SFL Corp. Ltd. (SFL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Matson, Inc.

Golar LNG Ltd.

Tidewater, Inc.

International Seaways, Inc.

DHT Holdings, Inc.

FLEX LNG Ltd.

Scorpio Tankers, Inc.

Frontline Plc

Golden Ocean Group Ltd.

Star Bulk Carriers Corp.

SFL Corp. Ltd.

Why is SFL Corp. Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.65%

Poor long term growth as Operating profit has grown by an annual rate 3.62% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.88 times
PRE-TAX PROFIT(Q) At USD 4.47 MM has Fallen at -78.26%
ROCE(HY) Lowest at 3.35%
INTEREST COVERAGE RATIO(Q) Lowest at 222.65

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -21.80%, its profits have fallen by -27.2%
At the current price, the company has a high dividend yield of 590.2

Below par performance in long term as well as near term

Along with generating -21.80% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is SFL Corp. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

SFL Corp. Ltd.

-20.95%

-1.08

36.25%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.86%

EBIT Growth (5y)

3.62%

EBIT to Interest (avg)

1.72

Debt to EBITDA (avg)

4.88

Net Debt to Equity (avg)

2.56

Sales to Capital Employed (avg)

0.22

Tax Ratio

13.91%

Dividend Payout Ratio

106.47%

Pledged Shares

Institutional Holding

37.10%

ROCE (avg)

7.65%

ROE (avg)

13.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.20

EV to EBIT

15.20

EV to EBITDA

7.77

EV to Capital Employed

1.06

EV to Sales

4.60

PEG Ratio

Dividend Yield

590.17%

ROCE (Latest)

6.95%

ROE (Latest)

8.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 2,673.27%

-24What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 4.47 MM has Fallen at -78.26%

ROCE(HY)

Lowest at 3.35%

INTEREST COVERAGE RATIO(Q)

Lowest at 222.65

RAW MATERIAL COST(Y)

Grown by 34.04% (YoY

CASH AND EQV(HY)

Lowest at USD 336.28 MM

DEBT-EQUITY RATIO (HY)

Highest at 263.53 %

OPERATING PROFIT(Q)

Lowest at USD 102.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 53.02 %

NET PROFIT(Q)

Lowest at USD 3.39 MM

Here's what is working for SFL Corp. Ltd.

Dividend Payout Ratio

Highest at 2,673.27%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for SFL Corp. Ltd.

Pre-Tax Profit

At USD 4.47 MM has Fallen at -78.26%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 3.39 MM has Fallen at -82.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 222.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 102.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 53.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at USD 3.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 336.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 263.53 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 34.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 4.72 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income