SCORPIO TANKERS INC (STNG) Stock Fundamental Analysis
NYSE:STNG - New York Stock Exchange, Inc. - MHY7542C1306 - Common Stock - Currency: USD
Taking everything into account, STNG scores 7 out of 10 in our fundamental rating. STNG was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making STNG a very profitable company, without any liquidiy or solvency issues. STNG has a bad growth rate and is valued cheaply. This makes STNG very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year STNG was profitable.
In the past year STNG had a positive cash flow from operations.
STNG had positive earnings in 4 of the past 5 years.
In the past 5 years STNG always reported a positive cash flow from operatings.
1.2 Ratios
STNG has a better Return On Assets (12.91%) than 89.67% of its industry peers.
Looking at the Return On Equity, with a value of 17.56%, STNG is in the better half of the industry, outperforming 77.00% of the companies in the same industry.
The Return On Invested Capital of STNG (8.63%) is better than 69.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STNG is significantly below the industry average of 23.55%.
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 92.49% of its industry peers.
The Operating Margin of STNG (38.89%) is better than 84.04% 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 belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
STNG's Gross Margin has improved in the last couple of years.
| 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
STNG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
STNG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STNG has less shares outstanding
Compared to 1 year ago, STNG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.49 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 2.49. This is in the better half of the industry: STNG outperforms 75.12% 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 85.45% 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 62.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.99
WACC8.75%
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 90.14% 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.
STNG's Quick ratio of 4.12 is amongst the best of the industry. STNG outperforms 91.08% 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.
Looking at the last year, STNG shows a very negative growth in Revenue. The Revenue has decreased by -20.88% in the last year.
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 -6.60% 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-26.8%
Revenue Next 2Y-13.71%
Revenue Next 3Y-6.6%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings ratio is 6.31, which indicates a rather cheap valuation of STNG.
87.32% of the companies in the same industry are more expensive than STNG, based on the Price/Earnings ratio.
STNG is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
STNG is valuated cheaply with a Price/Forward Earnings ratio of 7.75.
Based on the Price/Forward Earnings ratio, STNG is valued cheaply inside the industry as 81.22% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.19. STNG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
STNG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STNG is cheaper than 77.46% of the companies in the same industry.
STNG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STNG is cheaper than 93.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.38 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
The excellent profitability rating of STNG 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 3.82%.
Compared to an average industry Dividend Yield of 6.56, STNG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, STNG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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%
44.23
+2.79 (+6.73%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.27%
Inst Owner Change3.43%
Ins Owners5.89%
Ins Owner ChangeN/A
Market Cap2.26B
Analysts84.44
Price Target68.54 (54.96%)
Short Float %5.67%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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)3.67%
PT rev (3m)-5.83%
EPS NQ rev (1m)1.43%
EPS NQ rev (3m)-18.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.14%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-4.3%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)-5.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.75 | ||
| P/S | 2.12 | ||
| P/FCF | 3.38 | ||
| P/OCF | 3.38 | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)7.01
EY15.85%
EPS(NY)5.7
Fwd EY12.9%
FCF(TTM)13.07
FCFY29.56%
OCF(TTM)13.07
OCFY29.56%
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 | 2.49 |
F-Score6
WACC8.75%
ROIC/WACC0.99
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-26.8%
Revenue Next 2Y-13.71%
Revenue Next 3Y-6.6%
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%