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SFL Corporation
(NYSE:SFL)
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Rating:59Neutral
Price Target:
$14.00
▲(14.57% Upside)
Action:Reiterated
Date:08/27/26
The score is held back primarily by high leverage and uneven historical cash-flow conversion, despite a TTM earnings recovery. The earnings call adds support via strong fleet utilization and a large, high-quality charter backlog, but sizable remaining newbuild capex and energy-segment timing risk temper the outlook. Technically the stock shows a constructive longer-term trend with neutral momentum, while valuation is mixed: a high dividend yield is offset by a high P/E.
Positive Factors
Long-term charter backlog
Long-duration fixed-rate charters provide recurring revenue visibility and reduce exposure to short-term freight-rate swings. The Hapag-Lloyd extensions also deepen customer relationships and support more dependable cash generation for debt service, reinvestment, and shareholder distributions over several years.
Negative Factors
High financial leverage
Elevated leverage leaves SFL more exposed when vessel values, charter rates, or utilization weaken. Debt service and refinancing needs can absorb cash that might otherwise fund fleet renewal or distributions, while the cyclical shipping environment makes financial flexibility particularly important.
Read all positive and negative factors
Positive Factors
Negative Factors
Long-term charter backlog
Long-duration fixed-rate charters provide recurring revenue visibility and reduce exposure to short-term freight-rate swings. The Hapag-Lloyd extensions also deepen customer relationships and support more dependable cash generation for debt service, reinvestment, and shareholder distributions over several years.
Read all positive factors
SFL Corporation Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down where revenue actually comes from—different types of shipping, asset leasing, or investment income—revealing which businesses are growing and which are lagging. Shifts in segment mix can change profit margins and risk profile, helping investors assess sustainability of earnings and future growth drivers.
Breaks down where revenue actually comes from—different types of shipping, asset leasing, or investment income—revealing which businesses are growing and which are lagging. Shifts in segment mix can change profit margins and risk profile, helping investors assess sustainability of earnings and future growth drivers.
Data provided by:
The Fly
The FlySFL Corporation (SFL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.01B
Dividend Yield6.3%
Average Volume (3M)1.41M
Price to Earnings (P/E)27.8
Beta (1Y)0.55
Revenue Growth-15.61%
EPS Growth81.02%
CountryUS
Employees24
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.47
Shares Outstanding150,435,420
10 Day Avg. Volume1,235,500
30 Day Avg. Volume1,414,666
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.08
Price to Sales (P/S)1.44
P/FCF Ratio4.73
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue5.05
Enterprise Value/Gross Profit13.29
Enterprise Value/Ebitda8.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.47
Revenue Forecast (FY)$715.05M
SFL Corporation Business Overview & Revenue Model
Company Description
SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. The company operates in various sec...
How the Company Makes Money
SFL Corporation primarily makes money by owning maritime/offshore vessels and contracting them out to customers under charter agreements, generating contracted charter hire (lease-like) revenue. Key revenue streams generally include (1) time chart...
SFL Corporation Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a strong operational and financial quarter: revenue and EBITDA grew meaningfully quarter-over-quarter, utilization across core shipping segments was excellent, the charter backlog and counterparty quality provide multi-year cash flow visibility, and spot tanker performance produced significant upside. Management is investing in growth (notably LNG dual-fuel car carriers) and has actively raised capital while managing debt maturities. Offsetting this are sizable remaining newbuilding capex commitments (~$1.2B), energy-segment timing risk (Hercules warm stacked until 2027), reporting volatility from spot revenue recognition, and dilution from a $100M equity raise. Overall, positive momentum and balance-sheet actions outweigh the execution and funding risks, but the company faces notable near-term capital and timing challenges.Positive Updates
Quarterly Revenue and Profitability Growth
Reported operating revenues of $201M in Q2 versus $174.5M in Q1 (+15.2%). Adjusted EBITDA / EBITDA-equivalent cash flow was ~$130M, ~20% higher than Q1 (from ~$108M). Net income increased to ~$34M ($0.25 per share) from ~$26M ($0.20) in Q1 (+30.8%). Last twelve months EBITDA was $461M.
Negative Updates
Large Remaining Newbuilding CapEx
Approximately $1.2B of remaining capital expenditures across five container vessels and four PCTC newbuildings. Seven of those have long-term charters, leaving funding, delivery timing and chartering risk for the balance.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue and Profitability Growth
Reported operating revenues of $201M in Q2 versus $174.5M in Q1 (+15.2%). Adjusted EBITDA / EBITDA-equivalent cash flow was ~$130M, ~20% higher than Q1 (from ~$108M). Net income increased to ~$34M ($0.25 per share) from ~$26M ($0.20) in Q1 (+30.8%). Last twelve months EBITDA was $461M.
Read all positive updates
Company Guidance
The management’s forward-looking guidance reiterated strong cash‑flow visibility and disciplined growth: Q2 results of $201m revenues, ~$199m gross charter hire and ~$130m adjusted EBITDA (LTM EBITDA ~$461m), net income $34m ($0.25/share) and a declared dividend of $0.22/share (90th consecutive, >$3.0bn cumulative, >$32/share returned; ~7% annualized yield) underpin a $3.8bn charter backlog (≈65% with investment‑grade counterparties) and a diversified 61‑asset portfolio (30 container, 16 tankers, 11 PCTC, 2 dry bulk, 2 rigs). Key operational and liquidity metrics cited include utilization: container 99.3%, car carriers 100%, tankers 99.8%, dry bulk 99.4%, energy 50%; ~4,620 operating days; gross charter hire split: container ~$83m, car carriers ~$27m, tankers ~$62m; Suezmax spot TCE ~$133k/day in Q2 (vs $54k in Q1) and ~63% of Q3 days covered at ~$93k/day; Handymax ~$16.1k/day (vs $10.7k); shipping OpEx ~$37m, net operating & G&A ~$69m; energy revenue ~$24m. Capital and financing guidance: $100m equity raised via ATM/DRIP (8.8m shares issued), $113m cash + $160m undrawn facilities (> $270m liquidity), book equity ratio ~29%, $75m 2030 bond tap at 103.5 (~6.8% yield) and $150m bond redeemed; remaining newbuild capex ≈$1.2bn (nine newbuilds—five containers + four PCTC, yard cost for four PCTCs ≈$360m; seven of nine have charters; PCTC first fixed five‑year adds $150m backlog, up to $300m with options). Management expects to find charters for the two open PCTC newbuilds (yards largely sold out into 2030), will seek longer‑term employment for the high‑cash‑generating Suezmaxes, expects Hercules to start contributing H1 2027 while Linus is contracted through May 2029, and states no plans for further share issuance in the foreseeable future.SFL Corporation Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
45
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 721.18M | 719.75M | 891.62M | 738.13M | 655.65M | 494.70M |
| Gross Profit | 273.74M | 417.98M | 309.14M | 230.32M | 262.68M | 199.64M |
| EBITDA | 455.07M | 421.39M | 560.09M | 466.23M | 507.93M | 393.06M |
| Net Income | 63.85M | -26.43M | 130.65M | 83.94M | 202.77M | 164.34M |
Balance Sheet | ||||||
| Total Assets | 3.52B | 3.64B | 4.11B | 3.73B | 3.86B | 3.46B |
| Cash, Cash Equivalents and Short-Term Investments | 118.12M | 154.97M | 138.29M | 170.60M | 195.65M | 166.83M |
| Total Debt | 2.38B | 2.57B | 2.84B | 2.57B | 2.67B | 2.41B |
| Total Liabilities | 2.48B | 2.68B | 2.98B | 2.69B | 2.77B | 2.48B |
| Stockholders Equity | 1.04B | 960.86M | 1.13B | 1.04B | 1.09B | 982.33M |
Cash Flow | ||||||
| Free Cash Flow | 217.75M | 219.66M | -275.00M | 78.67M | -247.37M | -288.03M |
| Operating Cash Flow | 263.81M | 290.14M | 369.86M | 343.09M | 355.13M | 293.60M |
| Investing Cash Flow | 191.56M | 165.09M | -617.50M | -103.89M | -499.09M | -389.05M |
| Financing Cash Flow | -498.08M | -438.96M | 216.70M | -262.06M | 178.37M | 25.02M |
SFL Corporation Technical Analysis
Positive
12.22
Price Trends
12.58
Positive
11.84
Positive
10.76
Positive
Market Momentum
0.24
Positive
56.71
Neutral
72.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFL, the sentiment is Positive. The current price of 12.22 is below the 20-day moving average (MA) of 13.25, below the 50-day MA of 12.58, and above the 200-day MA of 10.76, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 72.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFL.
SFL Corporation Risk Analysis
SFL Corporation disclosed 58 risk factors in its most recent earnings report. SFL Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SFL Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.61B | 4.29 | 20.88% | 5.61% | 5.55% | -3.50% | |
81 Outperform | $2.63B | 6.08 | 13.13% | 0.24% | 13.38% | 52.73% | |
75 Outperform | $1.46B | 10.93 | 11.48% | 1.17% | 8.39% | 72.16% | |
74 Outperform | $1.64B | 16.23 | 14.38% | 9.73% | 1.30% | 3.49% | |
66 Neutral | $1.83B | 5.75 | 15.97% | 3.11% | -52.60% | 11.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $2.01B | 27.79 | 6.46% | 6.30% | -15.61% | 81.02% |
* Industrials Sector Average
SFL
SFL Corporation
13.34
6.94
108.57%
CMRE
Costamare
15.12
4.22
38.73%
GSL
Global Ship Lease
44.58
18.54
71.18%
NMM
Navios Maritime Partners
93.06
48.22
107.56%
NVGS
Navigator Holdings
23.93
9.60
67.02%
FLNG
FLEX LNG
30.84
8.92
40.71%
SFL Corporation Corporate Events
SFL Corporation to Sell Seven Tankers to Trafigura, Unlocking $275 Million in Cash Gains
Oct 7, 2026
SFL Corporation Ltd. on October 7, 2026, announced it has agreed to sell four LR2 product tankers built in 2014–2015 and three Suezmax tankers built in 2019, all currently employed on time charters to commodities giant Trafigura. The vessels...
SFL Corporation Orders Two Very Large Ammonia Carriers on Long-Term Charter to Oil Major
Oct 5, 2026
On October 5, 2026, SFL Corporation announced an order for two 93,000 cbm Very Large Ammonia Carriers capable of transporting a wide range of petrochemical gases, featuring dual-fuel propulsion and advanced fuel-efficiency and cargo optimization t...
SFL Corporation Adds $750 Million to Charter Backlog with Hapag-Lloyd Extension
Sep 11, 2026
SFL Corporation said on September 11, 2026 that it has agreed to extend charters for six 15,400 TEU container vessels with Hapag-Lloyd AG for an additional seven years. The extensions will keep the vessels on fixed-rate contracts through 2035̵...
SFL Corporation Files Mid‑Year 2026 Unaudited Results on Form 6‑K
Aug 26, 2026
For the six months ended June 30, 2026, SFL reported unaudited condensed interim financial statements showing a shift in its revenue mix, with time charter revenues declining year-on-year while voyage charter and pool revenues rose sharply and dri...
SFL Corporation Posts Solid Q2 2026 Results and Extends Car Carrier Charter Backlog
Aug 26, 2026
SFL Corporation announced on August 26, 2026, its preliminary financial results for the quarter ended June 30, 2026, reporting U.S. GAAP operating revenues of $201 million and net income of $34 million, or $0.25 per share. The quarter saw strong s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.