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International Seaways Inc (INSW)
NYSE:INSW
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International Seaways
(NYSE:INSW)
Rating:80Outperform
Price Target:
$44.00
â–²(10.25%Upside)
International Seaways (INSW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.97B
Dividend Yield6.01%
Average Volume (3M)627.26K
Price to Earnings (P/E)6.2
Beta (1Y)0.43
Revenue Growth-18.74%
EPS Growth-39.64%
CountryUS
Employees2,899
SectorEnergy
Sector Strength72
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.80
Shares Outstanding49,338,203
10 Day Avg. Volume600,755
30 Day Avg. Volume627,258
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.30
Price to Sales (P/S)0.00
P/FCF Ratio4.62
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit5.64
Enterprise Value/Ebitda0.96
Forecast
1Y Price Target
$48.00Price Target Upside20.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
International Seaways Business Overview & Revenue Model
Company DescriptionInternational Seaways, Inc. (INSW) is a leading provider of ocean transportation services for crude oil and petroleum products. The company operates a diverse fleet of vessels, including Very Large Crude Carriers (VLCCs), Suezmaxes, Aframaxes, and Panamaxes, that are utilized to transport crude oil and refined petroleum products worldwide. With a strategic focus on safety, operational efficiency, and environmental stewardship, International Seaways serves a customer base that includes major oil companies, refiners, and traders.
How the Company Makes MoneyInternational Seaways generates revenue primarily through the chartering of its vessels to customers in the global oil transportation industry. The company employs various chartering arrangements, such as time charters, voyage charters, and pool arrangements, to optimize fleet utilization and maximize earnings. Time charters provide predictable revenue streams by leasing vessels for fixed periods at agreed-upon rates, while voyage charters offer flexibility with earnings based on single-trip contracts. Additionally, the company may engage in spot market charters, where vessels are contracted for single voyages based on current market rates. Partnerships and alliances with other shipping firms often enhance operational efficiency and expand market reach, further contributing to the company's revenue.
International Seaways Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 11.61%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant shareholder returns and a positive outlook for tanker demand. Despite geopolitical uncertainties and fleet aging concerns, the company's liquidity position and strategy for fleet renewal are strong. The highlights notably outweigh the lowlights, indicating a robust business environment and positive growth prospects.Q1-2025 Updates
Positive Updates
Strong Net Income and Adjusted EBITDA
Net income for the first quarter was $50 million, or $1 per diluted share. Excluding gains on vessel sales, adjusted net income was $40 million, or $0.80 per diluted share. Adjusted EBITDA was $91 million, in line with the previous quarter.
Increased Time Charter and Fixed Revenue
Agreed on a one-year time charter on one Suezmax to reach $295 million in fixed revenue, most of which comes over the next two years.
Dividend Announcement and Shareholder Returns
Announced another dividend representing 75% of adjusted net income, with a combined dividend to be paid in June equating to $0.60 per share. Returned over $300 million to shareholders in consecutive years.
Strong Liquidity Position
Ended the first quarter with $673 million in total liquidity, including almost $550 million of undrawn revolver capacity.
Positive Outlook for Tanker Demand
Oil production in 2025 and 2026 is expected to increase by over 1 million barrels per day, supporting tanker demand. Changes in tanker routing are also supportive of the industry.
Fleet Renewal and Low Breakeven
Continued fleet renewal with an average fleet age of about 10 years and a spot cash breakeven rate of about $13,500 per day.
Negative Updates
Geopolitical Uncertainties
Ongoing geopolitical tensions, such as uncertainty about USPR legislation on Chinese vessels and the volatile situation in the Red Sea, could impact tanker markets.
Fleet Aging Concerns
47% of the fleet will be over 20 years old by the time current orders are delivered, potentially leading to a shortage of vessels for commercial trading.
Potential Impact of Low Oil Prices
Low oil prices may create a situation where Russian barrels are going on legitimate tonnage, affecting business dynamics.
Company Guidance
During International Seaways' first quarter 2025 earnings call, CEO Lois Zabrocky highlighted several key financial metrics and strategic moves. The company reported a net income of $50 million, or $1 per diluted share, with an adjusted net income of $40 million, or $0.80 per diluted share. Adjusted EBITDA came in at $91 million, consistent with the previous quarter. The company achieved a weighted average rate of over $30,000 per day on 45% of its revenue days, significantly above its cash breakeven of about $13,500 per day. International Seaways concluded the quarter with $673 million in total liquidity, including $550 million in undrawn revolver capacity, and gross debt of over $600 million, equating to a net loan-to-value ratio of approximately 15%. The company executed a strategic swap of two older VLCCs and cash for three eco MRs, resulting in net proceeds of $50 million. Additionally, a new one-year time charter was secured for a Suezmax, contributing to a fixed revenue of $295 million over the next two years. The company declared a dividend representing 75% of its adjusted net income, to be paid in June, equating to $0.60 per share. With a repurchase program of up to $50 million and a healthy balance sheet, International Seaways is well-positioned to capitalize on favorable market conditions while continuing to return value to shareholders.International Seaways Financial Statement Overview
Summary
International Seaways has strong profitability with robust margins and efficient cash flow generation. However, declining revenue growth and free cash flow trends present risks. Maintaining leverage and revitalizing revenue growth are crucial for sustaining financial health.Income Statement
International Seaways shows a robust Gross Profit Margin and a solid Net Profit Margin in the TTM (Trailing-Twelve-Months) period, indicating strong profitability. However, the Revenue Growth Rate has declined compared to previous years, which could be a concern for future growth prospects. The EBIT and EBITDA margins remain healthy, showcasing efficient operations.78
Positive
Balance Sheet
The company maintains a stable financial position with a moderate Debt-to-Equity Ratio, reflecting balanced leverage. The Return on Equity is impressive, indicating effective use of equity to generate profits. However, the Equity Ratio shows a slight decrease, suggesting a higher proportion of liabilities relative to assets.72
Positive
Cash Flow
Operating Cash Flow remains strong and has a healthy ratio to Net Income, demonstrating efficient cash generation. Despite a drop in Free Cash Flow and its growth rate, the company maintains positive Free Cash Flow to Net Income, which supports financial flexibility. However, recent declines in Free Cash Flow growth warrant close observation.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 860.61M | 951.61M | 1.07B | 864.66M | 272.55M | 421.65M | Gross Profit |
| 412.20M | 478.16M | 627.54M | 470.52M | -37.80M | 169.18M | EBIT |
| 333.75M | 455.23M | 615.43M | 443.37M | -55.15M | 131.50M | EBITDA |
| 492.74M | 607.08M | 744.37M | 558.19M | -17.52M | 100.87M | Net Income Common Stockholders |
| 321.80M | 416.72M | 556.45M | 387.89M | -134.66M | -5.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 199.39M | 157.51M | 186.76M | 323.74M | 97.88M | 199.39M | Total Assets |
| 1.59B | 2.64B | 2.52B | 2.62B | 2.35B | 1.59B | Total Debt |
| 554.93M | 711.74M | 744.53M | 1.07B | 1.13B | 554.93M | Net Debt |
| 355.55M | 554.23M | 617.77M | 830.89M | 1.03B | 355.55M | Total Liabilities |
| 614.50M | 780.35M | 805.06M | 1.13B | 1.18B | 614.50M | Stockholders Equity |
| 972.04M | 1.86B | 1.72B | 1.49B | 1.13B | 972.04M |
| Cash Flow | Free Cash Flow | ||||
| 119.23M | 261.96M | 481.77M | 171.12M | -155.21M | 165.58M | Operating Cash Flow |
| 460.64M | 547.14M | 688.40M | 287.80M | -76.19M | 216.14M | Investing Cash Flow |
| -75.20M | -155.02M | -124.27M | 42.80M | 133.29M | 32.37M | Financing Cash Flow |
| -392.18M | -361.38M | -681.12M | -185.79M | -173.84M | -183.07M |
International Seaways Technical Analysis
Positive
39.91
Price Trends
34.87
Positive
34.87
Positive
37.97
Positive
Market Momentum
0.71
Negative
68.07
Neutral
84.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSW, the sentiment is Positive. The current price of 39.91 is above the 20-day moving average (MA) of 37.10, above the 50-day MA of 34.87, and above the 200-day MA of 37.97, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 68.07 is Neutral, neither overbought nor oversold. The STOCH value of 84.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INSW.
International Seaways Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.39B | 12.63 | 14.79% | 3.65% | 0.88% | -45.41% | |
80 Outperform | $1.97B | 6.17 | 17.57% | 6.01% | -18.74% | -39.64% | |
80 Outperform | $1.07B | 11.60 | 8.71% | 7.98% | -24.25% | -48.08% | |
79 Outperform | $1.95B | 10.96 | 17.04% | 4.94% | -5.32% | 5.51% | |
78 Outperform | $2.21B | 3.15 | 24.68% | 3.69% | -7.25% | 31.85% | |
75 Outperform | $1.64B | 5.10 | 18.57% | 10.51% | -21.27% | -34.25% | |
58 Neutral | $7.56B | 3.50 | -4.45% | 10.15% | 0.79% | -49.51% |
* Energy Sector Average
Performance Comparison
INSW
International Seaways
39.91
-9.75
-19.63%
DHT
DHT Holdings
12.15
1.76
16.94%
FRO
Frontline
19.74
-2.51
-11.28%
STNG
Scorpio Tankers
43.40
-32.46
-42.79%
TNK
Teekay Tankers
47.59
-14.93
-23.88%
LPG
Dorian LPG
25.05
-11.86
-32.13%
International Seaways Corporate Events
Executive/Board ChangesShareholder Meetings
International Seaways Holds Annual Stockholders Meeting
Neutral
Jun 12, 2025
On June 10, 2025, International Seaways held its Annual Meeting of Stockholders, where 84.33% of the outstanding shares were represented. During the meeting, stockholders elected nine directors, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, approved the compensation of the company’s named executive officers for 2024, and approved the 2025 Management Incentive Compensation Plan.
The most recent analyst rating on (INSW) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on International Seaways stock, see the INSW Stock Forecast page.
DividendsBusiness Operations and StrategyFinancial Disclosures
International Seaways Declares Q2 2025 Dividend
Neutral
May 8, 2025
International Seaways reported a net income of $50 million for the first quarter of 2025, reflecting a decrease from the previous year due to lower TCE revenues. The company declared a combined dividend of $0.60 per share for the second quarter of 2025, continuing its strategy of returning 75% of adjusted net income to shareholders. The company also completed a strategic vessel swap, enhancing its fleet with newer MRs, and maintained a strong balance sheet with total liquidity of $673 million. Despite a challenging market environment, Seaways remains optimistic about future demand for seaborne transportation, supported by low inventories and regional imbalances.
Executive/Board ChangesBusiness Operations and Strategy
International Seaways Adjusts Executive Compensation Strategy
Neutral
Mar 18, 2025
On March 12, 2025, International Seaways’ Human Resources and Compensation Committee approved compensation adjustments for several key executives, including salary increases for the CFO, CAO, and Controller, retroactive to January 1, 2025. The committee also enhanced the annual equity target opportunities for the CEO and other senior executives, reflecting a strategic move to align executive incentives with company performance, potentially impacting stakeholder interests and company operations.
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.