Scorpio Tankers (STNG) AI Stock Analysis

• Market Cap: $2.88B
• Dividend Yield: 2.79%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.52
• Revenue Growth: -34.54%
• EPS Growth: -42.46%
• Country: US
• Employees: 24
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.41
• Shares Outstanding: 51,016,290
• 10 Day Avg. Volume: 1,033,304
• 30 Day Avg. Volume: 1,055,391
• PEG Ratio: 0.11
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 3.30
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: 3.80
• 1Y Price Target: $66.60
• Price Target Upside: 16.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $63.00 ▲(9.95% Upside)

Scorpio Tankers receives a strong overall score due to its robust financial performance, attractive valuation, and positive technical indicators. The earnings call further supports this with optimistic guidance and strategic improvements. However, challenges such as declining revenue and geopolitical uncertainties temper the outlook.

Positive Factors

Debt Reduction

Reducing net debt to zero enhances financial stability and flexibility, allowing for strategic investments and resilience against market fluctuations.

Operational Efficiency

Enhancing fleet efficiency through regular maintenance supports operational reliability and cost management, crucial for sustaining competitive advantage.

Positive Market Outlook

Increased demand for tankers due to OPEC production boosts positions Scorpio Tankers to capitalize on favorable market conditions, supporting revenue growth.

Negative Factors

Declining Revenue

A decline in revenue can impact profitability and growth potential, challenging the company to adapt strategies to stabilize and increase revenue streams.

Geopolitical Risks

Geopolitical tensions can disrupt supply chains and market stability, posing risks to operational continuity and financial performance.

Free Cash Flow Decline

Reduced free cash flow limits the company's ability to invest in growth opportunities and manage debt, potentially affecting long-term financial health.

Scorpio Tankers Business Overview & Revenue Model

Company Description

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products in the shipping markets worldwide. As of March 18, 2022, the company's fleet consisted of 124 owned, finance leased, or bareboat chartered-in tankers, including 42 LR2, 6 LR1, 62 MR, and 14 Handymax with a weighted average age of approximately 6.2 years. Scorpio Tankers Inc. was incorporated in 2009 and is based in Monaco.

How the Company Makes Money

Scorpio Tankers generates revenue primarily through the time and voyage chartering of its fleet. The company earns money by leasing its vessels to third parties for predetermined periods (time charters) or for specific voyages (voyage charters), with rates typically influenced by market conditions, shipping demand, and operational costs. Additionally, Scorpio Tankers may engage in spot market transactions, which can yield higher returns in favorable market conditions. The company's revenue model is supported by its strong operational efficiency, strategic fleet management, and a focus on maintaining a competitive edge through modern, eco-friendly vessels. Partnerships with oil companies and refiners also contribute to stable business relationships and revenue opportunities.

Scorpio Tankers Financial Statement Overview

Summary

Scorpio Tankers demonstrates strong profitability with a high net profit margin and improved leverage management. However, challenges include declining revenue and free cash flow, which could impact future growth.

Income Statement

Scorpio Tankers shows strong profitability with a high net profit margin of 39.18% in TTM, although revenue has declined by 14.10%. The company maintains robust EBIT and EBITDA margins, indicating efficient operations despite the revenue drop.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.30 in TTM, reflecting better leverage management. Return on equity is healthy at 12.36%, though it has decreased from previous years, indicating a slight decline in profitability relative to equity.

Cash Flow

Operating cash flow remains strong with a high coverage ratio of 4.32 in TTM, but free cash flow has decreased by 27.56%, which could impact future investments. The free cash flow to net income ratio is solid at 0.84, showing good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	916.16M	1.24B	1.34B	1.56B	540.79M	915.89M
Gross Profit	440.70M	709.11M	809.89M	939.62M	-37.76M	328.37M
EBITDA	586.37M	955.11M	908.82M	1.00B	146.32M	490.86M
Net Income	358.98M	668.77M	546.90M	637.25M	-234.44M	94.12M
Balance Sheet
Total Assets	3.98B	3.83B	4.23B	4.56B	5.01B	5.16B
Cash, Cash Equivalents and Short-Term Investments	566.54M	406.74M	355.55M	376.87M	230.41M	187.51M
Total Debt	909.89M	861.97M	1.59B	1.93B	3.12B	3.05B
Total Liabilities	986.68M	967.77M	1.67B	2.05B	3.18B	3.09B
Stockholders Equity	2.99B	2.87B	2.55B	2.51B	1.84B	2.07B
Cash Flow
Free Cash Flow	404.93M	731.81M	842.40M	734.85M	26.20M	244.90M
Operating Cash Flow	522.80M	825.18M	865.49M	769.33M	73.30M	419.38M
Investing Cash Flow	176.58M	307.99M	43.61M	571.96M	-52.28M	-174.48M
Financing Cash Flow	-452.97M	-1.16B	-930.42M	-1.19B	21.88M	-259.70M

Scorpio Tankers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STNG, the sentiment is Positive. The current price of 57.3 is below the 20-day moving average (MA) of 58.19, above the 50-day MA of 51.64, and above the 200-day MA of 44.15, indicating a neutral trend. The MACD of 1.43 indicates Positive momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 34.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STNG.

Scorpio Tankers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSW	77 Outperform	$2.27B	9.58	12.57%	6.94%	-22.01%	-54.34%
TNK	76 Outperform	$1.73B	6.23	22.98%	3.89%	-21.71%	-37.58%
STNG	75 Outperform	$2.88B	7.54	12.13%	2.79%	-34.54%	-42.46%
DHT	75 Outperform	$1.88B	9.93	17.48%	6.58%	-8.89%	21.28%
LPG	72 Outperform	$1.23B	25.07	4.73%	10.88%	-42.64%	-84.82%
GEL	45 Neutral	$1.98B	-10.40	-191.96%	4.07%	-28.72%	-1173.53%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Scorpio Tankers Corporate Events

Scorpio Tankers Announces Sale of Two LR2 Product Tankers and Debt Update

On September 29, 2025, Scorpio Tankers Inc. announced agreements to sell two 2019 built LR2 product tankers, STI Lobelia and STI Lavender, for $61.2 million each, with sales expected to close in the fourth quarter of 2025. This move is part of the company’s strategy to capitalize on high secondhand vessel values while reducing its net debt, which could potentially reach zero. The company also provided updates on its outstanding debt and liquidity, highlighting the impact of these sales and other financial maneuvers on its balance sheet.

Scorpio Tankers Expands Equity Incentive Plan with 748,000 Additional Shares

On September 21, 2025, Scorpio Tankers Inc. announced a resolution by its Board of Directors to increase the number of shares of Common Stock available for issuance under its Amended and Restated 2013 Equity Incentive Plan by 748,000 shares. This decision reflects the company’s strategy to enhance its equity incentive offerings, potentially impacting its market positioning by attracting and retaining talent, which is crucial for its operations and growth in the competitive shipping industry.

Scorpio Tankers Announces Sale of STI Maestro for $42 Million

Scorpio Tankers Inc. announced on September 9, 2025, that it has entered into an agreement to sell its 2020 built scrubber-fitted MR product tanker, STI Maestro, for $42 million. The sale is expected to close in the fourth quarter of 2025, potentially impacting the company’s fleet composition and financial position.

Scorpio Tankers Announces New Charter Agreement and TCE Rate Update

On September 3, 2025, Scorpio Tankers Inc. announced a new time charter-out agreement for its 2014 built LR2 product tanker, STI Orchard, at a rate of $28,350 per day for five years starting in the third quarter of 2025. The company also provided an update on its average daily Time Charter Equivalent (TCE) rates for the third quarter of 2025, highlighting its operational performance and market positioning. These developments are likely to impact the company’s revenue streams and reinforce its standing in the marine transportation industry.

Scorpio Tankers Releases Mid-Year Financial Results for 2025

Scorpio Tankers Inc. released its unaudited interim condensed consolidated financial statements for the six-month period ending June 30, 2025. The report, filed with the U.S. Securities and Exchange Commission, includes a management discussion and analysis of the company’s financial condition and results of operations. This release provides stakeholders with insights into the company’s financial performance and strategic direction, impacting its market positioning and investor relations.

Scorpio Tankers Reports Q2 2025 Financial Results and Announces Dividend

On July 30, 2025, Scorpio Tankers Inc. announced its financial results for the second quarter of 2025, reporting a net income of $73.5 million, which is a significant decrease compared to the $227.3 million reported for the same period in 2024. The company declared a quarterly cash dividend of $0.40 per share, payable on August 29, 2025. Additionally, Scorpio Tankers has entered into a new bareboat charter-out agreement for the MR product tanker, STI Bosphorus, which will participate in the U.S. Government’s Tanker Security Program. The company also exercised purchase options on three vessels and fitted one of its LR2 product tankers with carbon capture technology, reflecting its strategic initiatives to enhance operational efficiency and sustainability.