Scorpio Tankers Inc. (STNG) AI Stock Analysis
STNG AI stock analysis summary
AI ResearchScorpio Tankers Inc. (STNG) is a Monaco-based shipping company specializing in the seaborne transportation of refined petroleum products. The company generated $1.22B in trailing twelve-month revenue with a net profit margin of 67.2% and EPS of $16.06. Supported by a net cash position of $1.11B, the stock has delivered a 1-year return of 49.7% through October 16, 2026.
- Market cap
- $4.08B
- Revenue (TTM)
- $1.22B
- P/E
- 5.1x fwd 15.6x
- 1Y return
- 49.7% S&P 500 16.8%
- Avg. target
- $100.20 23.0% vs last close
Bull case
- Trailing twelve-month operating margin stands at 59.7%, significantly exceeding the US-listed Energy median of 28.5%.
- The balance sheet carries $1.11B in net cash with a current ratio of 6.93 as of June 30, 2026.
- Quarterly revenue grew 77.5% year-over-year in the period ended June 30, 2026, alongside earnings growth of 382.8%.
Bear case
- Revenue decreased for three straight years from $1.56B in FY2022 down to $938.2M in FY2025.
- Analyst consensus projects next fiscal year revenue to drop 24.8% to $939.4M, with EPS expected to drop 43.7% to $6.61.
- The forward P/E ratio of 15.6x is above the US-listed Energy peer median of 12.7x, accompanied by a PEG ratio of 2.46.
What Scorpio Tankers does
Scorpio Tankers Inc., along with its subsidiaries, operates in global shipping markets, specializing in the seaborne transportation of refined petroleum products. Established in 2009 and based in Monaco, the company operates a fleet of 124 owned, finance leased, or bareboat chartered-in tankers as of March 18, 2022. This fleet comprises 42 LR2 tankers, 6 LR1 tankers, 62 MR tankers, and 14 Handymax tankers, with an average vessel age of approximately 6.2 years. The company utilizes strategic fleet management and operational expertise to handle transportation needs across diverse geographical regions while meeting international safety and environmental requirements.
Growth and profitability
Scorpio Tankers experienced significant top-line volatility across recent fiscal periods. Revenue climbed from $540.8M in FY2021 to $1.56B in FY2022 before declining to $1.34B in FY2023, $1.24B in FY2024, and $938.2M in FY2025. In FY2025, revenue fell 24.6%, gross margin stood at 46.2%, and net income totaled $344.3M with an EPS of $5.61. Over the 5-year period from FY2020 to FY2025, revenue grew at a CAGR of 0.5%. Performance surged in the quarter ended June 30, 2026, delivering quarterly revenue growth of 77.5% year-over-year and quarterly earnings growth of 382.8% year-over-year, which lifted trailing twelve-month revenue to $1.22B and operating margin to 59.7%.
Balance sheet and cash flow
As of June 30, 2026, Scorpio Tankers held $1.84B in cash and short-term investments alongside $728.9M in total debt, creating a net cash balance of $1.11B. The balance sheet carried a current ratio of 6.93 and a debt-to-equity ratio of 0.20 against shareholders' equity of $3.64B. During FY2025, the company generated $491.2M in operating cash flow and $416.8M in free cash flow. Capital expenditures totaled $74.4M, dividends paid were $82.5M, and share buybacks amounted to $309,000.
Valuation and performance
At a last close of $81.45, Scorpio Tankers has a market cap of $4.08B and an enterprise value of $2.96B. The stock trades at a trailing P/E of 5.1x, well below the 15.0x median of its US-listed Energy peers. Its EV/EBITDA stands at 2.8x compared to the sector peer median of 8.0x, while forward P/E is 15.6x against the peer median of 12.7x. Over the past year, the stock returned 49.7%, outpacing the 16.8% return of the S&P 500 (SPY). Over five years, STNG gained 452.4% compared to 83.0% for the index.
STNG dividend
Scorpio Tankers pays a quarterly dividend with an annualized forward payout of $1.80, yielding 2.21%. The payout ratio is 16.4%, and the company has paid dividends for 14 consecutive years. Over the last five years, the dividend grew at an annualized rate of 32.3%. The most recent ex-dividend date was August 17, 2026.
What analysts expect
Wall Street coverage includes 7 Strong Buy, 1 Buy, 1 Hold, and 1 Sell recommendations. The mean price target is $100.20, representing 23.0% upside compared to the last close of $81.45. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $11.74 on revenue of $1.25B. For the next fiscal year, 9 analysts project EPS of $6.61 and revenue of $939.4M, representing a projected revenue decrease of 24.8%. The company beat EPS estimates in all 4 of the last four quarters, with its next earnings release scheduled for October 29, 2026.
Key risks and what to watch
- Annual net income dropped from $668.8M in FY2024 to $344.3M in FY2025, highlighting earnings cyclicality.
- A projected 43.7% EPS contraction in the next fiscal year could pressure the forward valuation.
- The 5-year revenue CAGR of 0.5% reflects limited long-term compound growth across shipping market cycles.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this STNG AI stock analysis
This page is an AI-written research summary of Scorpio Tankers Inc. (STNG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: STNG income statement, STNG balance sheet, STNG key metrics, STNG analyst forecast, STNG chart. See the STNG stock overview for the latest quote and news.
STNG AI stock analysis FAQ
What is Scorpio Tankers' dividend yield and payout schedule?
Scorpio Tankers pays a quarterly dividend with a forward annual payout of $1.80 per share, resulting in a dividend yield of 2.21%. The company has maintained consecutive dividend payments for 14 years and operates with a payout ratio of 16.4%.
How leveraged is Scorpio Tankers' balance sheet?
As of June 30, 2026, the company holds net cash of $1.11B, with $1.84B in cash and short-term investments against $728.9M in total debt. Its debt-to-equity ratio is 0.20, and its current ratio is 6.93.
What are analysts expecting for Scorpio Tankers' upcoming earnings?
For the fiscal year ending December 31, 2026, analysts estimate revenue of $1.25B and EPS of $11.74, reflecting 113.0% EPS growth. The company has beaten EPS estimates in each of the last 4 quarters, with next earnings scheduled for October 29, 2026.
What does Scorpio Tankers' fleet look like?
As of March 18, 2022, Scorpio Tankers operated 124 tankers, including 42 LR2, 6 LR1, 62 MR, and 14 Handymax vessels. The fleet had an average age of approximately 6.2 years.