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

Fundamentals

Reasonable growth potential and slightly overvalued.


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


Market Performance


7 Day Return

2.6%

STNG

0.8%

US Oil and Gas

2.3%

US Market


1 Year Return

101.3%

STNG

-22.2%

US Oil and Gas

5.6%

US Market

Return vs Industry: STNG exceeded the US Oil and Gas industry which returned -22.2% over the past year.

Return vs Market: STNG exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

STNGIndustryMarket
7 Day2.6%0.8%2.3%
30 Day15.3%-7.9%-1.0%
90 Day26.5%-8.3%-0.7%
1 Year104.9%101.3%-19.3%-22.2%7.9%5.6%
3 Year-16.8%-22.4%-8.2%-16.4%45.6%36.3%
5 Year-45.5%-55.7%-23.7%-34.3%65.8%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

Undervalued: STNG ($35.22) is trading below our estimate of fair value ($93.28)

Significantly Undervalued: 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

Low 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 overvalued based on its PB Ratio (0.9x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Scorpio Tankers forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

80.4%

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 (2.7%).

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

High Growth Earnings: STNG's loss is forecast to worsen by 0% next year.

Revenue vs Market: STNG's revenue (13.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: STNG's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: STNG's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Scorpio Tankers performed over the past 5 years?

-57.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STNG is unprofitable, and losses have increased over the past 5 years at a rate of -57.2% 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 (22.6%).


Return on Equity

High ROE: STNG has a negative Return on Equity (-5.73%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: STNG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: STNG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Scorpio Tankers's financial position?


Financial Position Analysis

Short Term Liabilities: STNG's short term assets ($548.3M) exceeds its short term liabilities ($476.5M)

Long Term Liabilities: STNG's short term assets (548.3M) do not cover its long term liabilities (2.4B)


Debt to Equity History and Analysis

Debt Level: STNG's debt to equity ratio (76.2%) is considered high

Reducing Debt: STNG's debt to equity ratio has increased from 61% to 76.2% over the past 5 years.

Debt Coverage: STNG's debt is not well covered by operating cash flow (9.1%).

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


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 0.4x debt).


Next Steps

Dividend

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

1.14%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%3.8%industryaverage4.2%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STNG's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: STNG's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 (9.2% payout ratio).


Next Steps

Management

What is the CEO of Scorpio Tankers's salary, the management and board of directors tenure and is there insider trading?

9.5yrs

Average management tenure


CEO

Emanuele Lauro (40yo)

9.5yrs

Tenure

0

Mr. Emanuele A. Lauro is the Chairman and Chief Executive Officer of Nordic American Offshore Ltd. since December 11, 2018 and serves as its Secretary. He is a Co-Founder of Scorpio Bulkers Inc. and has be ...


Management Age and Tenure

9.5yrs

Average Tenure

51yo

Average Age

Experienced Management: STNG's management team is seasoned and experienced (9.5 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

57yo

Average Age

Experienced Board: STNG's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Robert Bugbee (59yo)

    President & Director

    • Tenure: 9.5yrs
  • Cam Mackey (51yo)

    COO & Director

    • Tenure: 6.4yrs
  • Emanuele Lauro (40yo)

    Founder

    • Tenure: 9.5yrs
  • Brian Lee (52yo)

    Chief Financial Officer

    • Tenure: 9.5yrs
  • Yang Fan (30yo)

    Secretary

    • Tenure: 0.8yrs

Board Members

  • Robert Bugbee (59yo)

    President & Director

    • Tenure: 9.5yrs
  • Ademaro Lanzara (76yo)

    Lead Independent Director

    • Tenure: 3.8yrs
  • Cam Mackey (51yo)

    COO & Director

    • Tenure: 6.4yrs
  • Marianne Økland (57yo)

    Independent Director

    • Tenure: 6.5yrs
  • Emanuele Lauro (40yo)

    Founder

    • Tenure: 9.5yrs
  • Alexandre Albertini (42yo)

    Independent Director

    • Tenure: 9.5yrs
  • Reidar Brekke (58yo)

    Independent Director

    • Tenure: 2.8yrs
  • Jose Tarruella (48yo)

    Independent Director

    • Tenure: 6.4yrs
  • Merrick Rayner (63yo)

    Independent Director

    • Tenure: 2.1yrs

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$1.929b
  • Shares outstanding: 54.78m
  • 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

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:11
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.