NYSE:SFL

Stock Analysis Report

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Executive Summary

SFL Corporation Ltd. engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has SFL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SFL's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

SFL

8.6%

US Oil and Gas

2.1%

US Market


1 Year Return

-50.0%

SFL

-31.2%

US Oil and Gas

19.8%

US Market

Return vs Industry: SFL underperformed the US Oil and Gas industry which returned -31.1% over the past year.

Return vs Market: SFL underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

SFLIndustryMarket
7 Day1.4%8.6%2.1%
30 Day5.5%29.6%8.1%
90 Day-19.8%8.3%6.0%
1 Year-44.2%-50.0%-26.5%-31.2%22.5%19.8%
3 Year-36.8%-53.9%-32.8%-42.0%46.5%36.8%
5 Year-27.8%-58.4%-21.8%-37.3%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is SFL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SFL undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFL ($7.14) is trading below our estimate of fair value ($18.39)

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


Price To Earnings Ratio

PE vs Industry: SFL is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: SFL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SFL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SFL is good value based on its PB Ratio (0.8x) compared to the US Oil and Gas industry average (1x).


Next Steps

Future Growth

How is SFL forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

123.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

High Growth Earnings: SFL's is expected to become profitable in the next 3 years.

Revenue vs Market: SFL's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: SFL's revenue is forecast to decline over the next 3 years (-3.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFL's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has SFL performed over the past 5 years?

-38.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFL is currently unprofitable.

Growing Profit Margin: SFL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SFL is unprofitable, and losses have increased over the past 5 years at a rate of 38.1% per year.

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

Earnings vs Industry: SFL is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-29.6%).


Return on Equity

High ROE: SFL has a negative Return on Equity (-3.83%), as it is currently unprofitable.


Next Steps

Financial Health

How is SFL's financial position?


Financial Position Analysis

Short Term Liabilities: SFL's short term assets ($369.0M) do not cover its short term liabilities ($406.7M).

Long Term Liabilities: SFL's short term assets ($369.0M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: SFL's debt to equity ratio (164%) is considered high.

Reducing Debt: SFL's debt to equity ratio has increased from 159.3% to 164% over the past 5 years.

Debt Coverage: SFL's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: SFL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is SFL current dividend yield, its reliability and sustainability?

8.40%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SFL's dividend (8.4%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SFL's dividend (8.4%) is in the top 25% of dividend payers in the US market (4.05%)


Stability and Growth of Payments

Stable Dividend: SFL's dividend payments have been volatile in the past 10 years.

Growing Dividend: SFL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: SFL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SFL's dividends in 3 years are forecast to be covered by earnings (82% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Ole Hjertaker (53 yo)

11.33yrs

Tenure

Mr. Ole Bjarte Hjertaker serves as Director of SFL Corporation Ltd. since Octber 28, 2019. Mr. Hjertaker has been the Principal Executive Officer of SFL Management AS, a subsidiary of SFL Corporation Ltd. ...


Leadership Team

NamePositionTenureCompensationOwnership
Ole Hjertaker
Principal Executive Officer of SFL Management AS & Director11.33yrsno data0.084%
$ 655.8k
Aksel Olesen
Chief Financial Officer of SFL Management AS1.83yrsno datano data
Trym Sjølie
Chief Operating Officer2.83yrsno datano data
Thecla Panagides
Chief Accounting Officer10.33yrsno datano data
Marius Furuly
Vice President of Finance & Investor Relations0.25yrno datano data
Jannicke Eilertsen
Compliance Officer0.25yrno datano data
André Reppen
Senior VP & Chief Treasurerno datano datano data
James Ayers
Company Secretaryno datano datano data

2.3yrs

Average Tenure

43yo

Average Age

Experienced Management: SFL's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ole Hjertaker
Principal Executive Officer of SFL Management AS & Director11.33yrsno data0.084%
$ 655.8k
James O'Shaughnessy
Independent Director2.17yrsno datano data
Gary Vogel
Independent Director3.92yrsno datano data
Kathrine Fredriksen
Director0.75yrno datano data
Kornelis Cordia
Director2.17yrsno datano data

2.2yrs

Average Tenure

53yo

Average Age

Experienced Board: SFL's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

SFL Corporation Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SFL Corporation Ltd.
  • Ticker: SFL
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$779.267m
  • Shares outstanding: 109.14m
  • Website: https://www.sflcorp.com

Number of Employees


Location

  • SFL Corporation Ltd.
  • Par-la-Ville Place
  • 14 Par-la-Ville Road
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFLNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 2004
UG6DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2004

Biography

SFL Corporation Ltd. engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. It is also involved in the charter, purchase, and sale ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:31
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.