NYSE:STNG

Stock Analysis Report

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Executive Summary

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products in the shipping markets worldwide. More Details


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: STNG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.5%

STNG

0.7%

US Oil and Gas

-0.8%

US Market


1 Year Return

-67.9%

STNG

-45.5%

US Oil and Gas

18.0%

US Market

Return vs Industry: STNG underperformed the US Oil and Gas industry which returned -47.5% over the past year.

Return vs Market: STNG underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

STNGIndustryMarket
7 Day-4.5%0.7%-0.8%
30 Day-3.9%2.3%6.8%
90 Day-17.8%-14.6%8.9%
1 Year-67.1%-67.9%-42.2%-45.5%20.7%18.0%
3 Year-66.9%-68.7%-45.3%-52.5%41.5%32.1%
5 Year-85.7%-88.0%-42.1%-53.3%84.6%63.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Scorpio Tankers 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: STNG ($10.94) is trading below our estimate of fair value ($54.71)

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


Price To Earnings Ratio

PE vs Industry: STNG is good value based on its PE Ratio (3.7x) compared to the US Oil and Gas industry average (7.5x).

PE vs Market: STNG is good value based on its PE Ratio (3.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: STNG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: STNG is good value based on its PB Ratio (0.3x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Scorpio Tankers forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STNG's earnings are forecast to decline over the next 3 years (-4.1% per year).

Earnings vs Market: STNG's earnings are forecast to decline over the next 3 years (-4.1% per year).

High Growth Earnings: STNG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: STNG's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: STNG's revenue is forecast to decline over the next 3 years (-1.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STNG's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Scorpio Tankers performed over the past 5 years?

-35.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STNG has high quality earnings.

Growing Profit Margin: STNG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: STNG has become profitable over the past 5 years, growing earnings by -35.9% per year.

Accelerating Growth: STNG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: STNG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-38%).


Return on Equity

High ROE: STNG's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Scorpio Tankers's financial position?


Financial Position Analysis

Short Term Liabilities: STNG's short term assets ($387.2M) do not cover its short term liabilities ($453.5M).

Long Term Liabilities: STNG's short term assets ($387.2M) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: STNG's debt to equity ratio (56.3%) is considered high.

Reducing Debt: STNG's debt to equity ratio has reduced from 136.5% to 56.3% over the past 5 years.

Debt Coverage: STNG's debt is well covered by operating cash flow (31.1%).

Interest Coverage: STNG's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is Scorpio Tankers's current dividend yield, its reliability and sustainability?

3.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STNG's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: STNG's dividend (3.66%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.5%), STNG's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STNG's dividends in 3 years are forecast to be well covered by earnings (20.4% payout ratio).


Next Steps

Management

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

10.5yrs

Average management tenure


CEO

Emanuele Lauro (41 yo)

10.5yrs

Tenure

Mr. Emanuele A. Lauro had been Chairman and Chief Executive Officer at Hermitage Offshore Services Ltd. since December 2018 and served as its Secretary. He is a Co-Founder of Scorpio Bulkers Inc. and has b ...


Leadership Team

NamePositionTenureCompensationOwnership
Emanuele Lauro
Founder10.5yrsno data1.66%
$ 10.0m
Robert Bugbee
President & Director10.5yrsno data2.2%
$ 13.2m
Brian Lee
Chief Financial Officer10.5yrsno data1.18%
$ 7.1m
Cameron Mackey
COO & Director7.42yrsno data1.37%
$ 8.2m
Yang Fan
Secretary1.83yrsno datano data
Lars Nielsen
Commercial Directorno datano datano data
David Morant
Managing Director - Scorpio UKno datano datano data

10.5yrs

Average Tenure

52yo

Average Age

Experienced Management: STNG's management team is seasoned and experienced (10.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Emanuele Lauro
Founder10.5yrsno data1.66%
$ 10.0m
Robert Bugbee
President & Director10.5yrsno data2.2%
$ 13.2m
Cameron Mackey
COO & Director7.42yrsno data1.37%
$ 8.2m
Ademaro Lanzara
Lead Independent Director4.75yrsno datano data
Marianne Økland
Independent Director7.5yrsno datano data
Alexandre Albertini
Independent Director10.5yrsno datano data
Reidar Brekke
Independent Director3.83yrsno datano data
Jose Tarruella
Independent Director7.42yrsno datano data
Merrick Rayner
Independent Director3.08yrsno datano data

7.4yrs

Average Tenure

58yo

Average Age

Experienced Board: STNG's board of directors are considered experienced (7.4 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Scorpio Tankers Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Scorpio Tankers Inc.
  • Ticker: STNG
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$600.061m
  • Shares outstanding: 54.85m
  • Website: https://www.scorpiotankers.com

Number of Employees


Location

  • Scorpio Tankers Inc.
  • Le Millenium
  • 9, Boulevard Charles III
  • Monaco
  • 98000
  • Monaco

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STNGNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2010
S0QADB (Deutsche Boerse AG)YesCommon StockDEEURMar 2010
S0QABST (Boerse-Stuttgart)YesCommon StockDEEURMar 2010
STNG NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 2010

Biography

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products in the shipping markets worldwide. As of March 27, 2020, it owned, finance leased, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 23:41
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.