About Scorpio Tankers Inc.
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.
STNG operates in the Transportation, Communications, Electric, Gas, And Sanitary Services | Transportation | approximately 30 employees | led by CEO Emanuele A. Lauro.
$2.6 billion 3.9x P/E 0.9x P/B 2.7x EV/EBITDA 24.7% ROE -7.3% rev. growth 3.3% yield
Scorpio Tankers Inc. earns a Buy rating from our quantitative model with a composite score of 75/100, ranking #14 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 95/100, which places STNG in the top 5 percent of all stocks on this measure. quality at 86/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, STNG ranks 3rd out of 50 peers, placing it in the 94th percentile. At $2.6 billion, the company is a mid-cap name with room to grow.
Quality Analysis
Scorpio Tankers Inc.'s quality score of 86/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 24.7% exceeds the sector median of 12.0%. Gross margins of 63.1% reflect strong pricing power and competitive moats. Operating margins of 61.5% sit above the 15.0% sector average.
Net margins of 53.8% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 95/100 puts STNG in the top 5 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 3.9x, an EV/EBITDA of 2.7x, a price-to-book of 0.9x, a price-to-sales of 2.1x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 72/100 shows STNG is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of -7.3% is declining, which makes the momentum signal more precarious. A beta of 0.38 means Scorpio Tankers Inc. moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support Scorpio Tankers Inc.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
Scorpio Tankers Inc. earns a Buy rating with a composite score of 75/100 and 4 out of 5 stars, ranking #14 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position STNG above the majority of the market.
Explore the full STNG analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
