SCORPIO TANKERS INC (STNG) Stock Fundamental Analysis
NYSE:STNG - New York Stock Exchange, Inc. - MHY7542C1306 - Common Stock - Currency: USD
STNG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. STNG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. STNG has a bad growth rate and is valued cheaply. These ratings could make STNG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year STNG was profitable.
STNG had a positive operating cash flow in the past year.
STNG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years STNG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.91%, STNG belongs to the top of the industry, outperforming 89.67% of the companies in the same industry.
STNG's Return On Equity of 17.56% is fine compared to the rest of the industry. STNG outperforms 77.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.63%, STNG is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STNG is significantly below the industry average of 25.87%.
The last Return On Invested Capital (8.63%) for STNG is well below the 3 year average (14.78%), which needs to be investigated, but indicates that STNG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 17.56% | ||
| ROIC | 8.63% |
ROA(3y)14.79%
ROA(5y)8.3%
ROE(3y)23.39%
ROE(5y)12.39%
ROIC(3y)14.78%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 48.08%, STNG belongs to the best of the industry, outperforming 92.49% of the companies in the same industry.
STNG has a Operating Margin of 38.89%. This is amongst the best in the industry. STNG outperforms 83.57% of its industry peers.
In the last couple of years the Operating Margin of STNG has grown nicely.
Looking at the Gross Margin, with a value of 70.78%, STNG is in the better half of the industry, outperforming 79.34% of the companies in the same industry.
In the last couple of years the Gross Margin of STNG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.89% | ||
| PM (TTM) | 48.08% | ||
| GM | 70.78% |
OM growth 3YN/A
OM growth 5Y20.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.99%
GM growth 5Y5.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STNG is still creating some value.
The number of shares outstanding for STNG has been reduced compared to 1 year ago.
The number of shares outstanding for STNG has been reduced compared to 5 years ago.
Compared to 1 year ago, STNG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.33 indicates that STNG is not a great score, but indicates only limited risk for bankruptcy at the moment.
STNG has a Altman-Z score of 2.33. This is in the better half of the industry: STNG outperforms 76.06% of its industry peers.
The Debt to FCF ratio of STNG is 1.46, which is an excellent value as it means it would take STNG, only 1.46 years of fcf income to pay off all of its debts.
STNG's Debt to FCF ratio of 1.46 is amongst the best of the industry. STNG outperforms 87.32% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that STNG is not too dependend on debt financing.
STNG has a better Debt to Equity ratio (0.30) than 61.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 2.33 |
ROIC/WACC1
WACC8.64%
2.3 Liquidity
STNG has a Current Ratio of 4.20. This indicates that STNG is financially healthy and has no problem in meeting its short term obligations.
STNG has a better Current ratio (4.20) than 89.67% of its industry peers.
A Quick Ratio of 4.12 indicates that STNG has no problem at all paying its short term obligations.
STNG has a Quick ratio of 4.12. This is amongst the best in the industry. STNG outperforms 90.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.12 |
3. Growth
3.1 Past
STNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.50%.
STNG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.88%.
The Revenue has been growing by 12.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-36.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-74.06%
Revenue 1Y (TTM)-20.88%
Revenue growth 3Y32%
Revenue growth 5Y12.05%
Sales Q2Q%-45.32%
3.2 Future
Based on estimates for the next years, STNG will show a decrease in Earnings Per Share. The EPS will decrease by -5.09% on average per year.
Based on estimates for the next years, STNG will show a decrease in Revenue. The Revenue will decrease by -7.33% on average per year.
EPS Next Y-49.28%
EPS Next 2Y-24.28%
EPS Next 3Y-5.09%
EPS Next 5YN/A
Revenue Next Year-27.11%
Revenue Next 2Y-13.79%
Revenue Next 3Y-7.33%
Revenue Next 5YN/A
3.3 Evolution
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
With a Price/Earnings ratio of 5.71, the valuation of STNG can be described as very cheap.
STNG's Price/Earnings ratio is rather cheap when compared to the industry. STNG is cheaper than 86.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of STNG to the average of the S&P500 Index (25.82), we can say STNG is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.02, the valuation of STNG can be described as very cheap.
STNG's Price/Forward Earnings ratio is rather cheap when compared to the industry. STNG is cheaper than 83.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STNG to the average of the S&P500 Index (21.76), we can say STNG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
STNG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STNG is cheaper than 77.00% of the companies in the same industry.
93.43% of the companies in the same industry are more expensive than STNG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3 | ||
| EV/EBITDA | 3.83 |
4.3 Compensation for Growth
STNG has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as STNG's earnings are expected to decrease with -5.09% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.28%
EPS Next 3Y-5.09%
5. Dividend
5.1 Amount
STNG has a Yearly Dividend Yield of 3.91%. Purely for dividend investing, there may be better candidates out there.
STNG's Dividend Yield is comparable with the industry average which is at 6.77.
STNG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
The dividend of STNG is nicely growing with an annual growth rate of 33.06%!
STNG has been paying a dividend for at least 10 years, so it has a reliable track record.
STNG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)33.06%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
16.04% of the earnings are spent on dividend by STNG. This is a low number and sustainable payout ratio.
DP16.04%
EPS Next 2Y-24.28%
EPS Next 3Y-5.09%
40.05
+0.59 (+1.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.05%
Inst Owner Change3.56%
Ins Owners6.01%
Ins Owner ChangeN/A
Market Cap2.04B
Analysts81.05
Price Target66.11 (65.07%)
Short Float %6.57%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend1.62
Dividend Growth(5Y)33.06%
DP16.04%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.77%
Min EPS beat(2)-34.08%
Max EPS beat(2)37.62%
EPS beat(4)2
Avg EPS beat(4)-3.28%
Min EPS beat(4)-34.08%
Max EPS beat(4)37.62%
EPS beat(8)5
Avg EPS beat(8)1.68%
EPS beat(12)7
Avg EPS beat(12)2.69%
EPS beat(16)9
Avg EPS beat(16)5.27%
Revenue beat(2)1
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-8.77%
Max Revenue beat(2)4.17%
Revenue beat(4)2
Avg Revenue beat(4)-3.15%
Min Revenue beat(4)-9.66%
Max Revenue beat(4)4.17%
Revenue beat(8)4
Avg Revenue beat(8)-2.23%
Revenue beat(12)7
Avg Revenue beat(12)0.81%
Revenue beat(16)8
Avg Revenue beat(16)0%
PT rev (1m)-9.17%
PT rev (3m)-20.41%
EPS NQ rev (1m)-20.04%
EPS NQ rev (3m)-24.98%
EPS NY rev (1m)-21.14%
EPS NY rev (3m)-30.14%
Revenue NQ rev (1m)-4.65%
Revenue NQ rev (3m)-5.17%
Revenue NY rev (1m)-5.94%
Revenue NY rev (3m)-13.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 7.02 | ||
| P/S | 1.87 | ||
| P/FCF | 3 | ||
| P/OCF | 3 | ||
| P/B | 0.68 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 3.83 |
EPS(TTM)7.01
EY17.5%
EPS(NY)5.7
Fwd EY14.24%
FCF(TTM)13.36
FCFY33.36%
OCF(TTM)13.36
OCFY33.36%
SpS21.37
BVpS58.51
TBVpS58.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 17.56% | ||
| ROCE | 10.92% | ||
| ROIC | 8.63% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 10.07% | ||
| OM | 38.89% | ||
| PM (TTM) | 48.08% | ||
| GM | 70.78% | ||
| FCFM | 62.53% |
ROA(3y)14.79%
ROA(5y)8.3%
ROE(3y)23.39%
ROE(5y)12.39%
ROIC(3y)14.78%
ROIC(5y)N/A
ROICexc(3y)17.09%
ROICexc(5y)N/A
ROICexgc(3y)17.14%
ROICexgc(5y)N/A
ROCE(3y)18.7%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y44.72%
ROICexc growth 3YN/A
ROICexc growth 5Y44.72%
OM growth 3YN/A
OM growth 5Y20.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.99%
GM growth 5Y5.25%
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.73% | ||
| Profit Quality | 130.06% | ||
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.12 | ||
| Altman-Z | 2.33 |
F-Score6
WACC8.64%
ROIC/WACC1
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)134.02%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-74.06%
EPS Next Y-49.28%
EPS Next 2Y-24.28%
EPS Next 3Y-5.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.88%
Revenue growth 3Y32%
Revenue growth 5Y12.05%
Sales Q2Q%-45.32%
Revenue Next Year-27.11%
Revenue Next 2Y-13.79%
Revenue Next 3Y-7.33%
Revenue Next 5YN/A
EBIT growth 1Y-41.25%
EBIT growth 3YN/A
EBIT growth 5Y35.24%
EBIT Next Year-18.05%
EBIT Next 3Y0.32%
EBIT Next 5YN/A
FCF growth 1Y-35.78%
FCF growth 3Y131.4%
FCF growth 5Y31.54%
OCF growth 1Y-35.89%
OCF growth 3Y124.12%
OCF growth 5Y31.54%