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SFL Corporation (SFL)
NYSE:SFL
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SFL Corporation
(NYSE:SFL)
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Rating:58Neutral
Price Target:
$8.50
â–²(10.82% Upside)
SFL Corporation's overall stock score reflects mixed financial performance and bearish technical indicators. While the company benefits from a strong dividend yield and robust charter backlog, high leverage, declining revenue, and technical weaknesses weigh on the score. The neutral sentiment from the earnings call adds to the cautious outlook.
SFL Corporation (SFL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.02B
Dividend Yield13.17%
Average Volume (3M)1.61M
Price to Earnings (P/E)29.4
Beta (1Y)0.67
Revenue Growth3.51%
EPS Growth-74.09%
CountryUS
Employees24
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.01
Shares Outstanding132,737,780
10 Day Avg. Volume1,246,433
30 Day Avg. Volume1,607,508
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.17
Price to Sales (P/S)1.48
P/FCF Ratio-4.81
Enterprise Value/Market Cap3.79
Enterprise Value/Revenue4.53
Enterprise Value/Gross Profit15.62
Enterprise Value/Ebitda8.09
Forecast
1Y Price Target
$9.25Price Target Upside20.60% 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 19, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The call presented a balanced view with strong points such as a robust charter backlog, advancements in fleet technology, and high fleet utilization. However, significant challenges were highlighted, including the impact of an idle rig, high dry docking costs, and a dividend reduction. The sentiment of the call appears neutral as both positive and negative aspects were equally emphasized.Q2-2025 Updates
Positive Updates
Strong Charter Backlog and Customer Base
SFL's charter backlog stands at $4.2 billion, with about 2/3 of this to customers with investment-grade ratings, providing unique cash flow visibility and resilience in the current market volatility.
Advancements in Fleet Technology
SFL has advanced its fleet technology with 11 vessels now capable of operating on LNG fuel, including 5 new builds under construction, enhancing their operational efficiency.
New 5-Year Charters with Maersk
SFL secured new 5-year charters for three 9,500 TEU container vessels with Maersk, adding $225 million to the backlog starting 2026.
High Utilization Rates
Overall fleet utilization was 98.1% in Q2, adjusted for unscheduled technical off-hire it was at 99.9%, indicating high operational efficiency.
Dividend Yield
The declared dividend of $0.20 per share represents a yield of approximately 9%.
Negative Updates
Idle Drilling Rig Impacting Financials
The drilling rig Hercules remained idle, impacting near-term financial results due to market turmoil and oil price volatility.
High Dry Docking Costs
The quarter experienced higher dry docking costs of approximately $16.5 million, compared to a normalized average of $5 million.
Dividend Reduction
The dividend was adjusted to $0.20 per share due to the current idle status of the Hercules rig and recent asset divestments, reducing near-term cash flow generation.
Reduced Revenue from Vessel Sales
Recent sales of vessels, including 57,000 deadweight dry bulk vessels, have increased available capital but reduced near-term revenue.
Increased Operating Expenses
Operating and G&A expenses increased to approximately $83 million from $78 million in the previous quarter.
Company Guidance
During the SFL Second Quarter 2025 Conference Call, several key metrics and financial highlights were discussed. The company announced a dividend of $0.20 per share, marking the 86th consecutive dividend, with a yield of approximately 9% based on the share price the previous day. SFL reported revenues of $194 million for the quarter and an EBITDA equivalent cash flow of $112 million, with a 12-month EBITDA equivalent totaling $526 million. The charter backlog was stated at $4.2 billion, with two-thirds contracted with investment-grade customers. The company also emphasized its fleet renewal strategy, having sold 57,000 deadweight dry bulk vessels and older Capesize bulkers, alongside new 5-year charters for three 9,500 TEU container vessels, adding $225 million to the backlog from 2026 onwards. Operational efficiency improved significantly, with utilization for the shipping fleet at 98.1% and 99.9% when adjusted for unscheduled technical off-hire. The Hercules drilling rig remained idle, impacting near-term financial results, with warm stacking costs targeted around $60,000 per day. SFL maintained a strong liquidity position with over $300 million in available liquidity, including undrawn credit lines and unencumbered vessels valued at approximately $192 million.SFL Corporation Financial Statement Overview
Summary
SFL Corporation's financial performance is mixed. While profitability is maintained with a positive net profit margin, declining revenue growth and high leverage are significant concerns. The balance sheet shows high debt levels, and cash flow challenges persist with negative free cash flow growth.Income Statement
SFL Corporation's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth by 27.9%, which is concerning. However, the company maintains a positive net profit margin of 4.03% and a strong EBIT margin of 26.74%. The gross profit margin has decreased compared to previous years, indicating potential cost pressures. Overall, while profitability remains, the declining revenue trend poses a risk.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.79, indicating significant leverage, which could be risky in volatile markets. Return on equity has decreased to 3.17% in the TTM, reflecting lower profitability relative to equity. The equity ratio stands at 25.53%, suggesting a moderate level of equity financing. The high leverage and declining ROE are key concerns.60
Neutral
Cash Flow
Cash flow analysis shows a negative free cash flow growth rate of -21.02% in the TTM, highlighting cash generation challenges. The operating cash flow to net income ratio is 0.35, indicating moderate cash flow efficiency. The negative free cash flow to net income ratio of -0.45 suggests that the company is not generating sufficient free cash flow relative to its net income, which could impact future investments.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 852.02M | 891.62M | 744.33M | 670.39M | 513.40M | 471.05M |
| Gross Profit | 247.29M | 309.14M | 236.51M | 277.42M | 218.33M | 204.13M |
| EBITDA | 477.50M | 563.45M | 468.33M | 507.93M | 343.69M | 18.01M |
| Net Income | 34.31M | 130.65M | 83.94M | 130.06M | 76.47M | -346.07M |
Balance Sheet | ||||||
| Total Assets | 3.95B | 4.11B | 3.73B | 3.86B | 3.46B | 3.09B |
| Cash, Cash Equivalents and Short-Term Investments | 158.68M | 138.29M | 191.24M | 195.65M | 166.83M | 244.25M |
| Total Debt | 2.82B | 2.84B | 2.57B | 2.67B | 2.41B | 2.22B |
| Total Liabilities | 2.94B | 2.98B | 2.69B | 2.77B | 2.48B | 2.30B |
| Stockholders Equity | 1.01B | 1.13B | 1.04B | 1.09B | 982.33M | 795.65M |
Cash Flow | ||||||
| Free Cash Flow | -149.59M | -275.00M | 78.67M | -247.37M | -288.03M | 156.43M |
| Operating Cash Flow | 331.18M | 369.86M | 343.09M | 355.13M | 293.60M | 276.48M |
| Investing Cash Flow | -423.53M | -617.50M | -103.89M | -499.09M | -389.05M | 176.34M |
| Financing Cash Flow | 62.11M | 216.70M | -262.06M | 178.37M | 25.02M | -431.43M |
SFL Corporation Technical Analysis
Negative
7.67
Price Trends
8.40
Negative
8.37
Negative
8.48
Negative
Market Momentum
-0.15
Positive
35.06
Neutral
9.16
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 7.67 is below the 20-day moving average (MA) of 7.94, below the 50-day MA of 8.40, and below the 200-day MA of 8.48, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 35.06 is Neutral, neither overbought nor oversold. The STOCH value of 9.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | 1.50B | 5.38 | 12.73% | 3.68% | -7.24% | -16.39% | |
81 Outperform | 1.14B | 2.96 | 23.89% | 6.12% | 4.43% | 17.82% | |
80 Outperform | 1.68B | 3.83 | 12.79% | 3.70% | 5.63% | -17.54% | |
79 Outperform | 1.38B | 4.75 | 11.82% | 0.42% | -0.47% | -22.23% | |
67 Neutral | 1.59B | 14.04 | 11.75% | 10.03% | -7.73% | -39.13% | |
58 Neutral | $1.02B | 29.37 | 3.35% | 13.17% | 3.51% | -74.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
SFL
SFL Corporation
7.67
-2.65
-25.68%
CMRE
Costamare
12.50
1.32
11.81%
GNK
Genco Shipping
18.32
0.05
0.27%
GSL
Global Ship Lease
31.88
7.25
29.44%
NMM
Navios Maritime Partners
47.76
-14.58
-23.39%
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.