SFL Corporation (SFL)
NYSE:SFL
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SFL Corporation
(NYSE:SFL)
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Rating:59Neutral
Price Target:
$10.50
▼(-5.15% Downside)
Action:ReiteratedDate:02/13/26
The score is held back primarily by volatile profitability and a highly leveraged balance sheet, despite resilient operating cash flow. Technicals are supportive but overextended, and valuation is helped by the very high dividend yield while a negative P/E reflects the recent loss. Earnings-call commentary adds support via backlog-driven cash-flow visibility, but meaningful financing and asset-employment risks remain.
Positive Factors
Charter backlog & counterparty quality
A multi-billion charter backlog with two‑thirds tied to investment‑grade counterparties provides durable multi-quarter cash‑flow visibility and lowers counterparty risk. This structural contracted revenue backbone supports predictable cash generation and underpins dividend capacity through cycles.
Negative Factors
High leverage / reduced equity cushion
Sustained leverage at ~2.5–2.8x equity and a modest equity ratio constrains financial flexibility in a cyclical shipping industry. Elevated debt increases refinancing and covenant risk, limits the ability to absorb downturns, and raises the likelihood that capital returns or growth investments must be rebalanced under stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Charter backlog & counterparty quality
A multi-billion charter backlog with two‑thirds tied to investment‑grade counterparties provides durable multi-quarter cash‑flow visibility and lowers counterparty risk. This structural contracted revenue backbone supports predictable cash generation and underpins dividend capacity through cycles.
Read all positive factors
SFL Corporation (SFL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.60B
Dividend Yield12.24%
Average Volume (3M)1.55M
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-11.10%
EPS Growth-101.57%
CountryUS
Employees24
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)-0.03
Shares Outstanding144,582,930
10 Day Avg. Volume1,143,589
30 Day Avg. Volume1,551,635
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 Cap2.43
Enterprise Value/Revenue5.40
Enterprise Value/Gross Profit16.24
Enterprise Value/Ebitda9.55
Forecast
1Y Price Target
$12.00Price Target Upside8.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.03
Revenue Forecast (FY)$675.92M
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...
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 contra...
SFL Corporation Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call highlights strong operational performance and cash generation (high fleet utilization, $109M adjusted EBITDA, $3.7B charter backlog, successful Suezmax dispositions with >25% annualized ROE), robust shareholder returns (88th consecutive dividend, ~9% yield), and meaningful sustainability/upgrade progress (LNG dual-fuel utilization). Key challenges are primarily accounting-driven (a $23M settlement expense and resulting US GAAP net loss of ~$4.7M), spot-related P&L volatility, an idle Hercules rig with uncertain re-employment timing, and substantial remaining newbuilding capex (~$850M) that requires financing. On balance the operational and strategic positives (backlog quality, utilization, profitable asset sales, strong liquidity initiatives) outweigh the quarter-specific accounting and timing headwinds.Positive Updates
Consecutive Dividend and Shareholder Returns
Declared the 88th consecutive cash dividend of $0.10 per share; company has returned more than $2.9 billion to shareholders over 88 quarters. Dividend yield is around 9% based on the most recent share price.
Negative Updates
US GAAP Net Loss in the Quarter
Reported a US GAAP net loss of approximately $4.7 million (about $0.04 per share) for the quarter, driven by non-recurring and non-cash items despite strong cash flow metrics.
Read all updates
Q4-2025 Updates
Positive
Negative
Consecutive Dividend and Shareholder Returns
Declared the 88th consecutive cash dividend of $0.10 per share; company has returned more than $2.9 billion to shareholders over 88 quarters. Dividend yield is around 9% based on the most recent share price.
Read all positive updates
Company Guidance
Management reiterated strong cash-flow visibility and capital-return priorities, citing a declared 88th consecutive cash dividend of $0.10 per share (CEO also referenced 20¢), ~9% yield and >$2.9bn returned over 88 quarters; Q4 operating revenues of ~$176m and adjusted EBITDA/cash-flow of ~$109m (LTM EBITDA ~$450m); a reported net loss of ~$4.7m (~$0.04/share) after non-recurring items including an $11.3m book gain on a Suezmax sale and ~$23m in settlement compensation. Key balance-sheet and portfolio metrics: charter backlog ~$3.7bn (≈2/3 to investment‑grade counterparties), fleet of 57 assets (30 containerships, 14 large tankers, 7 car carriers, 2 dry bulk, 2 chemical tankers, 2 rigs), cash ~$151m + $46m undrawn facilities, book equity ratio ~26%, remaining newbuild capex ~$850m (5.1 vessels). Operational stats: 4,808 operating days, utilization 98.6% (99.8% excl. unscheduled off‑hire), two drydocks cost ~$4.2m, container charter hire ~$81m, tankers ~$42m, car carriers ~$26m, dry bulk ~$2.7m (~$15k/day/vessel), energy assets ~$23m; two Suezmaxes bought at ~$47m (2022) sold at ~$57m (net cash ~ $26m, ROE >25%); broker indicators: one‑year Suezmax TC ~ $47.5k/day, TD20 index up ~20% (implying >$60k/day); new Hercules facility ~$100m expected.SFL Corporation Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
42
Neutral
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 719.75M | 891.62M | 738.13M | 655.65M | 494.70M |
| Gross Profit | 417.98M | 309.14M | 230.32M | 262.68M | 199.64M |
| EBITDA | 421.39M | 560.09M | 466.23M | 507.93M | 393.06M |
| Net Income | -26.43M | 130.65M | 83.94M | 202.77M | 164.34M |
Balance Sheet | |||||
| Total Assets | 3.64B | 4.11B | 3.73B | 3.86B | 3.46B |
| Cash, Cash Equivalents and Short-Term Investments | 154.97M | 138.29M | 170.60M | 195.65M | 166.83M |
| Total Debt | 2.57B | 2.84B | 2.57B | 2.67B | 2.41B |
| Total Liabilities | 2.68B | 2.98B | 2.69B | 2.77B | 2.48B |
| Stockholders Equity | 960.86M | 1.13B | 1.04B | 1.09B | 982.33M |
Cash Flow | |||||
| Free Cash Flow | 219.66M | -275.00M | 78.67M | -247.37M | -288.03M |
| Operating Cash Flow | 290.14M | 369.86M | 343.09M | 355.13M | 293.60M |
| Investing Cash Flow | 165.09M | -617.50M | -103.89M | -499.09M | -389.05M |
| Financing Cash Flow | -438.96M | 216.70M | -262.06M | 178.37M | 25.02M |
SFL Corporation Technical Analysis
Positive
11.07
Price Trends
10.13
Positive
9.00
Positive
8.37
Positive
Market Momentum
0.24
Negative
65.82
Neutral
90.05
Negative
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 11.07 is above the 20-day moving average (MA) of 10.54, above the 50-day MA of 10.13, and above the 200-day MA of 8.37, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 65.82 is Neutral, neither overbought nor oversold. The STOCH value of 90.05 is Negative, 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.40B | 3.00 | 24.76% | 6.16% | 7.13% | 23.37% | |
72 Outperform | $2.13B | 5.21 | 16.86% | 2.94% | -29.82% | -16.77% | |
71 Outperform | $1.95B | 8.98 | ― | 6.50% | -12.47% | -34.41% | |
70 Outperform | $2.06B | 5.47 | 8.85% | 0.39% | -1.33% | -33.66% | |
69 Neutral | $1.05B | 13.01 | -0.49% | 4.04% | -24.58% | -110.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $1.60B | -39.32 | -2.63% | 12.24% | -11.10% | -101.57% |
* Industrials Sector Average
SFL
SFL Corporation
11.07
4.13
59.42%
CMRE
Costamare
17.64
11.16
172.10%
GNK
Genco Shipping
24.32
12.45
104.90%
GSL
Global Ship Lease
38.91
20.79
114.77%
NMM
Navios Maritime Partners
72.13
40.97
131.45%
ECO
Okeanis Eco Tankers Corp.
50.95
32.60
177.64%
SFL Corporation Corporate Events
SFL Corporation Posts Q4 2025 Preliminary Results, Maintains Dividend and Reshapes Tanker Portfolio
Feb 11, 2026
SFL Corporation Ltd., a Bermuda-based shipowner with a diversified fleet in container shipping, car carriers, tankers, bulkers and energy assets, derives most of its operating revenues from shipping and secures long-term, fixed-rate charters with ...
SFL Corporation Sells Two Suezmax Tankers and Reshapes Charter Portfolio
Dec 19, 2025
On December 19, 2025, SFL Corporation announced it has agreed to sell two 2015-built Suezmax tankers, SFL Thelon and SFL Ottawa, currently on charter to a trading house, for a gross price of about $57 million per vessel, expecting net proceeds of ...
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.