Scorpio Tankers Inc.
Scorpio Tankers Inc. Fundamental Analysis
Scorpio Tankers Inc. (STNG) shows moderate financial fundamentals with a PE ratio of 7.66, profit margin of 48.44%, and ROE of 15.85%. The company generates $1.1B in annual revenue with weak year-over-year growth of -24.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STNG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSTNG demonstrates superior asset utilization.
Valuation Score
ModerateSTNG shows balanced valuation metrics.
Growth Score
WeakSTNG faces weak or negative growth trends.
Financial Health Score
ExcellentSTNG maintains a strong and stable balance sheet.
Profitability Score
ExcellentSTNG achieves industry-leading margins.
Key Financial Metrics
Is STNG Expensive or Cheap?
P/E Ratio
STNG trades at 7.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STNG's PEG of 7.38 indicates potential overvaluation.
Price to Book
The market values Scorpio Tankers Inc. at 1.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.84 times EBITDA. This is generally considered low.
How Well Does STNG Make Money?
Net Profit Margin
For every $100 in sales, Scorpio Tankers Inc. keeps $48.44 as profit after all expenses.
Operating Margin
Core operations generate 38.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.85 in profit for every $100 of shareholder equity.
ROA
Scorpio Tankers Inc. generates $12.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Scorpio Tankers Inc. generates strong operating cash flow of $649.98M, reflecting robust business health.
Free Cash Flow
Scorpio Tankers Inc. generates strong free cash flow of $521.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.07 in free cash annually.
FCF Yield
STNG converts 11.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
13.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How STNG Stacks Against Its Sector Peers
| Metric | STNG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.66 | 21.39 | Better (Cheaper) |
| ROE | 15.85% | 922.00% | Weak |
| Net Margin | 48.44% | -57637.00% (disorted) | Strong |
| Debt/Equity | 0.17 | -0.49 (disorted) | Distorted |
| Current Ratio | 13.98 | 5.04 | Strong Liquidity |
| ROA | 12.32% | -1987.00% (disorted) | Strong |
STNG outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Scorpio Tankers Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.34%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
308.29%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
30.74%
Industry Style: Cyclical, Value, Commodity
High Growth