International Seaways (INSW) AI Stock Analysis

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International Seaways

(NYSE:INSW)

Rating:80Outperform

Price Target:

$45.00

▲( 20.48% Upside)

International Seaways shows strong financial health with excellent profitability and liquidity, complemented by a sound valuation. Despite some risks, such as declining revenue growth and geopolitical uncertainties, the company's strategic fleet renewal and high dividend yield offer compelling investment potential. The positive sentiment from recent earnings calls and corporate events further bolster confidence in the stock's future performance.

International Seaways (INSW) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.84B

Dividend Yield14.15%

Average Volume (3M)704.22K

Price to Earnings (P/E)5.8

Beta (1Y)0.44

Revenue Growth-18.74%

EPS Growth-39.64%

CountryUS

Employees2,899

SectorEnergy

Sector Strength42

IndustryOil & Gas Midstream

Share Statistics

EPS (TTM)0.80

Shares Outstanding49,338,203

10 Day Avg. Volume606,373

30 Day Avg. Volume704,223

Financial Highlights & Ratios

PEG Ratio-0.24

Price to Book (P/B)1.00

Price to Sales (P/S)0.00

P/FCF Ratio7.08

Enterprise Value/Market Cap1.31

Enterprise Value/Revenue0.66

Enterprise Value/Gross Profit4.33

Enterprise Value/Ebitda0.91

Forecast

1Y Price Target

$43.00

Price Target Upside15.13% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

International Seaways Business Overview & Revenue Model

Company DescriptionInternational Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments, Crude Tankers and Product Carriers. As of December 31, 2021, the company owned and operated a fleet of 83 vessels, which include 12 chartered-in vessels, as well as had ownership interests in two floating storage and offloading service vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. International Seaways, Inc. was incorporated in 1999 and is headquartered in New York, New York.

How the Company Makes MoneyInternational Seaways generates revenue through the chartering of its fleet of vessels to transport crude oil and petroleum products across the globe. The company primarily earns money through time charters and spot market voyages. In time charters, customers lease vessels for a fixed period, providing predictable cash flows. In contrast, spot market voyages are shorter-term contracts that depend on current market rates, allowing the company to capitalize on fluctuating demand and pricing. Additionally, strategic partnerships with oil majors and trading houses enhance operational efficiency and contribute to revenue stability. The company's earnings are also influenced by factors such as oil demand, global economic conditions, and shipping regulations.

International Seaways Financial Statement Overview

Summary

International Seaways demonstrates strong profitability and a solid financial position with low leverage. However, recent operational challenges, such as negative gross profits and zero operating cash flow in 2024, suggest areas for improvement. Continued focus on operational efficiency and cash flow management will be essential for sustaining growth.

Income Statement

Positive

International Seaways has shown robust revenue growth over the past years, with a significant revenue increase from 2020 to 2023. The company achieved a net profit margin of 205.83% in 2023, indicating strong profitability, although this was heavily influenced by a substantial decrease in total revenue in 2024. EBIT and EBITDA margins were also healthy in 2023. However, the negative gross profit in 2024 reflects potential operational inefficiencies that need addressing.

Balance Sheet

Positive

The balance sheet of International Seaways is strong, with a debt-to-equity ratio of 0.04 in 2024, showcasing low financial leverage which is favorable. The equity ratio of 70.41% indicates a solid equity base relative to total assets. The return on equity was significant in 2023, reflecting efficient use of equity capital, although with some fluctuations in subsequent years.

Cash Flow

Neutral

The cash flow statement reveals a mixed picture. Although there was significant free cash flow in 2023, the operating cash flow was zero in 2024, which raises concerns about cash generation from operations. The free cash flow to net income ratio shows variability, which could indicate potential instability in cash management practices.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
951.61M	1.07B	864.66M	272.55M	421.65M
	Gross Profit
627.60M	627.54M	470.52M	-37.80M	169.18M
	EBIT
455.23M	615.43M	443.37M	-55.15M	131.50M
	EBITDA
607.08M	744.37M	558.19M	-17.52M	100.87M
	Net Income Common Stockholders
416.72M	556.45M	387.89M	-134.66M	-5.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
157.51M	186.76M	323.74M	97.88M	199.39M
	Total Assets
2.64B	2.52B	2.62B	2.35B	1.59B
	Total Debt
711.74M	744.53M	1.07B	1.13B	554.93M
	Net Debt
554.23M	617.77M	830.89M	1.03B	355.55M
	Total Liabilities
780.35M	805.06M	1.13B	1.18B	614.50M
	Stockholders Equity
1.86B	1.72B	1.49B	1.13B	972.04M
Cash Flow		Free Cash Flow
261.96M	481.77M	171.12M	-155.21M	165.58M
	Operating Cash Flow
547.14M	688.40M	287.80M	-76.19M	216.14M
	Investing Cash Flow
-155.02M	-124.27M	42.80M	133.29M	32.37M
	Financing Cash Flow
-361.38M	-681.12M	-185.79M	-173.84M	-183.07M

International Seaways Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price37.35

Price Trends

50DMA

34.40

Positive

100DMA

35.40

Positive

200DMA

39.16

Negative

Market Momentum

MACD

1.08

Positive

RSI

55.87

Neutral

STOCH

24.74

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSW, the sentiment is Neutral. The current price of 37.35 is above the 20-day moving average (MA) of 36.79, above the 50-day MA of 34.40, and below the 200-day MA of 39.16, indicating a neutral trend. The MACD of 1.08 indicates Positive momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 24.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INSW.

International Seaways Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRO	81 Outperform	$4.08B	11.73	14.79%	10.36%	0.88%	-45.41%
TNK	81 Outperform	$1.53B	4.77	18.57%	2.31%	-21.27%	-34.25%
INSW	80 Outperform	$1.84B	5.77	17.57%	14.15%	-18.74%	-39.64%
LPG	80 Outperform	$922.44M	9.98	8.71%	―	-24.25%	-48.08%
DHT	79 Outperform	$1.82B	10.22	17.04%	8.38%	-5.32%	5.51%
STNG	77 Outperform	$2.04B	2.91	24.68%	4.05%	-7.25%	31.85%
Sector *	57 Neutral	$7.06B	3.07	-3.45%	5.82%	0.59%	-50.58%

* Energy Sector Average

Performance Comparison

INSW

International Seaways

37.35

-19.79

-34.63%

DHT

DHT Holdings

11.69

0.38

3.36%

FRO

Frontline

18.34

-8.41

-31.44%

STNG

Scorpio Tankers

40.05

-38.87

-49.25%

TNK

Teekay Tankers

44.53

-25.44

-36.36%

LPG

Dorian LPG

21.55

-21.39

-49.81%

International Seaways Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 2.78%|

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 Corporate Events

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.

DividendsBusiness Operations and StrategyFinancial Disclosures

International Seaways Reports Strong 2024 Financial Results

Positive

Feb 27, 2025

On February 27, 2025, International Seaways reported its financial results for the fourth quarter and full year of 2024, highlighting a net income of $36 million for the fourth quarter and $417 million for the year. The company executed a fleet optimization program, exchanging older vessels for newer ones, and maintained a robust balance sheet with $632 million in liquidity. Despite a decrease in shipping revenues compared to 2023, the company declared a combined dividend of $0.70 per share for March 2025, reflecting a strong capital allocation strategy and commitment to shareholder returns.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.