SFL Corporation (SFL) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: 12.24%
• Average Volume (3M): 1.60M
• 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): -0.03
• Shares Outstanding: 138,562,180
• 10 Day Avg. Volume: 1,939,449
• 30 Day Avg. Volume: 1,596,891
• PEG Ratio: 0.33
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 4.73
• Enterprise Value/Market Cap: 2.67
• Enterprise Value/Revenue: 5.34
• Enterprise Value/Gross Profit: 16.06
• Enterprise Value/Ebitda: 9.45
• 1Y Price Target: $12.00
• Price Target Upside: 11.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $10.50 ▼(-2.23% Downside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 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.

High fleet utilization & diversified fleet

Very high utilization across a diversified fleet (containers, tankers, car carriers, drybulk, rigs) signals steady earnings potential and operational resilience. Diversification reduces exposure to any single market segment and supports stable charter revenues and cash generation over the medium term.

Consistent operating cash flow & shareholder returns

SFL has a long track record of returning capital and produced positive operating cash flow and strong adjusted EBITDA in recent periods. Persistent cash generation and a disciplined payout history indicate durable free‑cash‑flow focus and corporate commitment to shareholder returns.

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.

Substantial remaining newbuild capex and financing need

An ~$850m financing need for 5.1 newbuilds is a material near‑term funding requirement. Even with lender interest, execution risk, timing mismatches, and potential incremental leverage could strain liquidity, alter capital allocation, and amplify vulnerability to market swings during the build and delivery phases.

Volatile profitability and asset employment risk

Earnings show meaningful volatility driven by one‑offs and accounting recognition, and the Hercules rig’s warm stacking removes a prior cash contributor. Such swings and idle high‑capex assets increase earnings unpredictability and may pressure cash coverage metrics if re‑employment or disruption resolution is delayed.

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

Mixed fundamentals: operating cash flow has stayed positive and free cash flow rebounded in 2025, but revenue turned negative and net income swung to a loss. The balance sheet is the main constraint, with persistently high leverage (~2.5–2.8x debt-to-equity) and a reduced equity cushion in a cyclical industry.

Income Statement

Revenue growth has turned negative in 2025 (down ~7.0% after a strong 2024), and profitability deteriorated sharply with net income swinging to a loss in 2025 despite still-healthy gross and EBITDA margins. The company has shown it can generate solid profits in prior years (2021–2024), but results appear volatile and more cyclical than stable, with meaningful year-to-year swings (including a large loss in 2020 and again in 2025).

Balance Sheet

Leverage is high and persistent, with debt running around ~2.5–2.8x equity across the period, which elevates financial risk in a cyclical shipping environment. Equity has also stepped down from 2024 to 2025, and returns on equity turned negative in 2025, reflecting the earnings downturn. While the asset base is sizable, the balance sheet profile is still debt-heavy and leaves less cushion if operating conditions weaken.

Cash Flow

Operating cash flow has been consistently positive, supporting liquidity through the cycle, and free cash flow rebounded strongly to a solid positive level in 2025 after heavy negative free cash flow in 2024 and 2022. That said, free cash flow has been uneven year-to-year, and operating cash flow covers less than half of revenue in recent years (roughly ~0.35–0.45), suggesting cash generation can fluctuate with working capital and investment needs.

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

• Technical Analysis Sentiment: Positive
• Last Price: 10.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 10.74 is above the 20-day moving average (MA) of 9.36, above the 50-day MA of 8.55, and above the 200-day MA of 8.08, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 85.17 is Negative, neither overbought nor oversold. The STOCH value of 96.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$1.40B	3.51	26.18%	6.16%	7.13%	23.37%
CMRE	76 Outperform	$2.06B	6.00	16.57%	2.94%	-29.82%	-16.77%
NMM	76 Outperform	$1.86B	6.73	8.81%	0.39%	-1.33%	-33.66%
ECO	71 Outperform	$1.73B	18.60	―	6.50%	-12.47%	-34.41%
GNK	69 Neutral	$1.01B	-217.45	-0.48%	4.04%	-24.58%	-110.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SFL	59 Neutral	$1.44B	-51.57	-2.53%	12.24%	-11.10%	-101.57%

SFL Corporation Corporate Events

SFL Corporation Posts Q4 2025 Preliminary Results, Maintains Dividend and Reshapes Tanker Portfolio

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 predominantly investment-grade customers. The company has also committed substantial capital to retrofits, upgrades and LNG dual-fuel capable vessels to enhance efficiency and reduce environmental impact, reflecting a strategic focus on sustainability and operational resilience.

On February 11, 2026 SFL reported preliminary results for the quarter ended December 31, 2025, highlighting its 88th consecutive quarterly dividend at $0.20 per share despite a U.S. GAAP net loss of $4.7 million, or $0.04 per share. Fourth-quarter operating revenues reached $176 million, supported by a $3.7 billion fixed-rate charter backlog with a 6.5-year average term, portfolio optimization moves including the sale of two 2015-built Suezmax tankers for $52 million in net proceeds, compensation-backed charter releases on two 2020-built Suezmaxes to capture a strong spot market, and ongoing investment in fleet upgrades alongside a cash position of $151 million and access to additional undrawn credit lines.

The most recent analyst rating on (SFL) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on SFL Corporation stock, see the SFL Stock Forecast page.

SFL Corporation Sells Two Suezmax Tankers and Reshapes Charter Portfolio

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 roughly $26 million per ship after debt repayment and termination fees. The vessels, to be delivered in the fourth and first quarters, are projected to generate a combined book gain of approximately $23 million, while SFL has also mutually agreed with the same charterer to terminate charters for two 2020-built Suezmax tankers, SFL Albany and SFL Fraser, which it will retain and initially deploy in the spot market before seeking longer-term employment; management frames the move as crystallizing embedded value in older assets and redeploying capital into younger, more fuel-efficient ships positioned to benefit from a strong charter market and higher prevailing rates than existing fixed charters.

The most recent analyst rating on (SFL) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on SFL Corporation stock, see the SFL Stock Forecast page.