Scorpio Tankers (STNG) AI Stock Analysis

• Market Cap: $3.10B
• Dividend Yield: 2.63%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.50
• Revenue Growth: -34.54%
• EPS Growth: -42.46%
• Country: US
• Employees: 24
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.41
• Shares Outstanding: 51,016,290
• 10 Day Avg. Volume: 1,260,325
• 30 Day Avg. Volume: 1,045,118
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 3.10
• 1Y Price Target: $66.00
• Price Target Upside: 8.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 81 Outperform
• Price Target: $54.00 ▼(-10.96% Downside)

Scorpio Tankers receives a strong overall score driven by robust financial performance and attractive valuation. The positive earnings call further supports the outlook, despite some technical caution due to potential overbought conditions. The company's strategic positioning and efficient operations provide a solid foundation for future growth.

Positive Factors

Operational Efficiency

The completion of dry docks for multiple vessels enhances fleet efficiency, reducing downtime and operational costs, thus supporting long-term profitability.

Liquidity Position

A strong liquidity position with significant cash reserves and reduced lease obligations enhances financial stability and flexibility for future investments.

Market Outlook

Positive market outlook driven by increased OPEC production and demand for refined products supports long-term revenue growth and market positioning.

Negative Factors

Revenue Decline

Declining revenue trends may challenge future growth, indicating potential issues in market demand or competitive pressures that need addressing.

Geopolitical Risks

Geopolitical risks and economic uncertainties can disrupt operations and market conditions, impacting long-term strategic planning and profitability.

Cautious Capital Allocation

Conservative capital allocation in response to uncertainties may limit growth opportunities and delay strategic investments, affecting long-term expansion.

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 bareboat chartered-in tankers, including 42 LR2, 6 LR1, 62 MR, and 14 Handymax with a weighted average age of approximately 6.2 years. Scorpio Tankers Inc. was incorporated in 2009 and is based in Monaco.

How the Company Makes Money

Scorpio Tankers generates revenue primarily through the time and voyage chartering of its fleet. The company earns money by leasing its vessels to third parties for predetermined periods (time charters) or for specific voyages (voyage charters), with rates typically influenced by market conditions, shipping demand, and operational costs. Additionally, Scorpio Tankers may engage in spot market transactions, which can yield higher returns in favorable market conditions. The company's revenue model is supported by its strong operational efficiency, strategic fleet management, and a focus on maintaining a competitive edge through modern, eco-friendly vessels. Partnerships with oil companies and refiners also contribute to stable business relationships and revenue opportunities.

Scorpio Tankers Financial Statement Overview

Summary

Scorpio Tankers is financially robust with excellent profitability margins and efficient cash flow management. Despite a decline in revenue, the company maintains a stable balance sheet with a strong equity base and manageable debt levels. Future growth hinges on addressing the declining revenue trend while continuing to leverage cash flow efficiency.

Income Statement

Scorpio Tankers has demonstrated robust profitability with a strong net profit margin of 48.1% and a gross profit margin of 54.4% TTM. The EBIT margin stands at 50.3%, reflecting efficient cost management. However, the revenue has shown a declining trend from previous years, which could be a concern for sustaining future growth.

Balance Sheet

The company has a healthy equity ratio of 73.5%, indicating a strong equity base relative to total assets. The debt-to-equity ratio is 0.33, showing a manageable level of debt. However, total assets have decreased over the years, suggesting that asset management could be improved.

Cash Flow

Scorpio Tankers has a positive free cash flow growth of 11.1% TTM, a positive sign of cash generation capability. The operating cash flow to net income ratio of 1.3 TTM indicates strong cash generation relative to earnings. Despite a decline in revenue, the cash flow position remains healthy.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.24B	1.34B	1.56B	540.79M	915.89M
Gross Profit	579.53M	709.11M	809.89M	939.62M	-37.76M	328.37M
EBITDA	719.05M	955.11M	916.11M	1.00B	146.32M	490.86M
Net Income	512.80M	668.77M	546.90M	637.25M	-380.60M	-62.35M
Balance Sheet
Total Assets	3.97B	3.83B	4.23B	4.56B	5.01B	5.16B
Cash, Cash Equivalents and Short-Term Investments	537.64M	406.74M	355.55M	376.87M	230.41M	187.51M
Total Debt	971.25M	861.97M	1.59B	1.93B	3.12B	3.05B
Total Liabilities	1.05B	967.77M	1.67B	2.05B	3.18B	3.09B
Stockholders Equity	2.92B	2.87B	2.55B	2.51B	1.84B	2.07B
Cash Flow
Free Cash Flow	558.99M	731.81M	842.40M	734.85M	26.20M	244.90M
Operating Cash Flow	666.46M	825.18M	865.49M	769.33M	73.30M	419.38M
Investing Cash Flow	224.71M	307.99M	43.61M	571.96M	-52.28M	-174.48M
Financing Cash Flow	-840.74M	-1.16B	-930.42M	-1.19B	21.88M	-259.70M

Scorpio Tankers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.65
• 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 STNG, the sentiment is Positive. The current price of 60.65 is above the 20-day moving average (MA) of 52.76, above the 50-day MA of 47.91, and above the 200-day MA of 43.51, indicating a bullish trend. The MACD of 3.70 indicates Negative momentum. The RSI at 80.18 is Negative, neither overbought nor oversold. The STOCH value of 90.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STNG.

Scorpio Tankers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STNG	81 Outperform	$3.10B	8.12	12.13%	2.63%	-34.54%	-42.46%
INSW	77 Outperform	2.42B	10.22	12.57%	6.66%	-22.01%	-54.34%
TNK	76 Outperform	1.93B	6.95	22.98%	3.57%	-21.71%	-37.58%
DHT	75 Outperform	2.05B	10.78	17.48%	6.12%	-8.89%	21.28%
LPG	72 Outperform	1.39B	28.45	4.73%	9.59%	-42.64%	-84.82%
GEL	49 Neutral	1.98B	-10.39	-191.96%	4.08%	-28.72%	-1173.53%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Scorpio Tankers Corporate Events

Scorpio Tankers Announces Sale of STI Maestro for $42 Million

Scorpio Tankers Inc. announced on September 9, 2025, that it has entered into an agreement to sell its 2020 built scrubber-fitted MR product tanker, STI Maestro, for $42 million. The sale is expected to close in the fourth quarter of 2025, potentially impacting the company’s fleet composition and financial position.

Scorpio Tankers Announces New Charter Agreement and TCE Rate Update

On September 3, 2025, Scorpio Tankers Inc. announced a new time charter-out agreement for its 2014 built LR2 product tanker, STI Orchard, at a rate of $28,350 per day for five years starting in the third quarter of 2025. The company also provided an update on its average daily Time Charter Equivalent (TCE) rates for the third quarter of 2025, highlighting its operational performance and market positioning. These developments are likely to impact the company’s revenue streams and reinforce its standing in the marine transportation industry.

Scorpio Tankers Releases Mid-Year Financial Results for 2025

Scorpio Tankers Inc. released its unaudited interim condensed consolidated financial statements for the six-month period ending June 30, 2025. The report, filed with the U.S. Securities and Exchange Commission, includes a management discussion and analysis of the company’s financial condition and results of operations. This release provides stakeholders with insights into the company’s financial performance and strategic direction, impacting its market positioning and investor relations.

Scorpio Tankers Reports Q2 2025 Financial Results and Announces Dividend

On July 30, 2025, Scorpio Tankers Inc. announced its financial results for the second quarter of 2025, reporting a net income of $73.5 million, which is a significant decrease compared to the $227.3 million reported for the same period in 2024. The company declared a quarterly cash dividend of $0.40 per share, payable on August 29, 2025. Additionally, Scorpio Tankers has entered into a new bareboat charter-out agreement for the MR product tanker, STI Bosphorus, which will participate in the U.S. Government’s Tanker Security Program. The company also exercised purchase options on three vessels and fitted one of its LR2 product tankers with carbon capture technology, reflecting its strategic initiatives to enhance operational efficiency and sustainability.