SFL Corporation (SFL)
NYSE:SFL
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SFL Corporation
(NYSE:SFL)
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Rating:59Neutral
Price Target:
$12.00
▲(8.40% Upside)
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 quality
A ~$3.7bn fixed-rate charter backlog (two-thirds with investment-grade counterparties) provides multi-quarter cash-flow visibility, lowers immediate counterparty risk, and supports predictable hire revenues. This structural backlog underpins dividend capacity and planning around newbuild financing and fleet deployment.
Negative Factors
High leverage
Sustained leverage at roughly 2.5–2.8x debt-to-equity and a modest book equity ratio (~26%) leave limited balance-sheet cushion in cyclical downturns. High indebtedness increases refinancing risk, interest exposure, and constrains strategic optionality for opportunistic purchases or weathering prolonged shipping weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
Charter backlog quality
A ~$3.7bn fixed-rate charter backlog (two-thirds with investment-grade counterparties) provides multi-quarter cash-flow visibility, lowers immediate counterparty risk, and supports predictable hire revenues. This structural backlog underpins dividend capacity and planning around newbuild financing and fleet deployment.
Read all positive factors
SFL Corporation (SFL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.64B
Dividend Yield12.24%
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth-18.95%
EPS Growth-120.07%
CountryUS
Employees24
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)-0.03
Shares Outstanding144,582,930
10 Day Avg. Volume1,141,512
30 Day Avg. Volume1,370,707
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 Cap2.39
Enterprise Value/Revenue5.45
Enterprise Value/Gross Profit16.39
Enterprise Value/Ebitda9.64
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)$666.63M
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 primarily makes money by owning vessels and contracting them out to customers under charter agreements that pay recurring hire/lease revenues. Its core revenue stream is charter hire (or equivalent lease income) earned from long-term and/or me...
SFL Corporation Key Performance Indicators (KPIs)
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
10.44
Positive
9.21
Positive
8.47
Positive
Market Momentum
0.18
Positive
62.91
Neutral
57.47
Neutral
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 10.79, above the 50-day MA of 10.44, and above the 200-day MA of 8.47, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 57.47 is Neutral, 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 | $1.42B | 3.00 | 24.76% | 6.16% | 7.79% | 16.98% | |
72 Outperform | $1.95B | 5.21 | 16.86% | 2.94% | -48.06% | 17.23% | |
71 Outperform | $2.08B | 8.98 | ― | 6.50% | -0.43% | 10.49% | |
70 Outperform | $2.02B | 3.29 | 8.85% | 0.39% | 0.76% | -19.76% | |
69 Neutral | $1.05B | 13.01 | -0.49% | 4.04% | -19.14% | -105.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $1.64B | -39.32 | -2.63% | 12.24% | -18.95% | -120.07% |
* Industrials Sector Average
SFL
SFL Corporation
11.34
3.95
53.49%
CMRE
Costamare
16.15
9.43
140.40%
GNK
Genco Shipping
24.33
11.64
91.80%
GSL
Global Ship Lease
39.43
19.41
96.93%
NMM
Navios Maritime Partners
70.82
36.50
106.35%
ECO
Okeanis Eco Tankers Corp.
54.26
32.55
149.95%
SFL Corporation Corporate Events
SFL Corporation Sets May 11, 2026 AGM With Key Capital Flexibility Proposal
Apr 8, 2026
SFL Corporation has scheduled its 2026 Annual General Meeting for May 11, 2026, in Hamilton, Bermuda, with April 1, 2026 set as the record date for shareholders eligible to attend and vote. The company has made its 2025 Annual Report on Form 20-F ...
SFL Corporation Sets May 11, 2026 Date for Annual General Meeting
Mar 27, 2026
SFL Corporation Ltd., a Bermuda-based maritime shipping company listed on the NYSE, operates a diversified fleet of tankers, bulkers, container vessels, car carriers and offshore drilling rigs, supported by long-term charters that underpin its con...
SFL Corporation Refreshes $100 Million At-the-Market Equity Program with BTIG
Mar 18, 2026
On March 17, 2026, SFL Corporation Ltd. entered into a Second Amended and Restated Sales Agreement with BTIG LLC, allowing the company to offer and sell up to $100 million of its common shares through an at-the-market equity offering program. The ...
SFL Corporation Secures $170 Million Canadian Drilling Contract for Hercules Rig
Mar 6, 2026
On March 6, 2026, SFL Corporation announced it had signed a drilling contract in Canada with a large investment-grade multinational oil and gas company for its harsh-environment semi-submersible rig Hercules. The deal, valued at about $170 million...
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 ...
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.