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SFL Corporation (SFL)
NYSE:SFL
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SFL Corporation
(NYSE:SFL)
67Neutral
SFL Corporation (SFL) vs. S&P 500 (SPY)
Market Cap
$1.12B
Dividend Yield14.79%
Average Volume (3M)1.65M
Price to Earnings (P/E)7.6
Beta (1Y)0.45
Revenue Growth20.22%
EPS Growth52.03%
CountryUS
Employees24
SectorIndustrials
Sector Strength70
IndustryMarine Shipping
Share Statistics
EPS (TTM)1.01
Shares Outstanding145,708,530
10 Day Avg. Volume1,769,050
30 Day Avg. Volume1,648,014
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)N/A
Price to Sales (P/S)1.58
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.50Price Target Upside61.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
SFL Corporation Business Overview & Revenue Model
Company DescriptionSFL Corporation Ltd. is a leading international maritime shipping company that operates in various sectors of the shipping industry, including tankers, bulkers, and offshore services. The company is engaged in the ownership and operation of vessels and follows a diversified business model, providing transportation of crude oil, oil products, dry bulk goods, and other cargoes. SFL Corporation is known for its strong focus on long-term charters and strategic partnerships with industry leaders, ensuring stable revenue streams.
How the Company Makes MoneySFL Corporation makes money primarily through the leasing of its shipping vessels to major international shipping companies and operators under long-term charter agreements. These agreements provide predictable cash flows and reduce exposure to market volatility. The company's revenue streams are diversified across different shipping sectors, including crude oil tankers, dry bulk carriers, and container ships. Additionally, SFL Corporation engages in strategic partnerships and joint ventures, enhancing operational efficiency and expanding its market presence. This diversified approach, along with a focus on asset management and operational excellence, contributes significantly to SFL's earnings.
SFL Corporation Financial Statement Overview
Summary
SFL Corporation exhibits strong revenue and profit growth, highlighted by improved margins and ROE. However, high leverage and negative free cash flow due to capital expenditures present potential risks. The company should focus on balancing growth initiatives with debt management and cash flow improvements to sustain its financial health.Income Statement
The company has demonstrated strong revenue growth, with a notable increase from $744.3 million in 2023 to $891.6 million in 2024, marking a 19.8% growth rate. Gross Profit Margin increased to 34.7% in 2024 from 31.8% in 2023, indicating improved efficiency. Net Profit Margin also improved from 11.3% to 14.7%, showcasing enhanced profitability. EBIT and EBITDA margins are robust, with slight improvements. Overall, the company shows strength in revenue and profit growth, though it should continue to monitor expense management closely.75
Positive
Balance Sheet
The Debt-to-Equity ratio is relatively high at 2.52, indicating significant leverage, which poses potential financial risk. However, the Return on Equity improved to 11.6% in 2024 from 8.1% in 2023, reflecting better utilization of equity. The Equity Ratio remains stable at 27.5%, showing a balanced capital structure. While the company is leveraging effectively for growth, maintaining a high level of debt could be a concern in adverse conditions.68
Positive
Cash Flow
Free Cash Flow has turned negative in 2024 to -$275 million due to high capital expenditures, a decrease from the previous year's positive $78.7 million. The Operating Cash Flow to Net Income ratio is approximately 2.83, illustrating strong cash generation relative to net income, though free cash flow remains a challenge. The company should focus on managing capital expenditures to improve free cash flow.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 891.62M | 744.33M | 670.39M | 513.40M | 471.05M | Gross Profit |
| 309.14M | 236.51M | 277.42M | 218.33M | 204.13M | EBIT |
| 306.72M | 240.18M | 275.47M | 242.84M | 201.37M | EBITDA |
| 560.09M | 468.33M | 507.93M | 343.69M | 18.01M | Net Income Common Stockholders |
| 130.65M | 83.94M | 130.06M | 76.47M | -346.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 138.29M | 191.24M | 195.65M | 166.83M | 244.25M | Total Assets |
| 4.11B | 3.73B | 3.86B | 3.46B | 3.09B | Total Debt |
| 2.84B | 2.57B | 2.67B | 2.41B | 2.22B | Net Debt |
| 2.70B | 2.40B | 2.49B | 2.27B | 2.01B | Total Liabilities |
| 2.98B | 2.69B | 2.77B | 2.48B | 2.30B | Stockholders Equity |
| 1.13B | 1.04B | 1.09B | 982.33M | 795.65M |
| Cash Flow | Free Cash Flow | |||
| -275.00M | 78.67M | -247.37M | -288.03M | 156.43M | Operating Cash Flow |
| 369.86M | 343.09M | 355.13M | 293.60M | 276.48M | Investing Cash Flow |
| -617.50M | -103.89M | -499.09M | -389.05M | 176.34M | Financing Cash Flow |
| 216.70M | -262.06M | 178.37M | 25.02M | -431.43M |
SFL Corporation Technical Analysis
Negative
7.72
Price Trends
8.75
Negative
9.38
Negative
10.13
Negative
Market Momentum
-0.26
Negative
38.48
Neutral
26.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFL, the sentiment is Negative. The current price of 7.72 is below the 20-day moving average (MA) of 7.98, below the 50-day MA of 8.75, and below the 200-day MA of 10.13, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 38.48 is Neutral, neither overbought nor oversold. The STOCH value of 26.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFL.
SFL Corporation Risk Analysis
SFL Corporation disclosed 63 risk factors in its most recent earnings report. SFL Corporation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SFL Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.34B | 2.76 | 15.68% | 4.79% | 6.00% | -9.89% | |
78 Outperform | $696.85M | 2.02 | 26.71% | 8.85% | 5.37% | 16.97% | |
75 Outperform | $922.96M | 2.61 | 12.46% | 0.64% | 2.08% | -14.91% | |
68 Neutral | $1.41B | 6.32 | 11.68% | 15.33% | 9.33% | 98.70% | |
67 Neutral | $1.12B | 7.63 | 12.05% | 14.79% | 20.22% | 52.03% | |
64 Neutral | $1.09B | 3.74 | 13.07% | 5.04% | 37.10% | -17.36% | |
62 Neutral | $7.50B | 12.89 | 3.19% | 3.38% | 3.64% | -14.27% |
* Industrials Sector Average
Performance Comparison
SFL
SFL Corporation
7.72
-3.63
-31.98%
CMRE
Costamare
8.99
-1.63
-15.35%
DAC
Danaos
73.45
3.89
5.59%
GSL
Global Ship Lease
19.84
0.18
0.92%
NMM
Navios Maritime Partners
31.00
-11.76
-27.50%
GOGL
Golden Ocean Group
7.39
-4.39
-37.27%
SFL Corporation Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -27.44% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call reveals strong financial metrics and strategic investments in vessel deliveries and backlog growth, offset by challenges with rig utilization and a decline in operating revenue. The successful financing efforts and positive legal rulings contribute positively, but the operational challenges create a balanced outlook.Highlights
Increased EBITDA and Strong Backlog
EBITDA equivalent for the last 12 months was $581 million, with a fourth quarter net income of $20 million. The fixed-rate backlog stands at approximately $4.3 billion, with 2/3 of this from investment-grade customers.
Dividend Yield and Vessel Deliveries
A quarterly dividend of $0.27 per share was declared, representing around a 10% dividend yield. The company took delivery of 9 new vessels in 2024, including dual-fuel chemical carriers.
Successful Financing Efforts
SFL raised $1.3 billion in financing, including $220 million in senior unsecured bonds. Subsequent to year-end, a $150 million senior unsecured bond loan was raised in the Nordic market.
Seadrill Dispute Ruling
Seadrill was ordered to pay SFL approximately $48 million in a compensation ruling, though this is subject to appeal.
Lowlights
Hercules Rig Utilization Issues
The Hercules rig had a utilization rate of only 67% due to idle periods, and the rig is currently warm stacked with uncertain future contracts.
Decreased Profit Share Contributions
Profit share arrangements contributed only $1.8 million in the fourth quarter, lower than typical quarters due to reduced fuel cost spreads.
Decline in Operating Revenue
According to U.S. GAAP, total operating revenues for the fourth quarter were approximately $229 million, down from $255 million in the previous quarter.
Company Guidance
In the recent conference call, SFL provided guidance highlighting several key metrics. The company's EBITDA equivalent for the last 12 months was reported at $581 million, with a net income of approximately $20 million, translating to $0.15 per share. The fixed rate backlog stands at around $4.3 billion, with two-thirds attributed to investment-grade customers. SFL declared a quarterly dividend of $0.27 per share, representing a 10% yield. The company raised $1.3 billion in financing in 2024, including $220 million in senior unsecured bonds, and recently issued a $150 million senior unsecured bond in the Nordic market. The fleet reported a charter revenue of about $232 million in Q4, with a 98.3% overall utilization rate. The Hercules rig generated $34 million in revenue, but faced a 67% availability due to idle periods. The company also noted a court ruling ordering Seadrill to pay $48 million in compensation, which has yet to be included as an asset on the balance sheet.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.