
| PM (TTM) | 14.45% | ||
| GM | 62.04% | ||
| FCFM | N/A |
ROA(3y)3.56%
ROA(5y)1.64%
ROE(3y)12.75%
ROE(5y)5.35%
ROIC(3y)7.06%
ROIC(5y)6.51%
ROICexc(3y)7.56%
ROICexc(5y)7%
ROICexgc(3y)7.56%
ROICexgc(5y)7%
ROCE(3y)8.94%
ROCE(5y)8.24%
ROICexcg growth 3Y10.96%
ROICexcg growth 5Y9.74%
ROICexc growth 3Y10.96%
ROICexc growth 5Y9.74%
OM growth 3Y-5.91%
OM growth 5Y-5.02%
PM growth 3Y-23.3%
PM growth 5Y-5.77%
GM growth 3Y-3.7%
GM growth 5Y-2.58%
F-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 269.61% | ||
| Cap/Sales | 71.3% | ||
| Interest Coverage | 1.87 | ||
| Cash Conversion | 68.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 0.56 |
F-Score6
WACC8.16%
ROIC/WACC0.89
Cap/Depr(3y)237.97%
Cap/Depr(5y)236.76%
Cap/Sales(3y)65.44%
Cap/Sales(5y)64.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40.28%
EPS 3Y-8.54%
EPS 5Y6.13%
EPS Q2Q%-40%
EPS Next Y-102.67%
EPS Next 2Y-41.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)20.21%
Revenue growth 3Y20.77%
Revenue growth 5Y14.54%
Sales Q2Q%9.32%
Revenue Next Year-14.79%
Revenue Next 2Y-5.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y31.64%
EBIT growth 3Y13.64%
EBIT growth 5Y8.78%
EBIT Next Year46.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-449.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.8%
OCF growth 3Y8%
OCF growth 5Y8.17%