Scorpio Tankers Inc. Common Shares (STNG)
Fast GrowerFairStock Score: 79/100 — HIGH CONVICTION
Key Financials
| Current Price | $82.12 |
| Market Cap | $3.8B |
| P/E Ratio | 8.11 |
| ROE | 15.87% |
| Dividend Yield | 2.37% |
| Sector | Energy |
Strengths
- Generates $213 million in annual free cash flow (5.6% yield on market cap)
- Strong Piotroski F-Score of 9/9 indicating robust financial health across profitability, leverage, and efficiency metrics
- Solid return on equity of 11.3% above cost of capital
- Conservative balance sheet with debt-to-equity of just 0.19, providing financial flexibility
- Altman Z-Score of 4.1 confirms minimal bankruptcy risk and strong solvency
AI Analysis
Scorpio Tankers Inc. Common Shares is a small-cap energy company valued at $3.8 billion. The business generates $938 million in annual revenue with a 13.7% net margin and $213 million in free cash flow. From a quality standpoint, Scorpio shows near-perfect Piotroski F-Score of 9/9 indicating exceptional financial health and healthy Altman Z-Score of 4.1. On valuation, the stock is attractively valued at 11.0x earnings, with a modest 23% margin of safety vs Graham Number. Growth dynamics show revenue growing at 23.9% and profit growth of 86.9%. The 2.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 79/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Scorpio's 24% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. With $213 million in annual free cash flow (5.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer