SFL Corporation Ltd.
SFL Corporation Ltd. Fundamental Analysis
SFL Corporation Ltd. (SFL) shows moderate financial fundamentals with a PE ratio of -53.79, profit margin of -3.67%, and ROE of -2.63%. The company generates $0.7B in annual revenue with strong year-over-year growth of 19.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SFL's fundamental strength across five key dimensions:
Efficiency Score
WeakSFL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSFL trades at attractive valuation levels.
Growth Score
ExcellentSFL delivers strong and consistent growth momentum.
Financial Health Score
WeakSFL carries high financial risk with limited liquidity.
Profitability Score
WeakSFL struggles to sustain strong margins.
Key Financial Metrics
Is SFL Expensive or Cheap?
P/E Ratio
SFL trades at -53.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SFL's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values SFL Corporation Ltd. at 1.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.44 times EBITDA. This is generally considered low.
How Well Does SFL Make Money?
Net Profit Margin
For every $100 in sales, SFL Corporation Ltd. keeps $-3.67 as profit after all expenses.
Operating Margin
Core operations generate 23.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.63 in profit for every $100 of shareholder equity.
ROA
SFL Corporation Ltd. generates $-0.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SFL Corporation Ltd. generates strong operating cash flow of $290.14M, reflecting robust business health.
Free Cash Flow
SFL Corporation Ltd. generates strong free cash flow of $219.66M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.65 in free cash annually.
FCF Yield
SFL converts 15.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-53.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How SFL Stacks Against Its Sector Peers
| Metric | SFL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -53.79 | 26.76 | Better (Cheaper) |
| ROE | -2.63% | 1300.00% | Weak |
| Net Margin | -3.67% | -29570.00% (disorted) | Weak |
| Debt/Equity | 2.67 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.36 | 10.68 | Weak Liquidity |
| ROA | -0.73% | -1545134.00% (disorted) | Weak |
SFL outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SFL Corporation Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.61%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
291.42%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
23.19%
Industry Style: Cyclical, Value, Infrastructure
High Growth