SCORPIO TANKERS INC (STNG)

MHY7542C1306 - Common Stock

71.55  +1.01 (+1.43%)

After market: 71.6 +0.05 (+0.07%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to STNG. STNG was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While STNG has a great profitability rating, there are some minor concerns on its financial health. STNG is cheap, but on the other hand it scores bad on growth. These ratings would make STNG suitable for value investing!



7

1. Profitability

1.1 Basic Checks

In the past year STNG was profitable.
STNG had a positive operating cash flow in the past year.
In multiple years STNG reported negative net income over the last 5 years.
Each year in the past 5 years STNG had a positive operating cash flow.

1.2 Ratios

STNG has a Return On Assets of 12.93%. This is in the better half of the industry: STNG outperforms 72.77% of its industry peers.
Looking at the Return On Equity, with a value of 21.41%, STNG is in the better half of the industry, outperforming 62.91% of the companies in the same industry.
With a decent Return On Invested Capital value of 14.95%, STNG is doing good in the industry, outperforming 74.65% of the companies in the same industry.
Industry RankSector Rank
ROA 12.93%
ROE 21.41%
ROIC 14.95%
ROA(3y)7.41%
ROA(5y)4.62%
ROE(3y)11.36%
ROE(5y)7.24%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

STNG has a better Profit Margin (40.77%) than 83.57% of its industry peers.
In the last couple of years the Profit Margin of STNG has grown nicely.
With an excellent Operating Margin value of 52.46%, STNG belongs to the best of the industry, outperforming 86.85% of the companies in the same industry.
STNG's Operating Margin has improved in the last couple of years.
STNG has a Gross Margin of 76.47%. This is amongst the best in the industry. STNG outperforms 82.63% of its industry peers.
In the last couple of years the Gross Margin of STNG has grown nicely.
Industry RankSector Rank
OM 52.46%
PM (TTM) 40.77%
GM 76.47%
OM growth 3Y22.37%
OM growth 5Y95.31%
PM growth 3Y58.33%
PM growth 5YN/A
GM growth 3Y6.36%
GM growth 5Y12.8%

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STNG is creating value.
Compared to 1 year ago, STNG has less shares outstanding
STNG has more shares outstanding than it did 5 years ago.
STNG has a better debt/assets ratio than last year.

2.2 Solvency

STNG has an Altman-Z score of 2.44. 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.
Looking at the Altman-Z score, with a value of 2.44, STNG is in the better half of the industry, outperforming 65.73% of the companies in the same industry.
STNG has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
STNG has a better Debt to FCF ratio (1.84) than 77.00% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that STNG is not too dependend on debt financing.
The Debt to Equity ratio of STNG (0.45) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 1.84
Altman-Z 2.44
ROIC/WACC2.05
WACC7.29%

2.3 Liquidity

STNG has a Current Ratio of 1.13. This is a normal value and indicates that STNG is financially healthy and should not expect problems in meeting its short term obligations.
STNG has a Current ratio (1.13) which is in line with its industry peers.
A Quick Ratio of 1.12 indicates that STNG should not have too much problems paying its short term obligations.
STNG has a Quick ratio of 1.12. This is comparable to the rest of the industry: STNG outperforms 57.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.12

3

3. Growth

3.1 Past

STNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.85%.
The Earnings Per Share has been growing by 78.99% on average over the past years. This is a very strong growth
The Revenue for STNG has decreased by -14.19% in the past year. This is quite bad
The Revenue has been growing by 18.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.85%
EPS 3Y78.99%
EPS 5YN/A
EPS growth Q2Q-35.14%
Revenue 1Y (TTM)-14.19%
Revenue growth 3Y13.56%
Revenue growth 5Y18.05%
Revenue growth Q2Q-31.89%

3.2 Future

Based on estimates for the next years, STNG will show a decrease in Earnings Per Share. The EPS will decrease by -6.37% on average per year.
STNG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.51% yearly.
EPS Next Y22.63%
EPS Next 2Y4.32%
EPS Next 3Y-6.37%
EPS Next 5YN/A
Revenue Next Year4.85%
Revenue Next 2Y-2.3%
Revenue Next 3Y-6.51%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.89 indicates a rather cheap valuation of STNG.
77.00% of the companies in the same industry are more expensive than STNG, based on the Price/Earnings ratio.
STNG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
Based on the Price/Forward Earnings ratio of 5.62, the valuation of STNG can be described as very cheap.
Based on the Price/Forward Earnings ratio, STNG is valued cheaper than 89.20% of the companies in the same industry.
STNG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.89
Fwd PE 5.62

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as STNG.
89.67% of the companies in the same industry are more expensive than STNG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.39
EV/EBITDA 5.55

4.3 Compensation for Growth

STNG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent 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 -6.37% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y4.32%
EPS Next 3Y-6.37%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.19%, STNG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.82, STNG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, STNG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.19%

5.2 History

On average, the dividend of STNG grows each year by 22.93%, 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)22.93%
Div Incr Years1
Div Non Decr Years3

5.3 Sustainability

STNG pays out 10.54% of its income as dividend. This is a sustainable payout ratio.
DP10.54%
EPS Next 2Y4.32%
EPS Next 3Y-6.37%

SCORPIO TANKERS INC

NYSE:STNG (3/28/2024, 8:04:01 PM)

After market: 71.6 +0.05 (+0.07%)

71.55

+1.01 (+1.43%)

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 Cap3.80B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.19%
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 6.89
Fwd PE 5.62
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)0.3
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 12.93%
ROE 21.41%
ROCE
ROIC
ROICexc
ROICexgc
OM 52.46%
PM (TTM) 40.77%
GM 76.47%
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 Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.13
Quick Ratio 1.12
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)-12.85%
EPS 3Y78.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y22.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.19%
Revenue growth 3Y13.56%
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