Scorpio Tankers (STNG)
NYSE:STNG
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Scorpio Tankers
(NYSE:STNG)
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Rating:88Outperform
Price Target:
$100.00
▲(32.96% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by very strong financial performance (high margins, robust free cash flow, and sharply reduced leverage) and an attractive valuation (very low P/E with a dividend). Technicals also support the view with a clear uptrend. The earnings call added confidence via strong liquidity and capital return plans, tempered by cyclical/geopolitical and capital-commitment risks.
Positive Factors
Material deleveraging / pro forma net cash
A materially stronger capital structure — with debt down sharply and pro forma net cash — meaningfully reduces refinancing and solvency risk. This durability gives management optionality to fund capex, opportunistic buybacks/dividends, or withstand weaker charter markets without distress.
Negative Factors
Cyclical revenue and TCE sensitivity
Scorpio's top line and margins remain highly exposed to tanker charter rates and seaborne flows. That cyclicality can produce large swings in earnings and free cash flow over months, challenging steady capital returns and creating risk if market softness coincides with near-term obligations.
Read all positive and negative factors
Positive Factors
Negative Factors
Material deleveraging / pro forma net cash
A materially stronger capital structure — with debt down sharply and pro forma net cash — meaningfully reduces refinancing and solvency risk. This durability gives management optionality to fund capex, opportunistic buybacks/dividends, or withstand weaker charter markets without distress.
Read all positive factors
Scorpio Tankers (STNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.02B
Dividend Yield3.19%
Average Volume (3M)1.10M
Price to Earnings (P/E)7.0
Beta (1Y)0.48
Revenue Growth-2.77%
EPS Growth1.00%
CountryUS
Employees24
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)10.70
Shares Outstanding51,762,790
10 Day Avg. Volume943,671
30 Day Avg. Volume1,095,540
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 Cap0.86
Enterprise Value/Revenue3.33
Enterprise Value/Gross Profit6.44
Enterprise Value/Ebitda5.86
Forecast
1Y Price Target
$90.40Price Target Upside20.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)12.69
Revenue Forecast (FY)$1.19B
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 makes money primarily by earning freight revenues from chartering its product tanker vessels to customers to transport refined petroleum products.
Key revenue streams and mechanics:
- Time charters: Under time charter agreements, ...
Scorpio Tankers Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial picture: robust quarterly earnings (with some one-off vessel sale gains), a large and growing liquidity position, material net debt reduction to a pro forma net cash status, historically low cash breakevens, lower cost of capital, sizable share buyback authorization and a new dividend. Market fundamentals (inventory draws, longer voyage distances and constrained effective fleet growth) support a constructive outlook for tanker rates. Main negatives are geopolitical uncertainty around the Strait of Hormuz, temporary near-term demand declines and some reliance on vessel sale gains and committed newbuilding outflows. Overall, the positives—balance sheet strength, capital allocation flexibility, low breakevens and favorable market setup—outweigh the lowlights.Positive Updates
Strong Quarterly Results
Reported adjusted EBITDA of $214 million for Q1 2026 and management-reported adjusted net income of $151 million; CFO reported IFRS net income of $216 million (includes a $66 million gain on four vessel sales).
Negative Updates
Geopolitical Uncertainty (Middle East/Strait of Hormuz)
Ongoing conflict in the Middle East and uncertainty around when transit through the Strait of Hormuz will normalize create operational and market uncertainty; management notes timing of developments remains unclear and evolving.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Results
Reported adjusted EBITDA of $214 million for Q1 2026 and management-reported adjusted net income of $151 million; CFO reported IFRS net income of $216 million (includes a $66 million gain on four vessel sales).
Read all positive updates
Company Guidance
Management guided that Q1 produced $214 million of adjusted EBITDA and $151 million of adjusted net income (IFRS net income $216 million), and expects cash to reach roughly $2.0 billion early this summer from a May 1 balance of ~$1.4 billion (pro forma $1.8 billion incl. pending vessel sales) with total available liquidity of ~ $2.5 billion (including $712 million revolver) and a pro forma net cash position of $876 million (actual net cash $479 million adjusted for pending sales) after reducing net debt by $3.8 billion since 2021. They highlighted a record-low cash breakeven of ~ $11,000/day and cash-generation sensitivity of ~$260M/year at $20k/day, ~$548M at $30k/day, ~$836M at $40k/day and ~$1.1B at $50k/day. Capital actions include repurchasing ~1.3–1.4M shares for ~$100M, a new $500M buyback authorization, a $0.45 quarterly dividend, $375M 1.75% convertibles due 2031 (conversion premium >$100/share), a $50M Bank of America facility at 120 bps (7 years), $368M secured bank debt (margins <200 bps, $198M revolving), $200M five‑year unsecured notes trading >103, 10 newbuild contracts with ~$641M remaining commitments ( ~$69M paid in 2026), sales of 12 older vessels (including a $66M gain on four) and nine additional sales pending; market context cited order book ~18% of fleet, expected fleet growth ~3% over three years, 37 newbuild orders YTD, global refined product inventories down >80 million barrels YTD, U.S. draws 12 of last 13 weeks, seaborne exports down ~1.9M bpd in April, and Q2 refined demand expected -1.5M bpd YoY then +2.4M bpd rebound in Q3.Scorpio Tankers Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
83
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 938.22M | 1.24B | 1.34B | 1.56B | 540.79M |
| Gross Profit | 536.91M | 433.10M | 709.11M | 809.89M | 939.62M | -37.76M |
| EBITDA | 590.06M | 591.87M | 945.87M | 908.82M | 1.06B | 146.32M |
| Net Income | 502.34M | 344.29M | 668.77M | 546.90M | 637.25M | -234.44M |
Balance Sheet | ||||||
| Total Assets | 4.08B | 3.92B | 3.83B | 4.23B | 4.56B | 5.01B |
| Cash, Cash Equivalents and Short-Term Investments | 984.32M | 751.96M | 406.74M | 355.55M | 376.87M | 230.41M |
| Total Debt | 581.22M | 619.20M | 861.97M | 1.59B | 1.93B | 3.12B |
| Total Liabilities | 666.02M | 718.84M | 967.77M | 1.67B | 2.05B | 3.18B |
| Stockholders Equity | 3.41B | 3.20B | 2.87B | 2.55B | 2.51B | 1.84B |
Cash Flow | ||||||
| Free Cash Flow | 475.23M | 491.23M | 731.81M | 842.40M | 734.85M | 26.20M |
| Operating Cash Flow | 592.60M | 491.23M | 825.18M | 865.49M | 769.33M | 73.30M |
| Investing Cash Flow | 457.57M | 272.25M | 307.99M | 43.61M | 571.96M | -52.28M |
| Financing Cash Flow | -485.78M | -344.10M | -1.16B | -930.42M | -1.19B | 21.88M |
Scorpio Tankers Technical Analysis
Neutral
75.21
Price Trends
77.75
Negative
71.89
Positive
63.48
Positive
Market Momentum
-0.06
Positive
35.28
Neutral
17.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STNG, the sentiment is Neutral. The current price of 75.21 is below the 20-day moving average (MA) of 81.95, below the 50-day MA of 77.75, and above the 200-day MA of 63.48, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.28 is Neutral, neither overbought nor oversold. The STOCH value of 17.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
88 Outperform | $4.02B | 7.01 | 15.85% | 3.19% | -2.77% | 1.00% | |
85 Outperform | $3.98B | 6.96 | 27.13% | 6.12% | 14.50% | 69.57% | |
84 Outperform | $2.56B | 5.70 | 21.40% | 3.72% | -2.29% | 31.43% | |
82 Outperform | $1.86B | 9.17 | 17.91% | 13.08% | 36.27% | 109.57% | |
78 Outperform | $2.72B | 7.94 | 29.14% | 6.12% | 4.66% | 85.89% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
55 Neutral | $1.86B | 53.06 | 16.91% | 4.14% | -35.30% | 88.99% |
* Energy Sector Average
STNG
Scorpio Tankers
74.60
35.73
91.95%
DHT
DHT Holdings
16.35
6.00
57.97%
GEL
Genesis Energy
15.37
0.23
1.51%
TNK
Teekay Tankers
70.29
27.10
62.75%
LPG
Dorian LPG
41.70
21.88
110.43%
INSW
International Seaways
76.81
42.88
126.34%
Scorpio Tankers Corporate Events
Scorpio Tankers Posts Strong Q1 2026 Earnings, Hikes Buyback and Sells Vessels Amid Capital Reshuffle
May 5, 2026
On May 5, 2026, Scorpio Tankers reported strong results for the quarter ended March 31, 2026, with net income rising to $216.3 million and adjusted net income of $150.9 million, significantly above the prior-year period. The company’s tanker...
Scorpio Tankers Secures $50 Million Credit Facility for Two LR2 Tankers
Apr 27, 2026
On April 27, 2026, Scorpio Tankers Inc. announced it had secured a commitment from Bank of America for a new credit facility of up to $50 million, dedicated to financing two 2015-built LR2 product tankers, STI Rose and STI Alexis. The seven-year f...
Scorpio Tankers Sets May 5 Release for Q1 2026 Results Amid Active Fleet Renewal
Apr 21, 2026
Scorpio Tankers Inc., a leading petroleum products shipping company listed on the NYSE, is reshaping its fleet with planned sales of six MR and three LR2 product tankers in the second quarter of 2026 while adding multiple MR, LR2 and VLCC newbuild...
Scorpio Tankers to Sell Six Product Tankers for $300 Million as Part of Fleet Optimization
Apr 21, 2026
Scorpio Tankers Inc., a Monaco-based operator of product tankers listed on the NYSE under ticker STNG, provides marine transportation of petroleum products worldwide with a fleet of 87 LR2, MR and Handymax tankers averaging 10.2 years in age. The ...
Scorpio Tankers Sets May 27, 2026 Shareholder Meeting to Elect Directors and Ratify Auditor
Apr 15, 2026
On April 15, 2026, Scorpio Tankers filed a Form 6-K announcing its 2026 annual meeting of shareholders, scheduled for May 27, 2026 in Monaco. Shareholders of record as of April 2, 2026, when 51,762,790 common shares were outstanding, are entitled ...
Scorpio Tankers Raises $375 Million in Convertible Notes, Funds Stock Buyback
Apr 10, 2026
On April 10, 2026, Scorpio Tankers Inc. completed a $375 million private offering of 1.75% convertible senior notes due 2031, including $50 million from the full exercise of the purchasers’ option, structured as senior unsecured debt with fl...
Scorpio Tankers to Sell Two MR Product Tankers for $70 Million in Fleet Renewal Push
Mar 30, 2026
On March 30, 2026, Scorpio Tankers Inc. said it had agreed to sell two 2015-built, scrubber-fitted MR product tankers, STI Brooklyn and STI Black Hawk, for $35 million each, with the deals expected to close in the second quarter of 2026. The dispo...
Scorpio Tankers Boosts Liquidity and Reports Strong Q1–Q2 2026 TCE Rates
Mar 25, 2026
On March 25, 2026, Scorpio Tankers reported updated average daily Time Charter Equivalent rates for the first and second quarters of 2026 across its LR2, MR and Handymax fleets, showing strong realized and forward spot earnings, particularly for L...
Scorpio Tankers Files 2025 Form 20-F and Highlights Ongoing Fleet Renewal
Mar 20, 2026
On March 20, 2026, Scorpio Tankers Inc. announced that it had filed its Annual Report on Form 20-F for the year ended December 31, 2025 with the U.S. Securities and Exchange Commission. The report, which includes the company’s audited 2025 f...
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...
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.