Scorpio Tankers (STNG)
NYSE:STNG
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Scorpio Tankers
(NYSE:STNG)
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Rating:82Outperform
Price Target:
$91.00
â–²(28.75% Upside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by strong financial performance (robust cash flow and improved leverage) and favorable technicals (price above key moving averages with positive momentum). Valuation is reasonable with a modest dividend, and the earnings call adds upside with confidence in balance-sheet strength and market conditions, tempered by the company’s cyclical exposure.
Positive Factors
Stronger Balance Sheet / Liquidity
Material deleveraging to a net cash position and roughly $1.7B of available liquidity materially improve financial flexibility. This durable strength reduces refinancing risk, supports dividend policy, funds newbuild commitments, and cushions the business through tanker cycle troughs over the next 2–6 months and beyond.
Negative Factors
Industry Cyclicality
Scorpio's earnings and cash flow remain highly sensitive to product tanker freight-rate cycles. Even with improved liquidity, sustained rate declines could compress EBITDA and FCF materially, forcing cutbacks to dividends or investment; cyclicality is a persistent structural risk for 2–6 months and beyond.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger Balance Sheet / Liquidity
Material deleveraging to a net cash position and roughly $1.7B of available liquidity materially improve financial flexibility. This durable strength reduces refinancing risk, supports dividend policy, funds newbuild commitments, and cushions the business through tanker cycle troughs over the next 2–6 months and beyond.
Read all positive factors
Scorpio Tankers (STNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.66B
Dividend Yield3.19%
Average Volume (3M)1.30M
Price to Earnings (P/E)7.2
Beta (1Y)0.64
Revenue Growth-35.37%
EPS Growth-57.86%
CountryUS
Employees24
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.62
Shares Outstanding51,762,790
10 Day Avg. Volume1,608,578
30 Day Avg. Volume1,302,466
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)0.78
Price to Sales (P/S)2.65
P/FCF Ratio5.07
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue4.00
Enterprise Value/Gross Profit7.87
Enterprise Value/Ebitda7.26
Forecast
1Y Price Target
$81.17Price Target Upside14.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)6.42
Revenue Forecast (FY)$909.22M
Scorpio Tankers Business Overview & Revenue Model
Company Description
Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products in the shipping markets worldwide. As of March 18, 2022, the company's fleet consisted of 124 owned, finance leased, or bare...
How the Company Makes Money
Scorpio Tankers generates revenue primarily through time charters and spot market contracts. The company earns income by leasing its vessels to customers for a fixed period (time charters) or on an as-needed basis (spot market), with revenue depen...
Scorpio Tankers Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive tone: management highlighted transformational progress—material deleveraging to a net cash position, substantial liquidity (~$1.7B), record-low cash breakevens (~$11k/day), robust adjusted EBITDA ($568M for 2025), a raised dividend (+12.5% YoY) and disciplined fleet renewal (10 sales / 10 newbuilds). Market fundamentals were characterized as structurally supportive (increased ton‑miles, higher exports, favorable LR2/MR spot rates). The main cautions related to industry-wide challenges—an aging global fleet, sanctions removing capacity, and cyclical/geo‑political risks—but these were presented as manageable given the company’s strengthened balance sheet and operating leverage. Overall, highlights significantly outweigh the lowlights.Positive Updates
Strong Quarterly and Full-Year EBITDA
Adjusted EBITDA of $152,000,000 in Q4 2025 and $568,000,000 for the full year 2025, demonstrating sustained profitability and cash generation.
Negative Updates
Aging Global Product Tanker Fleet
21% of the product tanker fleet is already over 20 years old and is projected to be ~30% by 2028, creating replacement pressures and potential reliability/regulatory challenges for the broader market.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Full-Year EBITDA
Adjusted EBITDA of $152,000,000 in Q4 2025 and $568,000,000 for the full year 2025, demonstrating sustained profitability and cash generation.
Read all positive updates
Company Guidance
Management guided that Scorpio is structurally stronger heading into 2026, highlighting Q4 adjusted EBITDA of $152.0M and FY2025 adjusted EBITDA of $568.0M (IFRS net income $344.0M), a net cash position of roughly $308–309M (down from ~$3.1B net debt in 2021), cash of $937M plus $767M revolver availability for ~$1.7B total liquidity, and $450M of debt repaid in 2025 including a Q4 prepayment of $154.6M; the company has secured $200M of five‑year senior unsecured notes (trading ~103% of par) and $428M of secured borrowings ( ~$240M drawn revolver). Operationally management reiterated a low cash breakeven of ~$11,000/day per vessel, sale of 10 older ships and contracts for 10 newbuilds (newbuilding commitments slightly over $700M, ~70% of installments due 2027–2029), >70% of the fleet recently completed special surveys with a light forward drydock schedule, and an increased quarterly dividend of $0.45/share (up 12.5% YoY). Market guidance emphasized spot LR2/MR rates near ~$46k/$38k/day, structural demand tailwinds (+~1,000,000 bpd refined product demand growth expected this year; Jan seaborne exports ~22.1M bpd, +~1M y/y), longer ton‑miles (+~20% since 2019), a product tanker orderbook ~19% of the fleet offset by an aging fleet (21% >20 years today, ~30% by 2028) and sanctioned capacity (≈26% Aframax/LR2, 9% MR/Handy), and cash‑flow sensitivity where at $20k/day the company could generate up to $292M/year ( $617M at $30k/day; $942M at $40k/day).Scorpio Tankers Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 938.22M | 1.24B | 1.34B | 1.56B | 540.79M |
| Gross Profit | 613.44M | 709.11M | 809.89M | 939.62M | -37.76M |
| EBITDA | 490.03M | 945.87M | 908.82M | 1.06B | 146.32M |
| Net Income | 344.29M | 668.77M | 546.90M | 637.25M | -234.44M |
Balance Sheet | |||||
| Total Assets | 3.92B | 3.83B | 4.23B | 4.56B | 5.01B |
| Cash, Cash Equivalents and Short-Term Investments | 751.96M | 406.74M | 355.55M | 376.87M | 230.41M |
| Total Debt | 619.20M | 861.97M | 1.59B | 1.93B | 3.12B |
| Total Liabilities | 718.84M | 967.77M | 1.67B | 2.05B | 3.18B |
| Stockholders Equity | 3.20B | 2.87B | 2.55B | 2.51B | 1.84B |
Cash Flow | |||||
| Free Cash Flow | 491.23M | 731.81M | 842.40M | 734.85M | 26.20M |
| Operating Cash Flow | 491.23M | 825.18M | 865.49M | 769.33M | 73.30M |
| Investing Cash Flow | 272.25M | 307.99M | 43.61M | 571.96M | -52.28M |
| Financing Cash Flow | -344.10M | -1.16B | -930.42M | -1.19B | 21.88M |
Scorpio Tankers Technical Analysis
Positive
70.68
Price Trends
67.72
Positive
61.99
Positive
55.37
Positive
Market Momentum
0.36
Positive
59.47
Neutral
55.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STNG, the sentiment is Positive. The current price of 70.68 is below the 20-day moving average (MA) of 73.25, above the 50-day MA of 67.72, and above the 200-day MA of 55.37, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 55.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STNG.
Scorpio Tankers Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.66B | 7.23 | 11.30% | 3.19% | -35.37% | -57.86% | |
81 Outperform | $2.40B | 5.26 | 18.37% | 3.72% | -20.11% | -26.44% | |
76 Outperform | $1.48B | 5.49 | 11.41% | 13.08% | -27.21% | -62.22% | |
74 Outperform | $2.85B | 9.29 | 19.30% | 6.12% | -16.45% | 23.94% | |
69 Neutral | $3.62B | 7.74 | 16.02% | 6.12% | -23.59% | -57.70% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $2.17B | 24.04 | -162.28% | 4.14% | -36.47% | -75.37% |
* Energy Sector Average
STNG
Scorpio Tankers
75.12
37.21
98.17%
DHT
DHT Holdings
18.52
8.16
78.78%
GEL
Genesis Energy
17.93
2.57
16.72%
TNK
Teekay Tankers
72.99
36.21
98.46%
LPG
Dorian LPG
34.59
13.40
63.20%
INSW
International Seaways
73.15
41.93
134.30%
Scorpio Tankers Corporate Events
Scorpio Tankers Sells Three Product Tankers and Secures Long-Term Charters in Fleet Overhaul
Mar 5, 2026
Scorpio Tankers Inc., a Monaco-based tanker owner, operates a 90-vessel fleet of LR2, MR and Handymax product tankers with an average age of 10.1 years. The company is reshaping its asset base through planned disposals of selected LR2 and MR vesse...
Scorpio Tankers Lifts Dividend as Q4 2025 Profit Climbs and Fleet Renewal Accelerates
Feb 12, 2026
Scorpio Tankers reported on February 12, 2026 that it generated net income of $128.1 million for the fourth quarter of 2025, up from $68.6 million a year earlier, and $344.3 million in net income for full-year 2025, down from $668.8 million in 202...
Scorpio Tankers Sets February 12 Date for Q4 2025 Results Amid Active Fleet Renewal
Jan 29, 2026
On January 28, 2026, Scorpio Tankers announced that it will release its fourth-quarter 2025 financial results and host a conference call on February 12, 2026, offering investors and analysts an opportunity to assess recent performance and discuss ...
Scorpio Tankers Swings to Net Cash as Vessel Sales and Debt Prepayments Bolster Liquidity
Jan 13, 2026
On January 13, 2026, Scorpio Tankers reported a sharp strengthening of its balance sheet, detailing that total debt fell from $896.6 million at September 30, 2025 to $628.4 million by January 9, 2026, or $609.2 million on a pro forma basis, while ...
Scorpio Tankers to Sell LR2 Tanker STI Kingsway for $57.5 Million
Jan 12, 2026
On January 12, 2026, Scorpio Tankers Inc. announced that it had entered into an agreement to sell the STI Kingsway, a scrubber-fitted LR2 product tanker built in 2015, for $57.5 million, with the transaction expected to close in the first or secon...
Scorpio Tankers Locks In Five-Year Charters for Two LR2 Product Tankers
Jan 5, 2026
On January 5, 2026, Scorpio Tankers Inc. announced that it has entered into five-year time charter-out agreements for two of its 2015-built LR2 product tankers, STI Rose and STI Alexis, at a daily rate of $29,000 per vessel, with the charters expe...
Scorpio Tankers Announces Sale and Purchase of LR2 Tankers
Dec 16, 2025
On December 16, 2025, Scorpio Tankers Inc. announced agreements to sell two 2016-built LR2 product tankers, STI Goal and STI Gallantry, for $52.3 million each, with sales expected to close in the first quarter of 2026. Concurrently, the company pl...
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.