Is Stolt-Nielsen (OB:SNI) starting to catch your eye? After a steady run recently, even small moves in the shares can get investors wondering what might be brewing behind the scenes. There may not have been a single headline-grabbing event, but the share price upswing could have you asking whether there is a signal in the noise, or just another blip on a longer journey.
Looking back, Stolt-Nielsen’s momentum has picked up over the past month, with the stock up close to 8% and notching a nearly 28% gain over the past three months. While that marks a shift from a lukewarm performance this past year, the shipper’s longer-term story includes an impressive five-fold return over the last five years. In addition, changes in annual revenue and net income growth point to an evolving risk profile, which investors should keep on their radar as they weigh future prospects.
So, with the recent swing in share price, is Stolt-Nielsen trading at a bargain or are markets already pricing in everything you need to know about its growth?
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Most Popular Narrative: 16.5% Undervalued
The leading narrative considers Stolt-Nielsen to be trading below its estimated fair value, suggesting room for upside according to analysts’ projections.
"Stolt-Nielsen is diversifying its portfolio with strategic acquisitions like Hassel 4 and LNG carrier Avenir. These additions are expected to contribute approximately $50 million annually to EBITDA and are likely to impact earnings growth positively."
Craving the full story behind this bullish outlook? The analysts’ math relies on ambitious plans for growth and a financial formula that is not often seen outside high-growth industries. Curious which forward-looking numbers power this big valuation call? Stick around to uncover the surprising assumptions that could help explain the discount or prove it fleeting.
However, ongoing geopolitical tensions and potential tariffs on maritime operations could place significant pressure on Stolt-Nielsen’s core tanker business and overall revenue growth.
Switching lenses, the SWS DCF model also judges Stolt-Nielsen as undervalued, which aligns with the previous valuation. It is worth considering, however, whether market conditions could change quickly enough to challenge both views.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Stolt-Nielsen for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Build Your Own Stolt-Nielsen Narrative
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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Kshitija (or Keisha) Bhandaru is an Equity Analyst at Simply Wall St and has over 6 years of experience in the finance industry and describes herself as a lifelong learner driven by her intellectual curiosity. She previously worked with Market Realist for 5 years as an Equity Analyst.
