Company Overview
Scorpio Tankers Inc. operates within the Energy sector, specifically functioning in the Oil & Gas Midstream industry by facilitating the seaborne transportation of crude oil and refined petroleum products globally. As of March 19, 2026, the company's operational scale is defined by a fleet of 90 wholly owned tankers, comprising 34 LR2, 42MR, and 14 Handymax vessels, supported by a workforce of 24 employees. The firm holds a market capitalization of $3.92B and reported annual revenue of $938.22M, indicating its established position as a significant entity in the global maritime logistics market. These valuation and revenue figures suggest that Scorpio Tankers maintains a substantial asset base and generates considerable top-line income relative to its lean operational staffing model.
Financial Health
The company reported revenue of $938.22M, net income of $344.29M, and EBITDA of $452.80M for the trailing twelve months, highlighting a robust bottom line derived from high-margin shipping contracts. The gap between the revenue figure and the net income reveals a cost structure where the company retains a significant portion of its top-line revenue as profit, with gross margin standing at 65.4%, operating margin at 34.7%, and profit margin at 36.7%. These elevated margin levels indicate that the business model effectively converts revenue into earnings with minimal erosion from operating expenses, while the profit margin exceeding the operating margin suggests favorable tax or non-operating income dynamics. Free cash flow generation stands at $213.17M, which provides the company with substantial financial flexibility to service debt, maintain its fleet, or pursue strategic opportunities without relying heavily on external financing. On the balance sheet, the company holds $751.96M in cash against total debt of $619.20M, resulting in a debt-to-equity ratio of 19.36, which reflects a conservative capital structure given the liquidity surplus. Short-term liquidity is exceptionally strong, evidenced by a current ratio of 9.33, indicating that the company possesses more than nine times the current assets needed to cover its current liabilities. Management effectiveness is demonstrated by a Return on Equity of 11.4% and a Return on Assets of 5.0%, metrics that show the company generates solid returns on its capital employed relative to the heavy asset nature of the shipping industry.
Valuation Assessment
Valuation metrics show a Trailing P/E ratio of 10.77 and a Forward P/E of 15.92, implying that the market expects earnings to grow in the future, as the forward multiple is higher than the trailing multiple. The price-to-book ratio is 1.12, suggesting that the market values the company at a slight premium over its book value, reflecting intangible assets or growth prospects beyond the tangible ship inventory. Alternative valuation measures include a price-to-sales ratio of 4.18 and an EV/EBITDA of 7.59, which provide context for the company's valuation relative to its revenue generation and earnings before interest, taxes, depreciation, and amortization. The stock trades between a 52-week high of $81.85 and a 52-week low of $30.63, with the current price position dependent on market fluctuations but historically showing significant volatility within this $51.22 range. The beta value of -0.39 indicates that the stock exhibits negative correlation to the broader market, meaning it tends to move inversely to general market trends, offering a distinct risk profile compared to positively correlated equities.
Growth & Income
Revenue growth for the year over year is 23.9%, while earnings growth is significantly higher at 80.4%, implying that earnings are expanding at a much faster rate than revenue due to leverage or margin expansion. The company pays a dividend yield of 2.2% with a payout ratio of 23.0%, indicating that the dividend is highly sustainable given that less than a quarter of earnings are distributed to shareholders. This low payout ratio allows the company to retain the majority of its earnings for fleet expansion or debt reduction rather than reinvesting exclusively into growth through acquisitions. Overall, the growth and income profile is characterized by double-digit earnings acceleration, a conservative debt load relative to cash reserves, and a consistent dividend stream supported by strong cash flow generation.