International Seaways (NYSE:INSW) - Share price, News & Analysis

Q: What is the Fair Price of INSW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

INSW ($35.13) is trading below our estimate of [[fair value]] ($189.42)

INSW fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

INSW Stock Overview

International Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade.

Rewards

Trading at 81.5% below our estimate of its fair value

Earnings are forecast to grow 39.36% per year

Earnings have grown 7.7% per year over the past 5 years

Risk Analysis

Significant insider selling over the past 3 months

International Seaways Competitors

Holly Energy Partners

NYSE:HEP

US$2.1b

Scorpio Tankers

NYSE:STNG

US$2.3b

NuStar Energy

NYSE:NS

US$1.5b

Frontline

NYSE:FRO

US$2.4b

Price History & Performance

Summary of all time highs, changes and price drops for International Seaways
Historical stock prices
Current Share Price	US$35.13
52 Week High	US$36.72
52 Week Low	US$13.05
Beta	0.031
1 Month Change	14.65%
3 Month Change	66.02%
1 Year Change	84.80%
3 Year Change	69.30%
5 Year Change	74.00%
Change since IPO	171.27%

Recent News & Updates

Sep 12

International Seaways goes ex-dividend tomorrow

International Seaways (NYSE:INSW) had declared $0.12/share quarterly dividend, in line with previous. Payable Sept. 28; for shareholders of record Sept. 14; ex-div Sept. 13. See INSW Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

	INSW	US Oil and Gas	US Market
7D	4.3%	2.2%	-2.5%
1Y	84.8%	32.0%	-23.2%

Return vs Industry: INSW exceeded the US Oil and Gas industry which returned 32% over the past year.

Return vs Market: INSW exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is INSW's price volatile compared to industry and market?
INSW volatility
INSW Average Weekly Movement	7.1%
Oil and Gas Industry Average Movement	8.0%
Market Average Movement	6.8%
10% most volatile stocks in US Market	15.5%
10% least volatile stocks in US Market	2.8%

Stable Share Price: INSW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: INSW's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	2,061	Lois Zabrocky	https://intlseas.com

International Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments, Crude Tankers and Product Carriers. As of December 31, 2021, the company owned and operated a fleet of 83 vessels, which include 12 chartered-in vessels, as well as had ownership interests in two floating storage and offloading service vessels.

International Seaways Fundamentals Summary

How do International Seaways's earnings and revenue compare to its market cap?
INSW fundamental statistics
Market Cap	US$1.75b
Earnings (TTM)	-US$45.54m
Revenue (TTM)	US$469.17m

3.7x

P/S Ratio

-38.3x

P/E Ratio

Is INSW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
INSW income statement (TTM)
Revenue	US$469.17m
Cost of Revenue	US$295.74m
Gross Profit	US$173.42m
Other Expenses	US$218.97m
Earnings	-US$45.54m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.92
Gross Margin	36.96%
Net Profit Margin	-9.71%
Debt/Equity Ratio	87.3%

How did INSW perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

-32%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is INSW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for INSW?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for INSW. This is calculated by dividing INSW's market cap by their current preferred multiple.
What is INSW's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.75b

INSW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.6x
Enterprise Value/EBITDA	21.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does INSW's PS Ratio compare to its peers?

INSW PS Ratio vs Peers

The above table shows the PS ratio for INSW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	2.6x
HEP Holly Energy Partners	4.2x	2.1%	US$2.1b
STNG Scorpio Tankers	2.7x	-8.1%	US$2.3b
NS NuStar Energy	0.9x	2.9%	US$1.5b
FRO Frontline	2.7x	17.6%	US$2.4b
INSW International Seaways	3.7x	11.7%	US$1.7b

Price-To-Sales vs Peers: INSW is expensive based on its Price-To-Sales Ratio (3.7x) compared to the peer average (2.6x).

Price to Earnings Ratio vs Industry

How does INSW's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Sales vs Industry: INSW is expensive based on its Price-To-Sales Ratio (3.7x) compared to the US Oil and Gas industry average (1.5x)

Price to Sales Ratio vs Fair Ratio

What is INSW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

INSW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	3.7x
Fair PS Ratio	1.3x

Price-To-Sales vs Fair Ratio: INSW is expensive based on its Price-To-Sales Ratio (3.7x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

Share Price vs Fair Value

What is the Fair Price of INSW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: INSW ($35.13) is trading below our estimate of fair value ($189.42)

Significantly Below Fair Value: INSW is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is International Seaways forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

39.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: INSW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: INSW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: INSW is expected to become profitable in the next 3 years.

Revenue vs Market: INSW's revenue (11.7% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: INSW's revenue (11.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: INSW's Return on Equity is forecast to be low in 3 years time (18.6%).

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Past Performance

How has International Seaways performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: INSW is currently unprofitable.

Growing Profit Margin: INSW is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: INSW is unprofitable, but has reduced losses over the past 5 years at a rate of 7.7% per year.

Accelerating Growth: Unable to compare INSW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: INSW is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (184.6%).

Return on Equity

High ROE: INSW has a negative Return on Equity (-3.78%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is International Seaways's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: INSW's short term assets ($435.0M) exceed its short term liabilities ($208.9M).

Long Term Liabilities: INSW's short term assets ($435.0M) do not cover its long term liabilities ($924.2M).

Debt to Equity History and Analysis

Debt Level: INSW's net debt to equity ratio (68.5%) is considered high.

Reducing Debt: INSW's debt to equity ratio has increased from 40% to 87.3% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: INSW has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if INSW has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

What is International Seaways's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.37%

Current Dividend Yield

Dividend Yield vs Market

International Seaways Dividend Yield vs Market

How does International Seaways dividend yield compare to the market?
Segment	Dividend Yield
Company (International Seaways)	1.4%
Market Bottom 25% (US)	1.7%
Market Top 25% (US)	4.7%
Industry Average (Oil and Gas)	5.0%
Analyst forecast in 3 Years (International Seaways)	1.3%

Notable Dividend: INSW's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: INSW's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (4.73%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, INSW has been paying a dividend for less than 10 years.

Growing Dividend: INSW's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: INSW is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: INSW is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure

CEO

Lois Zabrocky (52 yo)

4.42yrs

Tenure

US$3,052,550

Compensation

Ms. Lois K. Zabrocky serves as President and Director at Diamond S Shipping Inc. since July 16, 2021. She has been an Independent Director of Tidewater Inc. since July 28, 2020. Ms. Zabrocky has been the C...

CEO Compensation Analysis

Lois Zabrocky's Compensation vs International Seaways Earnings

How has Lois Zabrocky's remuneration changed compared to International Seaways's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	-US$46m
Mar 31 2022	n/a	n/a	-US$133m
Dec 31 2021	US$3m	US$675k	-US$134m
Sep 30 2021	n/a	n/a	-US$216m
Jun 30 2021	n/a	n/a	-US$135m
Mar 31 2021	n/a	n/a	-US$52m
Dec 31 2020	US$3m	US$672k	-US$6m
Sep 30 2020	n/a	n/a	US$127m
Jun 30 2020	n/a	n/a	US$102m
Mar 31 2020	n/a	n/a	US$21m
Dec 31 2019	US$3m	US$615k	-US$830k
Sep 30 2019	n/a	n/a	-US$10m
Jun 30 2019	n/a	n/a	-US$46m
Mar 31 2019	n/a	n/a	-US$49m
Dec 31 2018	US$2m	US$600k	-US$89m
Sep 30 2018	n/a	n/a	-US$187m
Jun 30 2018	n/a	n/a	-US$161m
Mar 31 2018	n/a	n/a	-US$153m
Dec 31 2017	US$2m	US$525k	-US$106m
Sep 30 2017	n/a	n/a	-US$73m
Jun 30 2017	n/a	n/a	-US$102m
Mar 31 2017	n/a	n/a	-US$60m
Dec 31 2016	US$2m	US$525k	-US$18m
Sep 30 2016	n/a	n/a	US$77m
Jun 30 2016	n/a	n/a	US$180m
Mar 31 2016	n/a	n/a	US$197m
Dec 31 2015	US$2m	US$525k	US$173m

Compensation vs Market: Lois's total compensation ($USD3.05M) is below average for companies of similar size in the US market ($USD5.58M).

Compensation vs Earnings: Lois's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: INSW's management team is seasoned and experienced (5.9 years average tenure).

Board Members

Experienced Board: INSW's board of directors are considered experienced (5.6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: INSW insiders have only sold shares in the past 3 months.

Recent Insider Transactions

NYSE:INSW Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Shares	Max Price
09 Sep 22	SellUS$504,751	Ian Blackley	Individual	15,499	US$32.57
29 Aug 22	SellUS$617,058	Douglas Wheat	Individual	20,000	US$30.85
11 Aug 22	SellUS$42,982	Adewale Oshodi	Individual	1,495	US$28.75
15 Jun 22	SellUS$156,750	James Small	Individual	7,000	US$22.39
10 Jun 22	SellUS$444,224	James Small	Individual	19,000	US$23.38
04 May 22	BuyUS$4,894,991	Greenwich Holdings Ltd.	Company	231,308	US$21.71
27 Apr 22	BuyUS$173,005,348	Greenwich Holdings Ltd.	Company	8,035,548	US$21.53
21 Apr 22	SellUS$21,051,429	Cyrus Capital Partners, L.P.	Company	975,000	US$21.65
12 Apr 22	SellUS$19,877,574	Cyrus Capital Partners, L.P.	Company	1,000,000	US$20.18
01 Dec 21	BuyUS$21,184	William Nugent	Individual	1,500	US$14.12
09 Nov 21	SellUS$838,050	Cyrus Capital Partners, L.P.	Company	44,200	US$18.97

Ownership Breakdown

What is the ownership structure of INSW?
Owner Type	Number of Shares	Ownership Percentage
Individual Insiders	717,803	1.4%
General Public	4,156,362	8.4%
Private Companies	8,381,931	16.9%
Institutions	36,439,636	73.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 76.04% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
16.63%	Greenwich Holdings Ltd.	8,266,856	$290.4m	0%	no data
7.3%	The Vanguard Group, Inc.	3,628,381	$127.5m	4.71%	no data
6.74%	Donald Smith & Co., Inc.	3,350,925	$117.7m	-6.17%	5%
6.68%	BlackRock, Inc.	3,321,997	$116.7m	1.27%	no data
4.59%	Cobas Asset Management, SGIIC, SA	2,282,537	$80.2m	-46.81%	5.79%
4.27%	Dimensional Fund Advisors LP	2,121,398	$74.5m	15.4%	0.02%
3.54%	Cyrus Capital Partners, L.P.	1,760,167	$61.8m	-55.83%	18.67%
2.95%	T. Rowe Price Group, Inc.	1,467,700	$51.6m	-30.6%	0.01%
2.79%	azValor Asset Management SGIIC, S.A.U.	1,385,235	$48.7m	0%	2.86%
2.29%	Brightlight Capital Management LP	1,137,000	$39.9m	0%	25.91%
2.22%	State Street Global Advisors, Inc.	1,101,570	$38.7m	3.4%	no data
1.62%	Millennium Management LLC	804,101	$28.2m	0%	0.04%
1.58%	Geode Capital Management, LLC	785,060	$27.6m	-0.26%	no data
1.31%	Frontier Capital Management Co LLC	649,826	$22.8m	-28.69%	0.23%
1.31%	Private Management Group, Inc.	649,373	$22.8m	-7.39%	1.08%
1.26%	Charles Schwab Investment Management, Inc.	626,887	$22.0m	-2.17%	0.01%
1.25%	Loomis Sayles & Company, L.P.	622,082	$21.9m	-0.28%	0.04%
1.15%	Hamblin Watsa Investment Counsel Ltd.	572,954	$20.1m	0%	0.98%
1.02%	Northern Trust Global Investments	507,975	$17.8m	3.4%	no data
0.96%	Hosking Partners LLP	478,211	$16.8m	-15.65%	0.56%
0.95%	Thompson, Siegel & Walmsley LLC	472,685	$16.6m	-20.52%	0.21%
0.91%	Bridgeway Capital Management, LLC	453,983	$15.9m	-31.82%	0.37%
0.91%	Mangrove Partners	453,071	$15.9m	28.64%	1.3%
0.9%	Greenlight Capital, Inc.	449,130	$15.8m	-56.1%	1.12%
0.89%	Pendal Group Limited	441,193	$15.5m	-21.41%	0.14%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
INSW	NYSE (New York Stock Exchange)	Yes	Common Stock	US	USD	Dec 2016
IS5	DB (Deutsche Boerse AG)	Yes	Common Stock	DE	EUR	Dec 2016
INSW N	BMV (Bolsa Mexicana de Valores)	Yes	Common Stock	MX	MXN	Dec 2016

Data	Last Updated (UTC time)
Company Analysis	2022/10/02 00:00
End of Day Share Price	2022/09/30 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31