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SFL Corporation (SFL)
NYSE:SFL
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SFL Corporation
(NYSE:SFL)
Rating:69Neutral
Price Target:
$9.50
â–²(3.49% Upside)
SFL Corporation (SFL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.32B
Dividend Yield11.76%
Average Volume (3M)894.26K
Price to Earnings (P/E)21.9
Beta (1Y)0.61
Revenue Growth6.68%
EPS Growth-57.55%
CountryUS
Employees24
SectorIndustrials
Sector Strength85
IndustryMarine Shipping
Share Statistics
EPS (TTM)N/A
Shares Outstanding145,236,420
10 Day Avg. Volume881,045
30 Day Avg. Volume894,263
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.88
Enterprise Value/Revenue4.44
Enterprise Value/Gross Profit13.89
Enterprise Value/Ebitda7.73
Forecast
1Y Price Target
$10.75Price Target Upside17.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
SFL Corporation Business Overview & Revenue Model
Company DescriptionSFL Corporation (SFL) is a leading provider of maritime and offshore services, primarily focused on the ownership and operation of a diversified fleet of vessels and offshore assets. The company operates in the shipping and offshore oil and gas sectors, offering services that include the leasing of ships and rigs to major players in the industry. SFL's core products encompass a range of asset types, including tankers, container vessels, and offshore drilling units, aimed at meeting the global demand for energy and transportation.
How the Company Makes MoneySFL Corporation generates revenue primarily through long-term charters and contracts with leading oil and gas companies, shipping lines, and other industry players. The company’s revenue model is based on securing fixed-rate contracts that provide stable cash flows over extended periods. Key revenue streams include time charters, bareboat charters, and profit-sharing arrangements. Additionally, SFL benefits from significant partnerships with established firms in the maritime and offshore sectors, which enhance its market position and contribute to its earnings stability. The company also explores opportunities for fleet expansion and asset acquisition to maximize revenue potential.
SFL Corporation Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q1-2025)
| % Change Since: 8.51%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted consistent dividend payouts and a strong charter backlog, indicating resilience despite market volatility. However, the quarter was marred by a net loss due to impairments and idle assets like the Hercules rig. The new tariffs on Chinese-built and operated ships pose additional challenges. While operational improvements were noted, these were overshadowed by significant financial and strategic challenges.Q1-2025 Updates
Positive Updates
Consistent Dividend Payout
Announced the 85th consecutive dividend of $0.27 per share, returning over $2.8 billion to shareholders over 85 quarters, representing a yield of approximately 13% based on the share price.
Strong Charter Backlog
Charter backlog stands at $4.2 billion, with more than two-thirds of this from customers with investment-grade ratings, providing unique cash flow visibility and resilience.
High Fleet Utilization
Overall fleet utilization was 98.6%, with shipping fleet utilization at 99.8%, showcasing the high quality of vessel management.
Operational Improvements and Upgrades
Several vessels upgraded in the quarter, boosting cargo intake and fuel efficiency, contributing to higher charter extensions.
Negative Updates
Net Loss for the Quarter
Recorded a net loss of $32 million or $0.24 per share, impacted by impairments on older dry bulk vessels and the Hercules rig being idle.
Impairments on Dry Bulk Vessels
Impairments amounting to $34 million due to difficulties in finding new long-term charters for older vessels, exacerbated by market volatility and recession fears.
Hercules Rig Idle
The Hercules rig has been idle since Q4 2024, with market turmoil and oil price volatility delaying new employment opportunities, affecting financial results.
Impact of New Tariffs
Newly imposed U.S. tariffs and fees on Chinese-built and operated ships could affect approximately 27 vessels in the fleet, primarily car carriers and tankers.
Company Guidance
During the conference call, SFL Corporation provided guidance on its first-quarter performance for fiscal year 2025. The company reported revenues of $193 million and an EBITDA equivalent cash flow of $116 million, with a 12-month EBITDA equivalent totaling $545 million. Despite challenges, such as impairments on older dry bulk vessels and the Hercules drill rig being idle, SFL declared a net loss of $32 million or $0.24 per share. The company continues its dividend tradition, declaring $0.27 per share, representing a yield of approximately 13%. SFL's charter backlog stands at $4.2 billion, with over two-thirds from investment-grade customers, providing strong cash flow visibility. The company also highlighted its capital allocation strategy, which includes repurchasing $10 million worth of shares. Operationally, the fleet's utilization was high, with 98.6% for the shipping fleet and 97.2% overall, including drilling rigs. Despite new tariffs impacting 27 vessels, SFL plans to pass these costs to charters. The company maintains a solid liquidity position, with $174 million in cash and cash equivalents, and plans to continue investing in accretive assets.SFL Corporation Financial Statement Overview
Summary
SFL Corporation demonstrates stable revenue and profitability metrics, with moderate revenue growth and consistent operating cash flows. However, high leverage and negative free cash flow pose risks, necessitating careful management of debt and capital expenditures.Income Statement
SFL Corporation demonstrated moderate revenue growth, with a notable increase from 2020 to 2024, although revenue slightly declined in TTM. Gross and EBIT margins are fairly stable, indicating efficient cost management. However, the net profit margin has shown volatility, suggesting potential challenges in controlling non-operating expenses. Overall, the income statement reflects a solid but fluctuating profitability trajectory.68
Positive
Balance Sheet
The company's balance sheet shows a stable equity base with a consistent equity ratio. The debt-to-equity ratio is relatively high, which could pose risks in case of interest rate increases or downturns in shipping demand. Return on equity is moderate, reflecting effective utilization of equity despite high leverage, which is common in capital-intensive industries like marine shipping.72
Positive
Cash Flow
SFL Corporation's cash flow statement highlights consistent operating cash flows, but free cash flow has been negative in recent years due to significant capital expenditures. The operating cash flow to net income ratio indicates strong cash conversion, yet the free cash flow to net income ratio is concerning, suggesting challenges in funding growth through internal cash generation.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 891.62M | 744.33M | 670.39M | 513.40M | 471.05M |
| Gross Profit | 309.14M | 236.51M | 277.42M | 218.33M | 204.13M |
| EBITDA | 563.45M | 468.33M | 507.93M | 343.69M | 18.01M |
| Net Income | 130.65M | 83.94M | 130.06M | 76.47M | -346.07M |
Balance Sheet | |||||
| Total Assets | 4.11B | 3.73B | 3.86B | 3.46B | 3.09B |
| Cash, Cash Equivalents and Short-Term Investments | 138.29M | 191.24M | 195.65M | 166.83M | 244.25M |
| Total Debt | 2.84B | 2.57B | 2.67B | 2.41B | 2.22B |
| Total Liabilities | 2.98B | 2.69B | 2.77B | 2.48B | 2.30B |
| Stockholders Equity | 1.13B | 1.04B | 1.09B | 982.33M | 795.65M |
Cash Flow | |||||
| Free Cash Flow | -275.00M | 78.67M | -247.37M | -288.03M | 156.43M |
| Operating Cash Flow | 369.86M | 343.09M | 355.13M | 293.60M | 276.48M |
| Investing Cash Flow | -617.50M | -103.89M | -499.09M | -389.05M | 176.34M |
| Financing Cash Flow | 216.70M | -262.06M | 178.37M | 25.02M | -431.43M |
SFL Corporation Technical Analysis
Neutral
9.18
Price Trends
8.90
Positive
8.40
Positive
8.92
Positive
Market Momentum
0.09
Positive
51.61
Neutral
39.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFL, the sentiment is Neutral. The current price of 9.18 is below the 20-day moving average (MA) of 9.25, above the 50-day MA of 8.90, and above the 200-day MA of 8.92, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 39.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SFL.
SFL Corporation Risk Analysis
SFL Corporation disclosed 61 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.28B | 4.50 | 14.61% | 4.23% | -7.24% | -16.39% | |
81 Outperform | $1.07B | 2.80 | 26.40% | 6.11% | 4.43% | 17.82% | |
80 Outperform | $1.73B | 3.91 | 13.38% | 3.54% | 5.63% | -17.54% | |
74 Outperform | $1.29B | 4.02 | 11.19% | 0.45% | 0.28% | -17.08% | |
69 Neutral | $1.32B | 21.93 | 5.09% | 11.76% | 6.68% | -57.55% | |
68 Neutral | $1.68B | 14.80 | 6.06% | 9.51% | -7.73% | -39.13% | |
58 Neutral | HK$13.61B | 5.40 | -2.78% | 5.74% | 2.29% | -57.49% |
* Industrials Sector Average
Performance Comparison
SFL
SFL Corporation
9.18
-1.16
-11.22%
CMRE
Costamare
10.87
0.86
8.59%
DAC
Danaos
94.50
15.95
20.31%
GSL
Global Ship Lease
30.68
5.69
22.77%
NMM
Navios Maritime Partners
44.15
-1.35
-2.97%
GOGL
Golden Ocean Group
8.41
-2.67
-24.10%
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.