STNGScorpio Tankers Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.8×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
Margin-driven, fat margins on slower asset turns. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is STNG?
Scorpio Tankers Inc. earns 9.2% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.15 points above what the capital costs: growth creates value
- Operating margin
- 38%
Operating margin · Oil & Gas Midstream median 30% · fiscal year to FY2025
- Cash conversion
- 1.75×
Cash conversion · 1.37× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 27% |
| FY2021 | −17% |
| FY2022 | 51% |
| FY2023 | 53% |
| FY2024 | 61% |
| FY2025 | 38% |
Details›
- Operating marginfiscal year to FY2025
- 38%
- Net marginfiscal year to FY2025
- 37%
- Free cash flow margin
- −8.7%
- Revenue, trailing twelve months
- $938M
- Free cash flow, trailing twelve months
- −$81M
- Net income, trailing twelve months
- $344M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Oil & Gas Midstream
Ranks #2 of 22 by RyuScore