NYSE:STNG

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


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

-20.0%

STNG

-4.8%

US Oil and Gas

-4.2%

US Market


1 Year Return

-7.7%

STNG

-22.3%

US Oil and Gas

14.0%

US Market

Return vs Industry: STNG exceeded the US Oil and Gas industry which returned -18.9% 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-20.0%-4.8%-4.2%
30 Day-37.5%-10.0%-1.8%
90 Day-48.1%-11.0%2.6%
1 Year-6.2%-7.7%-19.2%-22.3%16.3%14.0%
3 Year-50.9%-52.9%-16.6%-24.5%43.2%34.0%
5 Year-75.6%-80.0%-23.9%-35.3%65.9%47.6%

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 ($19.87) is trading below our estimate of fair value ($91.81)

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


Price To Earnings Ratio

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

PE vs Market: STNG 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 STNG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: STNG is good value based on its PB Ratio (0.6x) 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 10 analysts?

72.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STNG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: STNG's revenue (16.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: STNG's revenue (16.8% per year) is forecast to grow slower than 20% 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 (11.5%).


Next Steps

Past Performance

How has Scorpio Tankers performed over the past 5 years?

-52.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STNG is currently unprofitable.

Growing Profit Margin: STNG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STNG is unprofitable, and losses have increased over the past 5 years at a rate of -52.8% per year.

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

Earnings vs Industry: STNG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.3%).


Return on Equity

High ROE: STNG has a negative Return on Equity (-2.45%), as it is currently unprofitable.


Next Steps

Financial Health

How is Scorpio Tankers's financial position?


Financial Position Analysis

Short Term Liabilities: STNG's short term assets ($303.0M) do not cover its short term liabilities ($486.2M).

Long Term Liabilities: STNG's short term assets ($303.0M) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: STNG's debt to equity ratio (62.5%) is considered high.

Reducing Debt: STNG's debt to equity ratio has reduced from 135.3% to 62.5% over the past 5 years.


Balance Sheet

Inventory Level: STNG has a high level of physical assets or inventory.

Debt Coverage by Assets: STNG's debt is not covered by short term assets (assets are 0.2x debt).


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: Whilst unprofitable STNG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: STNG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 58% per year.


Next Steps

Dividend

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

2.21%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 25 2020Ex Dividend DateFeb 28 2020Dividend Pay DateMar 13 202014 days from Ex DividendBuy in the next 2 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: STNG's dividend (2.01%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: STNG's dividend (2.01%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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: STNG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: STNG's dividends in 3 years are forecast to be thoroughly covered by earnings (8.4% payout ratio).


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

Emanuele Lauro (40yo)

9.8yrs

Tenure

Mr. Emanuele A. Lauro serves as Chairman, Chief Executive Officer and Secretary at Hermitage Offshore Services Ltd. He is a Co-Founder of Scorpio Bulkers Inc. and has been its Chairman and Chief Executive  ...


Leadership Team

NamePositionTenureCompensationOwnership
Emanuele Lauro
Founder9.8yrsno data1.62% $16.3m
Robert Bugbee
President & Director9.8yrsno data1.5% $15.1m
Brian Lee
Chief Financial Officer9.8yrsno data1.01% $10.1m
Cameron Mackey
COO & Director6.8yrsno data1.33% $13.3m
Yang Fan
Secretary1.2yrsno datano data

9.8yrs

Average Tenure

51yo

Average Age

Experienced Management: STNG's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Emanuele Lauro
Founder9.8yrsno data1.62% $16.3m
Robert Bugbee
President & Director9.8yrsno data1.5% $15.1m
Cameron Mackey
COO & Director6.8yrsno data1.33% $13.3m
Ademaro Lanzara
Lead Independent Director4.1yrsno datano data
Marianne Økland
Independent Director6.8yrsno datano data
Alexandre Albertini
Independent Director9.8yrsno datano data
Reidar Brekke
Independent Director3.2yrsno datano data
Jose Tarruella
Independent Director6.8yrsno datano data
Merrick Rayner
Independent Director2.4yrsno datano data

6.8yrs

Average Tenure

57yo

Average Age

Experienced Board: STNG's board of directors are considered experienced (6.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 43.2%.


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$1.003b
  • Shares outstanding: 55.31m
  • 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 worldwide. As of October 1, 2019, its owned or finance leased 124 product tankers, including 42 LR2 tankers, 12 LR1 tankers, 56 MR tankers, and 14 Handymax tankers with an average age of 3.7 years; and bareboat chartered-in 10 product tankers comprising 3 MR tankers and 7 Handymax tankers. The company was founded in 2009 and is based in Monaco. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:39
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.