SFL Corporation (SFL) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: 12.38%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -11.10%
• EPS Growth: -101.57%
• Country: US
• Employees: 24
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 0.09
• Shares Outstanding: 144,562,930
• 10 Day Avg. Volume: 1,365,084
• 30 Day Avg. Volume: 1,309,524
• PEG Ratio: 0.19
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.48
• P/FCF Ratio: -4.81
• Enterprise Value/Market Cap: 3.25
• Enterprise Value/Revenue: 4.61
• Enterprise Value/Gross Profit: 17.86
• Enterprise Value/Ebitda: 8.20
• 1Y Price Target: $11.00
• Price Target Upside: 44.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $8.50 ▲(11.99% Upside)

SFL Corporation's overall stock score is primarily influenced by financial challenges, including high leverage and negative cash flow growth. The positive sentiment from the earnings call, with strong dividends and strategic fleet management, provides some support. However, technical indicators suggest caution due to overbought conditions, and valuation concerns persist with a negative P/E ratio.

Positive Factors

Strong Charter Backlog

A strong charter backlog provides SFL with predictable cash flows and reduces revenue volatility, enhancing long-term financial stability.

Fleet Renewal Strategy

The fleet renewal strategy improves operational efficiency and positions SFL to meet future regulatory and market demands, supporting sustainable growth.

Consistent Dividend Payments

Consistent dividend payments reflect strong cash generation ability and management's commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in downturns, potentially impacting long-term financial health.

Declining Revenue Growth

Declining revenue growth and profitability can hinder SFL's ability to invest in new opportunities, affecting long-term competitiveness and market position.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential liquidity issues, limiting SFL's ability to fund operations and growth initiatives, impacting future prospects.

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 is also involved in the charter, purchase, and sale of assets. In addition, it operates in various sectors of the maritime, and shipping and offshore industries, including oil, chemical, oil product, container, and car transportation, as well as dry bulk shipments and drilling rigs. As of December 31, 2021, the company owned six crude oil tankers, 15 dry bulk carriers, 35 container vessels, two car carriers, one jack-up drilling rig, one ultra-deepwater drilling unit, two chemical tankers, and four oil product tankers. It primarily operates in Bermuda, Cyprus, Liberia, Norway, Singapore, the United Kingdom, and the Marshall Islands. The company was formerly known as Ship Finance International Limited and changed its name to SFL Corporation Ltd. in September 2019. SFL Corporation Ltd. was incorporated in 2003 and is based in Hamilton, Bermuda.

How the Company Makes Money

SFL generates revenue primarily through long-term leasing agreements and contracts for its fleet of vessels and offshore units. The company earns money by charging its clients for the use of its vessels, which are often leased on fixed-rate contracts that provide stable income over extended periods. Key revenue streams include charter hire from tankers and bulk carriers, as well as income from offshore support vessels used in oil and gas exploration and production. SFL also benefits from partnerships with major industry players and contracts with leading oil companies, which contribute to its earnings stability and growth potential. Additionally, the company's focus on maintaining a diversified fleet helps mitigate risks associated with fluctuations in demand and market conditions.

SFL Corporation Financial Statement Overview

Summary

SFL Corporation faces challenges in revenue growth and profitability, with a declining net profit margin and high leverage. Operational efficiency is strong, but high debt levels and negative free cash flow growth raise concerns about financial stability.

Income Statement

SFL Corporation's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth by 9.1%, which is concerning. However, the company maintains a solid EBIT margin of 26.7% and a strong EBITDA margin of 56.0%, suggesting operational efficiency. The net profit margin has decreased significantly to 0.4% in the TTM, indicating challenges in converting revenue into profit.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.79, indicating significant leverage, which could pose financial risks. The return on equity (ROE) has decreased to 3.2% in the TTM, reflecting reduced profitability for shareholders. The equity ratio stands at 25.8%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a substantial decline in free cash flow growth by 182.9% in the TTM, highlighting potential liquidity issues. The operating cash flow to net income ratio is 0.35, indicating that operating cash flow is not fully covering net income. The free cash flow to net income ratio is negative, suggesting challenges in generating free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	774.01M	891.62M	738.13M	655.65M	494.70M	400.41M
Gross Profit	199.70M	309.14M	230.32M	262.68M	199.64M	133.49M
EBITDA	434.79M	560.09M	466.23M	507.93M	393.06M	22.30M
Net Income	-1.58M	130.65M	83.94M	202.77M	164.34M	-224.43M
Balance Sheet
Total Assets	3.85B	4.11B	3.73B	3.86B	3.46B	3.09B
Cash, Cash Equivalents and Short-Term Investments	281.68M	138.29M	170.60M	195.65M	166.83M	235.24M
Total Debt	2.76B	2.84B	2.57B	2.67B	2.41B	2.25B
Total Liabilities	2.86B	2.98B	2.69B	2.77B	2.48B	2.30B
Stockholders Equity	991.59M	1.13B	1.04B	1.09B	982.33M	795.65M
Cash Flow
Free Cash Flow	124.08M	-275.00M	78.67M	-247.37M	-288.03M	156.43M
Operating Cash Flow	317.41M	369.86M	343.09M	355.13M	293.60M	276.48M
Investing Cash Flow	27.06M	-617.50M	-103.89M	-499.09M	-389.05M	176.34M
Financing Cash Flow	-230.05M	216.70M	-262.06M	178.37M	25.02M	-431.43M

SFL Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.59
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFL, the sentiment is Negative. The current price of 7.59 is below the 20-day moving average (MA) of 7.94, above the 50-day MA of 7.52, and below the 200-day MA of 7.81, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFL.

SFL Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSL	81 Outperform	$1.20B	3.01	26.18%	6.25%	7.13%	23.37%
ECO	78 Outperform	$1.26B	14.93	―	6.21%	-12.47%	-34.41%
CMRE	76 Outperform	$1.83B	6.07	14.98%	3.02%	-29.82%	-16.77%
NMM	76 Outperform	$1.46B	5.78	8.36%	0.40%	-1.33%	-33.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNK	59 Neutral	$789.19M	-109.71	-0.78%	4.10%	-24.58%	-110.22%
SFL	58 Neutral	$1.10B	-436.21	-0.15%	12.38%	-11.10%	-101.57%

SFL Corporation Corporate Events

SFL Corporation Reports Decline in Revenues for Nine Months Ending September 2025

SFL Corporation Ltd. reported its unaudited financial results for the nine months ended September 30, 2025. The company experienced a decline in total operating revenues to $557.5 million from $675.3 million in the same period of 2024, primarily due to a significant drop in drilling contract revenues. Despite this, SFL managed to maintain a stable operating income, although it decreased from the previous year. The financial results reflect challenges in the drilling sector but also highlight the company’s efforts to manage operating expenses effectively.

SFL Corporation Announces Q3 2025 Financial Results and Dividend

SFL Corporation announced its preliminary financial results for the third quarter of 2025, reporting total operating revenues of $178 million and a net income of $8.6 million. The company declared its 87th consecutive quarterly dividend of $0.20 per share, reflecting its consistent financial performance. SFL continues to optimize its fleet by selling older vessels and upgrading modern ones, enhancing efficiency and sustainability. The company maintains a strong charter backlog of approximately $4 billion, with a significant portion contracted with investment-grade customers, indicating robust market positioning and stability for stakeholders.

SFL Corporation Releases Interim Financial Results for H1 2025

SFL Corporation Ltd. released its unaudited condensed interim financial statements for the six months ended June 30, 2025. The report highlights a slight increase in time charter revenues compared to the previous year, while drilling contract revenues saw a significant decline. This financial performance may impact SFL’s market positioning as it navigates the challenges within the shipping and offshore sectors.