SCORPIO TANKERS INC (STNG) Stock Fundamental Analysis
NYSE:STNG - New York Stock Exchange, Inc. - MHY7542C1306 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to STNG. STNG was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. STNG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. STNG has a bad growth rate and is valued cheaply. This makes STNG very considerable for value investing!
1. Profitability
1.1 Basic Checks
STNG had positive earnings in the past year.
In the past year STNG had a positive cash flow from operations.
Of the past 5 years STNG 4 years were profitable.
In the past 5 years STNG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.91%, STNG belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.56%, STNG is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
STNG has a Return On Invested Capital of 8.63%. This is in the better half of the industry: STNG outperforms 69.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STNG is significantly below the industry average of 23.80%.
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
STNG has a better Profit Margin (48.08%) than 92.38% of its industry peers.
The Operating Margin of STNG (38.89%) is better than 84.29% of its industry peers.
In the last couple of years the Operating Margin of STNG has grown nicely.
STNG has a better Gross Margin (70.78%) than 80.48% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STNG is 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
STNG has an Altman-Z score of 2.48. This is not the best score and indicates that STNG is in the grey zone with still only limited risk for bankruptcy at the moment.
STNG has a better Altman-Z score (2.48) than 75.24% of its industry peers.
STNG has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
STNG's Debt to FCF ratio of 1.46 is amongst the best of the industry. STNG outperforms 85.24% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that STNG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.30, STNG is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.98
WACC8.79%
2.3 Liquidity
A Current Ratio of 4.20 indicates that STNG has no problem at all paying its short term obligations.
STNG's Current ratio of 4.20 is amongst the best of the industry. STNG outperforms 90.00% of its industry peers.
STNG has a Quick Ratio of 4.12. This indicates that STNG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of STNG (4.12) is better than 90.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.12 |
3. Growth
3.1 Past
The earnings per share for STNG have decreased strongly by -36.50% in the last year.
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
STNG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.03% yearly.
STNG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.54% yearly.
EPS Next Y-47.34%
EPS Next 2Y-21.17%
EPS Next 3Y0.03%
EPS Next 5YN/A
Revenue Next Year-26.01%
Revenue Next 2Y-13.36%
Revenue Next 3Y-6.54%
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
The Price/Earnings ratio is 6.21, which indicates a rather cheap valuation of STNG.
STNG's Price/Earnings ratio is rather cheap when compared to the industry. STNG is cheaper than 86.67% of the companies in the same industry.
STNG is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.04, the valuation of STNG can be described as very cheap.
Based on the Price/Forward Earnings ratio, STNG is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STNG to the average of the S&P500 Index (36.44), we can say STNG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.21 | ||
| Fwd PE | 7.04 |
4.2 Price Multiples
76.67% of the companies in the same industry are more expensive than STNG, based on the Enterprise Value to EBITDA ratio.
STNG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STNG is cheaper than 92.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.33 | ||
| EV/EBITDA | 4.25 |
4.3 Compensation for Growth
The excellent profitability rating of STNG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-21.17%
EPS Next 3Y0.03%
5. Dividend
5.1 Amount
STNG has a Yearly Dividend Yield of 3.66%.
STNG's Dividend Yield is comparable with the industry average which is at 6.48.
Compared to an average S&P500 Dividend Yield of 2.34, STNG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
On average, the dividend of STNG grows each year by 33.06%, which is quite nice.
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.
STNG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.04%
EPS Next 2Y-21.17%
EPS Next 3Y0.03%
43.55
-0.19 (-0.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.27%
Inst Owner Change0%
Ins Owners5.89%
Ins Owner ChangeN/A
Market Cap2.22B
Analysts84.44
Price Target64.6 (48.34%)
Short Float %4.92%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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)-5.75%
PT rev (3m)-11.25%
EPS NQ rev (1m)-7.26%
EPS NQ rev (3m)-24.78%
EPS NY rev (1m)2.38%
EPS NY rev (3m)-18.13%
Revenue NQ rev (1m)-1.81%
Revenue NQ rev (3m)-6.03%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)-4.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.21 | ||
| Fwd PE | 7.04 | ||
| P/S | 2.08 | ||
| P/FCF | 3.33 | ||
| P/OCF | 3.33 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)7.01
EY16.1%
EPS(NY)6.18
Fwd EY14.2%
FCF(TTM)13.07
FCFY30.02%
OCF(TTM)13.07
OCFY30.02%
SpS20.91
BVpS57.25
TBVpS57.09
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 | 2.48 |
F-Score6
WACC8.79%
ROIC/WACC0.98
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-47.34%
EPS Next 2Y-21.17%
EPS Next 3Y0.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.88%
Revenue growth 3Y32%
Revenue growth 5Y12.05%
Sales Q2Q%-45.32%
Revenue Next Year-26.01%
Revenue Next 2Y-13.36%
Revenue Next 3Y-6.54%
Revenue Next 5YN/A
EBIT growth 1Y-41.25%
EBIT growth 3YN/A
EBIT growth 5Y35.24%
EBIT Next Year-24.14%
EBIT Next 3Y-3.27%
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%