SFL CORP LTD (SFL)
BMG7738W1064 - Common Stock
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. There are concerns on the financial health of SFL while its profitability can be described as average. SFL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years SFL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SFL (2.25%) is worse than 71.83% of its industry peers.
SFL's Return On Equity of 8.07% is on the low side compared to the rest of the industry. SFL is outperformed by 64.79% of its industry peers.
The Return On Invested Capital of SFL (6.55%) is comparable to the rest of the industry.
SFL had an Average Return On Invested Capital over the past 3 years of 6.41%. This is significantly below the industry average of 43.80%.
The last Return On Invested Capital (6.55%) for SFL is above the 3 year average (6.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.25% | ||
| ROE | 8.07% | ||
| ROIC | 6.55% |
ROA(3y)4.08%
ROA(5y)1.46%
ROE(3y)14.46%
ROE(5y)4.65%
ROIC(3y)6.41%
ROIC(5y)5.95%
1.3 Margins
With a Profit Margin value of 11.15%, SFL perfoms like the industry average, outperforming 45.07% of the companies in the same industry.
SFL's Profit Margin has declined in the last couple of years.
SFL's Operating Margin of 30.42% is in line compared to the rest of the industry. SFL outperforms 59.62% of its industry peers.
In the last couple of years the Operating Margin of SFL has declined.
With an excellent Gross Margin value of 75.94%, SFL belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
SFL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.42% | ||
| PM (TTM) | 11.15% | ||
| GM | 75.94% |
OM growth 3Y-9.4%
OM growth 5Y-6.35%
PM growth 3YN/A
PM growth 5Y-8.69%
GM growth 3Y4.29%
GM growth 5Y1.85%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SFL is destroying value.
SFL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SFL has been increased compared to 5 years ago.
Compared to 1 year ago, SFL has an improved debt to assets ratio.
2.2 Solvency
SFL has an Altman-Z score of 0.62. This is a bad value and indicates that SFL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.62, SFL is doing worse than 68.08% of the companies in the same industry.
SFL has a debt to FCF ratio of 32.62. This is a negative value and a sign of low solvency as SFL would need 32.62 years to pay back of all of its debts.
SFL has a Debt to FCF ratio of 32.62. This is in the lower half of the industry: SFL underperforms 66.20% of its industry peers.
SFL has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.65, SFL is not doing good in the industry: 81.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 32.62 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.97
WACC6.72%
2.3 Liquidity
A Current Ratio of 0.31 indicates that SFL may have some problems paying its short term obligations.
With a Current ratio value of 0.31, SFL is not doing good in the industry: 93.90% of the companies in the same industry are doing better.
A Quick Ratio of 0.30 indicates that SFL may have some problems paying its short term obligations.
The Quick ratio of SFL (0.30) is worse than 93.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The earnings per share for SFL have decreased strongly by -26.32% in the last year.
SFL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.56% yearly.
SFL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.22%.
Measured over the past years, SFL shows a quite strong growth in Revenue. The Revenue has been growing by 12.43% on average per year.
EPS 1Y (TTM)-26.32%
EPS 3YN/A
EPS 5Y-9.56%
EPS growth Q2Q236.36%
Revenue 1Y (TTM)12.22%
Revenue growth 3Y16.89%
Revenue growth 5Y12.43%
Revenue growth Q2Q32.2%
3.2 Future
The Earnings Per Share is expected to grow by 17.62% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y11.17%
EPS Next 2Y2.74%
EPS Next 3Y17.62%
EPS Next 5YN/A
Revenue Next Year19.44%
Revenue Next 2Y6%
Revenue Next 3Y5%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.34, the valuation of SFL can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of SFL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SFL to the average of the S&P500 Index (28.15), we can say SFL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.49, the valuation of SFL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SFL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 20.20. SFL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 18.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SFL indicates a slightly more expensive valuation: SFL is more expensive than 64.79% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SFL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.56 | ||
| EV/EBITDA | 9.71 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SFL's earnings are expected to grow with 17.62% in the coming years.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y2.74%
EPS Next 3Y17.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.61%, SFL is a good candidate for dividend investing.
SFL's Dividend Yield is rather good when compared to the industry average which is at 5.80. SFL pays more dividend than 81.22% of the companies 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 | 7.61% |
5.2 History
The dividend of SFL decreases each year by -7.22%.
SFL has paid a dividend for at least 10 years, which is a reliable track record.
SFL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.22%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SFL pays out 146.65% of its income as dividend. This is not a sustainable payout ratio.
DP146.65%
EPS Next 2Y2.74%
EPS Next 3Y17.62%
SFL CORP LTD
NYSE:SFL (5/17/2024, 7:25:54 PM)
After market: 14.05 0 (0%)14.05
-0.15 (-1.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 18.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.25% | ||
| ROE | 8.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.42% | ||
| PM (TTM) | 11.15% | ||
| GM | 75.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-26.32%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y11.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.22%
Revenue growth 3Y16.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y