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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 35.6GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
46.3%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, SFL Corp Ltd. (SFL) receives a "Hold" rating with a composite score of 52.8/100, ranked #243 out of 4446 stocks. Key factor scores: Quality 36/100, Value 72/100, Momentum 75/100. This is quantitative analysis only — not investment advice.
SFL Corp Ltd. (SFL) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SFL Corp Ltd. Do?
SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. The company is also involved in the charter, purchase, and sale of assets. In addition, it operates in various sectors of the maritime, and shipping and offshore industries, including oil, chemical, oil product, container, and car transportation, as well as dry bulk shipments and drilling rigs. As of December 31, 2021, the company owned six crude oil tankers, 15 dry bulk carriers, 35 container vessels, two car carriers, one jack-up drilling rig, one ultra-deepwater drilling unit, two chemical tankers, and four oil product tankers. It primarily operates in Bermuda, Cyprus, Liberia, Norway, Singapore, the United Kingdom, and the Marshall Islands. The company was formerly known as Ship Finance International Limited and changed its name to SFL Corporation Ltd. in September 2019. SFL Corporation Ltd. was incorporated in 2003 and is based in Hamilton, Bermuda. SFL Corp Ltd. (SFL) is classified as a small-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Ole Bjarte Bjarte Hjertaker and employs approximately 20 people. With a market capitalization of $1.4B, SFL is one of the notable companies in the Industrials sector.
SFL Corp Ltd. (SFL) Stock Rating — Hold (April 2026)
As of April 2026, SFL Corp Ltd. receives a Hold rating with a composite score of 52.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.SFL ranks #243 out of 4,446 stocks in our coverage universe. Within the Industrials sector, SFL Corp Ltd. ranks #43 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SFL Stock Price and 52-Week Range
SFL Corp Ltd. (SFL) currently trades at $10.91. The stock lost $0.01 (0.1%) in the most recent trading session. The 52-week high for SFL is $11.11, which means the stock is currently trading -1.8% from its annual peak. The 52-week low is $6.73, putting the stock 62.1% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is SFL Overvalued or Undervalued? — Valuation Analysis
SFL Corp Ltd. (SFL) carries a value factor score of 72/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 10.81x, compared to the Industrials sector average of 28.33x — a discount of 62%. The price-to-book ratio stands at 1.29x, versus the sector average of 2.23x. The price-to-sales ratio is 0.40x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, SFL trades at 1.88x EV/EBITDA, versus 5.70x for the sector.
Based on these multiples, SFL Corp Ltd. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
SFL Corp Ltd. Profitability — ROE, Margins, and Quality Score
SFL Corp Ltd. (SFL) earns a quality factor score of 36/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 46.3%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 12.7% versus the sector average of 3.3%.
On a margin basis, SFL Corp Ltd. reports gross margins of 100.0%, compared to 35.8% for the sector. The operating margin is 33.9% (sector: 6.2%). Net profit margin stands at 14.4%, versus 3.9% for the average Industrials stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
SFL Debt, Balance Sheet, and Financial Health
SFL Corp Ltd. has a debt-to-equity ratio of 252.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. Total debt on the balance sheet is $2.84B. Cash and equivalents stand at $135M.
SFL has a beta of 0.55, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for SFL Corp Ltd. is 67/100, reflecting average volatility within the normal range for its sector.
SFL Corp Ltd. Revenue and Earnings History — Quarterly Trend
In TTM 2026, SFL Corp Ltd. reported revenue of $904M and earnings per share (EPS) of $1.01. Net income for the quarter was $131M. Gross margin was 100.0%. Operating income came in at $307M.
In FY 2024, SFL Corp Ltd. reported revenue of $904M and earnings per share (EPS) of $1.01. Net income for the quarter was $131M. Gross margin was 100.0%. Revenue grew 20.2% year-over-year compared to FY 2023. Operating income came in at $307M.
In FY 2023, SFL Corp Ltd. reported revenue of $752M and earnings per share (EPS) of $0.67. Net income for the quarter was $84M. Gross margin was 100.0%. Revenue grew 12.2% year-over-year compared to FY 2022. Operating income came in at $240M.
In FY 2022, SFL Corp Ltd. reported revenue of $670M and earnings per share (EPS) of $1.60. Net income for the quarter was $203M. Gross margin was 100.0%. Revenue grew 30.6% year-over-year compared to FY 2021. Operating income came in at $275M.
Over the past 8 quarters, SFL Corp Ltd. has demonstrated a growth trajectory, with revenue expanding from $419M to $904M. Investors analyzing SFL stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SFL Dividend Yield and Income Analysis
SFL Corp Ltd. (SFL) does not currently pay a dividend. This is common among smaller companies in the Transportation industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
SFL Momentum and Technical Analysis Profile
SFL Corp Ltd. (SFL) has a momentum factor score of 75/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 28/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
SFL vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing SFL against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SFL vs S&P 500 (SPY) comparison to assess how SFL Corp Ltd. stacks up against the broader market across all factor dimensions.
SFL Next Earnings Date
No upcoming earnings date has been announced for SFL Corp Ltd. (SFL) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SFL? — Investment Thesis Summary
SFL Corp Ltd. presents a balanced picture with arguments on both sides. The quality score of 36/100 flags below-average profitability. The value score of 72/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 75/100, suggesting the trend favors buyers. Low volatility (stability score 67/100) reduces downside risk.
In summary, SFL Corp Ltd. (SFL) earns a Hold rating with a composite score of 52.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SFL stock.
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Institutional Research Dossier
SFL Corp Ltd. (SFL) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
SFL Corporation Ltd. receives a Hold rating, driven by a mixed financial profile. While the company exhibits strong profitability metrics and trades at a significant discount to its sector on valuation multiples, concerns arise from its substantial debt load and recent negative free cash flow. The current valuation appears attractive, but the sustainability of future cash flows and the company's ability to manage its debt obligations are key factors that warrant a cautious approach.
The company's diverse asset portfolio and long-term chartering strategy provide a degree of stability, but exposure to cyclical industries and the capital-intensive nature of the shipping business introduce inherent risks. Investors should closely monitor SFL's debt management, capital allocation decisions, and the overall health of the maritime and offshore industries before considering a more aggressive investment stance.
Business Strategy & Overview
SFL Corporation operates as a maritime and offshore asset owning and chartering company. Its core strategy revolves around acquiring vessels and offshore assets, then chartering them out on medium- to long-term contracts. This approach aims to generate stable and predictable revenue streams, mitigating some of the volatility inherent in spot market shipping rates. The company's diversified fleet, encompassing crude oil tankers, dry bulk carriers, container vessels, car carriers, drilling rigs, and chemical/oil product tankers, further reduces its reliance on any single segment of the shipping industry.
The company's business model is capital intensive, requiring significant upfront investment in vessels and offshore assets. SFL finances these acquisitions through a combination of debt and equity, and its ability to secure favorable financing terms is crucial to its profitability. The chartering strategy is central to SFL's revenue generation. By securing long-term contracts, the company aims to lock in revenue and reduce exposure to short-term fluctuations in shipping rates. However, these contracts also limit SFL's ability to capitalize on sudden spikes in spot market rates.
SFL's strategic positioning involves operating in various sectors of the maritime, shipping, and offshore industries. This diversification is intended to provide resilience against downturns in specific sectors. For example, a decline in oil tanker rates might be offset by strength in container shipping or dry bulk. The company's management team has a track record of opportunistic asset acquisitions and disposals, seeking to optimize the portfolio and generate returns for shareholders. This includes buying assets at distressed prices and selling them when valuations are favorable.
The company's industry context is characterized by cyclicality and capital intensity. The shipping industry is heavily influenced by global trade patterns, economic growth, and commodity prices. Fluctuations in these factors can significantly impact shipping rates and vessel utilization. Furthermore, the industry is subject to regulatory changes, such as environmental regulations, which can increase operating costs and require investments in new technologies. SFL's ability to navigate these challenges and adapt to changing market conditions is critical to its long-term success.
Execution Benchmarks audit
Gross Margin
Core pricing power
100.0%
Sector: 35.8%
+179% VS SCTR
Economic Moat Analysis
SFL Corporation's economic moat is best characterized as Narrow. While the company benefits from certain advantages, they are not substantial enough to create a wide and sustainable competitive edge. The primary source of SFL's narrow moat stems from its established relationships with charterers and its diversified asset base.
The company's long-term chartering strategy fosters relationships with major shipping companies and operators. These relationships can provide a degree of stability and repeat business, giving SFL an advantage over smaller, less established players. However, these relationships are not exclusive and can be disrupted by competitive offers or changes in charterer strategy. The diversified asset base, encompassing various vessel types and sectors, reduces SFL's reliance on any single market. This diversification provides some insulation against downturns in specific shipping segments. However, it also means that SFL lacks the specialization and scale advantages that a pure-play operator in a specific sector might possess.
SFL does not appear to possess significant network effects, switching costs, or cost advantages. The shipping industry is highly competitive, and charterers typically seek the best available rates and terms. Switching costs are relatively low, as charterers can easily switch between different vessel operators. SFL's cost structure is likely comparable to that of its major competitors, and it does not appear to have any proprietary technology or processes that would give it a significant cost advantage.
Efficient scale is not a major factor in SFL's business. While there are economies of scale in vessel operation, these are not substantial enough to create a significant barrier to entry. The shipping industry is characterized by a large number of participants, and new entrants can acquire vessels and compete effectively. Overall, SFL's narrow moat provides some competitive advantages, but it is not a dominant force in the industry. The company's success depends on its ability to manage its assets effectively, maintain strong relationships with charterers, and adapt to changing market conditions.
Financial Health & Profitability
SFL Corporation's financial health presents a mixed picture. The company has demonstrated consistent revenue growth over the past several years, with revenue increasing from $471.05 million in FY2020 to $904.40 million in FY2024. This growth reflects the company's ability to acquire and charter out vessels effectively. However, net income has been more volatile, with a significant loss in FY2020 followed by periods of profitability. The most recent year, FY2024, shows a net income of $130.65 million.
The company's gross margin has consistently been 100%, which is unusual and warrants further investigation. It suggests that the reported revenue is net of certain operating expenses, or that the company's accounting practices differ from standard industry practices. Operating margin has fluctuated, ranging from -29.3% in FY2020 to 47.3% in FY2021, before settling at 33.9% in FY2024. These fluctuations reflect changes in vessel utilization, charter rates, and operating expenses.
A significant concern is SFL's free cash flow (FCF). While the company generated positive FCF in FY2019, FY2021, and FY2023, it has also experienced periods of negative FCF, including a substantial outflow of $516.01 million in FY2024. These negative FCF periods are likely due to investments in new vessels and offshore assets. The company's total debt is substantial, at $2.84 billion, and its debt-to-equity ratio is high at 252.00, significantly exceeding the sector average of 70.00. This high level of leverage increases the company's financial risk and makes it more vulnerable to downturns in the shipping industry.
SFL's return on equity (ROE) is exceptionally high at 46.3%, significantly exceeding the sector average of 9.2%. This high ROE is likely due to the company's high leverage. While a high ROE can be attractive, it also reflects the increased risk associated with high debt levels. The company's current ratio is not available, making it difficult to assess its short-term liquidity. However, its cash balance of $134.55 million provides some cushion against short-term obligations. Overall, SFL's financial health is characterized by strong revenue growth and profitability, but also by high debt levels and volatile free cash flow. The company's ability to manage its debt and generate consistent positive FCF will be crucial to its long-term success.
Valuation Assessment
SFL Corporation's valuation presents an intriguing picture. The company's P/E ratio of 10.3x is significantly below the sector average of 27.7x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 1.8x is substantially lower than the sector average of 5.7x, further indicating potential undervaluation. These metrics suggest that the market is discounting SFL's future prospects, possibly due to concerns about its debt load, cyclicality, or free cash flow generation.
However, it's crucial to consider the context of these valuation multiples. The shipping industry is inherently cyclical, and valuations tend to be depressed during periods of industry downturn. SFL's high debt levels also contribute to its lower valuation multiples, as investors demand a higher risk premium. The negative free cash flow in the most recent year is another factor that could be weighing on the stock's valuation.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of SFL's stock. However, given the volatility of the company's free cash flow and the cyclical nature of the shipping industry, a DCF analysis would be highly sensitive to assumptions about future growth rates and discount rates. A more conservative approach might involve comparing SFL's valuation multiples to those of its peers, while also considering its debt levels and growth prospects.
Based on the available data, SFL's stock appears to be relatively cheap compared to its sector. However, this apparent undervaluation is likely due to the company's high debt levels, cyclicality, and recent negative free cash flow. Investors should carefully consider these factors before investing in SFL's stock. A more in-depth analysis, including a DCF analysis and a comparison to its peers, would be necessary to determine whether the stock is truly undervalued.
Risk & Uncertainty
SFL Corporation faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is the cyclical nature of the shipping industry. Shipping rates and vessel utilization are highly sensitive to global economic growth, trade patterns, and commodity prices. A downturn in the global economy or a decline in trade volumes could lead to lower shipping rates and reduced vessel utilization, which would negatively impact SFL's revenue and profitability.
Another key risk is SFL's high level of debt. The company's debt-to-equity ratio of 252.00 is significantly higher than the sector average, increasing its financial risk. High debt levels make the company more vulnerable to interest rate increases and downturns in the shipping industry. If SFL is unable to generate sufficient cash flow to service its debt obligations, it could face financial distress or even bankruptcy.
Competition is also a significant risk. The shipping industry is highly competitive, with a large number of participants. SFL faces competition from other vessel owners and operators, as well as from alternative modes of transportation. Increased competition could lead to lower charter rates and reduced vessel utilization, which would negatively impact SFL's revenue and profitability.
Regulatory changes pose another risk. The shipping industry is subject to a variety of regulations, including environmental regulations, safety regulations, and labor regulations. Changes in these regulations could increase SFL's operating costs and require investments in new technologies. For example, new environmental regulations aimed at reducing greenhouse gas emissions could require SFL to invest in more fuel-efficient vessels or alternative fuels.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSFL's diversified fleet and long-term charter strategy provide stable revenue streams, mitigating the volatility inherent in the shipping industry.
BULL VIEWThe company's low valuation multiples (P/E and EV/EBITDA) suggest that the stock is undervalued and offers significant upside potential.
BULL VIEWSFL's management team has a proven track record of opportunistic asset acquisitions and disposals, creating value for shareholders.
The Bear Case
BEAR VIEWSFL's high debt levels and recent negative free cash flow raise concerns about its financial stability and ability to fund future growth.
BEAR VIEWThe cyclical nature of the shipping industry exposes SFL to significant revenue and earnings volatility, making it a risky investment.
BEAR VIEWThe company's gross margin of 100% is unsustainable and indicates potential accounting irregularities or unusual business practices.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SFL and 4,400+ other equities.
SFL Corp Ltd. exhibits a 48% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
12.7%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
100.0%
Sector: 35.8%
Operating Margin
Core business profitability
33.9%
Sector: 6.2%
Net Margin
Bottom-line profitability
14.4%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
