$Scorpio Tankers (STNG.US)$The Monegasque company, which was...

In the past 5 years, in addition to a sharp contraction of 41% in 2021, revenue increased in 4 years, with an average growth rate of 25%. Operating profit fluctuated greatly due to fluctuations in gross margin. Losses were lost in 2021, while net profit was affected by interest expenses in 2018 and 2019. Interest expenses account for 19% of operating profit in 2022, and the interest burden is heavy. The return on net assets of 29.3% is very high, but previously the yield was very low.

In the first three quarters of 2023, revenue shrank by 6%, operating profit shrank by 3.4%, and net profit increased by 14.3% due to fluctuations in fixed asset sales losses.

The balance ratio has declined from 61.6% to 45% over the past 5 years. The ratio and growth rate of accounts receivable and inventory are normal. There are very few goodwill and other intangible assets. Long-term loans of $264 million, accounting for 10.5% of the net assets of $2,507 million, and the leverage ratio is very low. It seems ready for a low cycle. Treasury stock is $642 million, but common share capital has been increasing recently.

Over the past five years, net operating cash flow has been significantly higher than net investment, generating a large number of shareholders' surpluses.

Currently, the price-earnings ratio is 5.9, the price-earnings ratio is TTM 5.1, the dividend rate is 1.32%, the 5-year average net profit is 52 million, and the corresponding price-earnings ratio is 62. The valuation is not very attractive for cyclical stocks.