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International Seaways Inc (INSW)
NYSE:INSW
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International Seaways
(NYSE:INSW)
63Neutral
International Seaways (INSW) vs. S&P 500 (SPY)
Market Cap
$1.55B
Dividend Yield16.8%
Average Volume (3M)958.90K
Price to Earnings (P/E)3.8
Beta (1Y)0.23
Revenue Growth-11.21%
EPS Growth-25.50%
CountryUS
Employees2,899
SectorEnergy
Sector Strength45
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)8.40
Shares Outstanding49,194,458
10 Day Avg. Volume974,885
30 Day Avg. Volume958,900
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.75
Price to Cash Flow (P/CF)4.40
P/FCF Ratio4.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$52.75Price Target Upside58.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
International Seaways Business Overview & Revenue Model
Company DescriptionInternational Seaways, Inc. (INSW) is a prominent maritime transportation company that primarily operates in the shipping sector. It is one of the largest tanker companies worldwide, providing energy transportation services for crude oil and petroleum products. The company's fleet includes a diverse range of vessels such as Very Large Crude Carriers (VLCCs), Aframaxes, and Panamaxes, allowing it to serve major global oil companies and traders.
How the Company Makes MoneyInternational Seaways generates revenue through the chartering of its fleet of vessels to transport crude oil and petroleum products across the globe. The company primarily earns money through time charters and spot market voyages. In time charters, customers lease vessels for a fixed period, providing predictable cash flows. In contrast, spot market voyages are shorter-term contracts that depend on current market rates, allowing the company to capitalize on fluctuating demand and pricing. Additionally, strategic partnerships with oil majors and trading houses enhance operational efficiency and contribute to revenue stability. The company's earnings are also influenced by factors such as oil demand, global economic conditions, and shipping regulations.
International Seaways Financial Statement Overview
Summary
International Seaways demonstrates strong profitability with a solid financial position, characterized by low leverage and healthy margins in 2023. However, operational challenges such as negative gross profits and zero operating cash flow in 2024 indicate areas for improvement.Income Statement
International Seaways has shown robust revenue growth over the past years, with a significant revenue increase from 2020 to 2023. The company achieved a net profit margin of 205.83% in 2023, indicating strong profitability, although this was heavily influenced by a substantial decrease in total revenue in 2024. EBIT and EBITDA margins were also healthy in 2023. However, the negative gross profit in 2024 reflects potential operational inefficiencies that need addressing.70
Positive
Balance Sheet
The balance sheet of International Seaways is strong, with a debt-to-equity ratio of 0.04 in 2024, showcasing low financial leverage which is favorable. The equity ratio of 70.41% indicates a solid equity base relative to total assets. The return on equity was significant in 2023, reflecting efficient use of equity capital, although with some fluctuations in subsequent years.75
Positive
Cash Flow
The cash flow statement reveals a mixed picture. Although there was significant free cash flow in 2023, the operating cash flow was zero in 2024, which raises concerns about cash generation from operations. The free cash flow to net income ratio shows variability, which could indicate potential instability in cash management practices.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 951.61M | 1.07B | 864.66M | 272.55M | 421.65M | Gross Profit |
| 627.60M | 627.54M | 470.52M | -37.80M | 169.18M | EBIT |
| 455.23M | 615.43M | 443.37M | -55.15M | 131.50M | EBITDA |
| 614.78M | 744.37M | 558.19M | -17.52M | 100.87M | Net Income Common Stockholders |
| 416.72M | 556.45M | 387.89M | -134.66M | -5.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 157.51M | 186.76M | 323.74M | 97.88M | 199.39M | Total Assets |
| 2.64B | 2.52B | 2.62B | 2.35B | 1.59B | Total Debt |
| 711.74M | 744.53M | 1.07B | 1.13B | 554.93M | Net Debt |
| 554.23M | 617.77M | 830.89M | 1.03B | 355.55M | Total Liabilities |
| 780.35M | 805.06M | 1.13B | 1.18B | 614.50M | Stockholders Equity |
| 1.86B | 1.72B | 1.49B | 1.13B | 972.04M |
| Cash Flow | Free Cash Flow | |||
| 261.96M | 481.77M | 171.12M | -155.21M | 165.58M | Operating Cash Flow |
| 547.14M | 688.40M | 287.80M | -76.19M | 216.14M | Investing Cash Flow |
| -155.02M | -124.27M | 42.80M | 133.29M | 32.37M | Financing Cash Flow |
| -361.38M | -681.12M | -185.79M | -173.84M | -183.07M |
International Seaways Technical Analysis
Neutral
33.24
Price Trends
34.71
Negative
35.53
Negative
41.53
Negative
Market Momentum
-0.52
Negative
44.68
Neutral
30.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSW, the sentiment is Neutral. The current price of 33.24 is above the 20-day moving average (MA) of 32.89, below the 50-day MA of 34.71, and below the 200-day MA of 41.53, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 44.68 is Neutral, neither overbought nor oversold. The STOCH value of 30.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INSW.
International Seaways Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.23B | 3.08 | 23.93% | 2.79% | -16.70% | -24.06% | |
74 Outperform | $1.58B | 8.75 | 17.56% | 9.65% | 2.11% | 13.10% | |
74 Outperform | $3.12B | 6.30 | 21.46% | 12.69% | 13.77% | -24.50% | |
72 Outperform | $1.66B | 2.42 | 24.68% | 4.81% | -7.25% | 31.85% | |
68 Neutral | $499.73M | 10.59 | 8.91% | 14.53% | -2.37% | -52.77% | |
63 Neutral | $1.55B | 3.76 | 23.33% | 16.80% | -11.21% | -25.50% | |
57 Neutral | $7.44B | 4.21 | -3.75% | 6.64% | -0.07% | -64.77% |
* Energy Sector Average
Performance Comparison
INSW
International Seaways
33.24
-13.19
-28.41%
DHT
DHT Holdings
10.60
0.16
1.53%
FRO
Frontline
15.50
-6.55
-29.71%
NAT
Nordic American Tanker
2.53
-0.97
-27.71%
STNG
Scorpio Tankers
35.69
-33.31
-48.28%
TNK
Teekay Tankers
39.27
-15.67
-28.52%
International Seaways Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -6.89% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong financial performance, fleet modernization, and significant shareholder returns while addressing temporary expense challenges.Highlights
Net Income and Adjusted EBITDA
Net income for Q4 2024 was $36 million or $0.72 per diluted share. Excluding a loss on vessel sales, adjusted net income was $45 million or $0.90 per diluted share, and adjusted EBITDA was $95 million.
Fleet Modernization and Optimization
International Seaways modernized its fleet with a vessel swap, selling two older VLCCs and acquiring three ECO MRs built in 2015. This move reduced vessel age and enhanced fleet efficiency.
Strong Balance Sheet and Liquidity
The company ended Q4 2024 with $632 million in total liquidity, including $157 million in cash and $475 million in revolving credit facility capacity. The net loan-to-value ratio is below 16%.
Shareholder Returns
Over $300 million was returned to shareholders in 2024, with a $5.77 dividend representing a 12% yield. A $0.70 dividend has been announced for March 2025, marking a payout ratio of about 77%.
Tanker Market Positioning
International Seaways is positioned to capitalize on strong tanker market conditions, with a spot breakeven rate of about $13,700 per day and TCE fixtures for Q1 2025 at about $26,500 per day fleet-wide.
Lowlights
Higher Expenses
Expenses in Q4 2024 were higher than expected due to the timing of stores and spares, additional repairs and maintenance, and higher G&A expenses due to one-off legal matters.
Temporary Cash Flow Impact
The vessel swap created temporary changes to the balance sheet, requiring the borrowing of $70 million on the revolving credit facility, which was later repaid.
Company Guidance
During the International Seaways, Inc. Fourth Quarter 2024 Earnings Conference Call, key financial metrics and strategic moves were highlighted. The company reported a net income of $36 million, or $0.72 per diluted share, for the fourth quarter. Adjusted net income, excluding a loss on vessel sales, was $45 million, or $0.90 per diluted share, with an adjusted EBITDA of $95 million. A significant fleet modernization was achieved through a vessel swap, selling two older VLCCs and acquiring three ECO MRs built in 2015, for a $3 million cash outlay. The company ended the quarter with $632 million in total liquidity, comprising $157 million in cash and $475 million from a revolving credit facility. Net debt stood at $695 million with a net loan-to-value ratio below 16%. A dividend of $0.70 per share was announced, with a payout ratio of about 77%, contributing to over $300 million returned to shareholders in 2024. The fleet's spot breakeven rates were around $13,700 per day. Looking forward, the company anticipates continued strong tanker demand and plans to maintain a balanced capital allocation approach to support fleet renewal and shareholder returns.International Seaways Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
International Seaways Adjusts Executive Compensation Strategy
Neutral
Mar 18, 2025
On March 12, 2025, International Seaways’ Human Resources and Compensation Committee approved compensation adjustments for several key executives, including salary increases for the CFO, CAO, and Controller, retroactive to January 1, 2025. The committee also enhanced the annual equity target opportunities for the CEO and other senior executives, reflecting a strategic move to align executive incentives with company performance, potentially impacting stakeholder interests and company operations.
DividendsBusiness Operations and StrategyFinancial Disclosures
International Seaways Reports Strong 2024 Financial Results
Positive
Feb 27, 2025
On February 27, 2025, International Seaways reported its financial results for the fourth quarter and full year of 2024, highlighting a net income of $36 million for the fourth quarter and $417 million for the year. The company executed a fleet optimization program, exchanging older vessels for newer ones, and maintained a robust balance sheet with $632 million in liquidity. Despite a decrease in shipping revenues compared to 2023, the company declared a combined dividend of $0.70 per share for March 2025, reflecting a strong capital allocation strategy and commitment to shareholder returns.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.