Scorpio Tankers Stock Analysis, Valuation (NYSE:STNG)
Scorpio Tankers Stock Analysis
View Scorpio Tankers stock analysis video. This is our analyst opinion covering the buy and sell arguments for STNG stock.
Scorpio Tankers Inc. Stock Rating 2/5
Our Scorpio Tankers stock opinion is based on fundamentals of the company. This Scorpio Tankers stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you buy STNG stock?
- Long term revenue growth has been strong with a 5 year compounded annual growth of 35.8%.
- Scorpio Tankers's dividend yield of 7.92% is attractive.
- The company has a good Free Cash Flow (FCF) margin of 51.5%.
Should you sell STNG stock?
- Scorpio Tankers revenue saw a decline of -13.7% YoY in 2017 Q2.
- Scorpio Tankers registered a negative operating margin of -7.9% (average) over the Trailing Twelve Months (TTM).
- Over the last 12 months, Scorpio Tankers had an average Net loss of -29.6%.
- With a debt/equity ratio of 1.42, Scorpio Tankers is highly leveraged in comparison to Transportation peers.
- PE ratio is meaningless for STNG stock as the company has losses.
- The company has a negative Return on Invested Capital of -1.2%, which is a red flag.
- Scorpio Tankers has a negative return on equity of -10%. This indicates that the firm is inefficient at generating profits.