SFL CORP LTD (SFL) Stock Fundamental Analysis
NYSE:SFL - BMG7738W1064 - Common Stock
8.15 USD
-0.14 (-1.69%)
8.15 USD
0 (0%)
Overall SFL gets a fundamental rating of 2 out of 10. We evaluated SFL against 208 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. SFL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SFL was profitable.
In the past year SFL had a positive cash flow from operations.
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 has a Return On Assets of 1.33%. This is in the lower half of the industry: SFL underperforms 60.10% of its industry peers.
With a Return On Equity value of 5.08%, SFL perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
With a Return On Invested Capital value of 6.22%, SFL perfoms like the industry average, outperforming 54.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SFL is significantly below the industry average of 23.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 5.08% | ||
| ROIC | 6.22% |
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
Looking at the Profit Margin, with a value of 6.20%, SFL is in line with its industry, outperforming 46.15% of the companies in the same industry.
SFL's Profit Margin has declined in the last couple of years.
SFL has a better Operating Margin (30.23%) than 72.12% of its industry peers.
SFL's Operating Margin has declined in the last couple of years.
The Gross Margin of SFL (60.81%) is better than 69.23% of its industry peers.
In the last couple of years the Gross Margin of SFL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.23% | ||
| PM (TTM) | 6.2% | ||
| GM | 60.81% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SFL is destroying value.
Compared to 1 year ago, SFL has more shares outstanding
The number of shares outstanding for SFL has been increased compared to 5 years ago.
The debt/assets ratio for SFL is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 2.14 is on the high side and indicates that SFL has dependencies on debt financing.
SFL has a worse Debt to Equity ratio (2.14) than 81.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.77
WACC8.11%
2.3 Liquidity
A Current Ratio of 0.45 indicates that SFL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.45, SFL is doing worse than 88.94% of the companies in the same industry.
A Quick Ratio of 0.45 indicates that SFL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.45, SFL is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
SFL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.93%.
The Earnings Per Share has been growing slightly by 6.13% on average over the past years.
SFL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.67%.
The Revenue has been growing by 14.54% on average over the past years. This is quite good.
EPS 1Y (TTM)-30.93%
EPS 3Y-8.54%
EPS 5Y6.13%
EPS Q2Q%-94.44%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y20.77%
Revenue growth 5Y14.54%
Sales Q2Q%-18.48%
3.2 Future
Based on estimates for the next years, SFL will show a decrease in Earnings Per Share. The EPS will decrease by -7.17% on average per year.
SFL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.41% yearly.
EPS Next Y-113%
EPS Next 2Y-46.46%
EPS Next 3Y-7.17%
EPS Next 5YN/A
Revenue Next Year-17.74%
Revenue Next 2Y-7.88%
Revenue Next 3Y-4.41%
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
A Price/Earnings ratio of 12.16 indicates a correct valuation of SFL.
Compared to the rest of the industry, the Price/Earnings ratio of SFL indicates a somewhat cheap valuation: SFL is cheaper than 63.94% of the companies listed in the same industry.
SFL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.03.
SFL is valuated quite expensively with a Price/Forward Earnings ratio of 28.15.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SFL indicates a slightly more expensive valuation: SFL is more expensive than 63.46% of the companies listed in the same industry.
SFL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 28.15 |
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 | 7.59 |
4.3 Compensation for Growth
A cheap valuation may be justified as SFL's earnings are expected to decrease with -7.17% in the coming years.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y-46.46%
EPS Next 3Y-7.17%
5. Dividend
5.1 Amount
SFL has a Yearly Dividend Yield of 9.76%, which is a nice return.
Compared to an average industry Dividend Yield of 6.33, SFL pays a better dividend. On top of this SFL pays more dividend than 88.94% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SFL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.76% |
5.2 History
The dividend of SFL decreases each year by -4.97%.
SFL has paid a dividend for at least 10 years, which is 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
264.92% 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.
DP264.92%
EPS Next 2Y-46.46%
EPS Next 3Y-7.17%
8.15
-0.14 (-1.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners39.23%
Inst Owner Change-1.65%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap1.18B
Analysts80
Price Target10.34 (26.87%)
Short Float %2.91%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.76% |
Yearly Dividend0.98
Dividend Growth(5Y)-4.97%
DP264.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)78.01%
Min EPS beat(2)-9.99%
Max EPS beat(2)166.01%
EPS beat(4)2
Avg EPS beat(4)1593.94%
Min EPS beat(4)-16.88%
Max EPS beat(4)6236.63%
EPS beat(8)6
Avg EPS beat(8)825.59%
EPS beat(12)9
Avg EPS beat(12)560.94%
EPS beat(16)12
Avg EPS beat(16)430.22%
Revenue beat(2)1
Avg Revenue beat(2)1.65%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)4.01%
Revenue beat(4)3
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)4.01%
Revenue beat(8)6
Avg Revenue beat(8)2.08%
Revenue beat(12)10
Avg Revenue beat(12)3.34%
Revenue beat(16)13
Avg Revenue beat(16)3.46%
PT rev (1m)-6.17%
PT rev (3m)-16.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-4%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 28.15 | ||
| P/S | 1.37 | ||
| P/FCF | N/A | ||
| P/OCF | 3.07 | ||
| P/B | 1.12 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)0.67
EY8.22%
EPS(NY)0.29
Fwd EY3.55%
FCF(TTM)-1.3
FCFYN/A
OCF(TTM)2.65
OCFY32.56%
SpS5.94
BVpS7.25
TBVpS7.25
PEG (NY)N/A
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 5.08% | ||
| ROCE | 7.88% | ||
| ROIC | 6.22% | ||
| ROICexc | 6.65% | ||
| ROICexgc | 6.65% | ||
| OM | 30.23% | ||
| PM (TTM) | 6.2% | ||
| GM | 60.81% | ||
| 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-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.46 | ||
| Cap/Depr | 235.02% | ||
| Cap/Sales | 66.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | N/A |
F-Score4
WACC8.11%
ROIC/WACC0.77
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)-30.93%
EPS 3Y-8.54%
EPS 5Y6.13%
EPS Q2Q%-94.44%
EPS Next Y-113%
EPS Next 2Y-46.46%
EPS Next 3Y-7.17%
EPS Next 5YN/A
Revenue 1Y (TTM)6.67%
Revenue growth 3Y20.77%
Revenue growth 5Y14.54%
Sales Q2Q%-18.48%
Revenue Next Year-17.74%
Revenue Next 2Y-7.88%
Revenue Next 3Y-4.41%
Revenue Next 5YN/A
EBIT growth 1Y-2.47%
EBIT growth 3Y13.64%
EBIT growth 5Y8.78%
EBIT Next Year46.76%
EBIT Next 3Y16.02%
EBIT Next 5YN/A
FCF growth 1Y-122.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.67%
OCF growth 3Y8%
OCF growth 5Y8.17%