Scorpio Tankers Inc. (STNG) Stock Analysis 2026

EnergyProduct Tanker Shipping

BriMind AI Score

Proprietary
38
Weak
Price CAGR
7.1%
1Y Return
+60.7%
Analyst Upside
+13.6%
Rev Growth
77.5%

Score based on historical price CAGR, revenue growth, analyst upside, and valuation factors. Updated daily.

AI scores and price targets are for informational and educational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research before making investment decisions. Full Disclaimer →

About Scorpio Tankers Inc.

Scorpio Tankers operates one of the largest fleets of product tankers — vessels carrying refined products such as gasoline, diesel, and jet fuel rather than crude oil. Product tanker demand is driven by refinery location relative to consumption, and has benefited structurally from refining capacity closing in importing regions while new capacity is built in exporting ones, lengthening the average voyage.

How Scorpio Tankers Makes Money

Scorpio charters its LR2, LR1, MR, and Handymax product tankers on spot and time charter markets, earning time charter equivalent revenue per vessel day. The company has actively managed its capital structure, reducing debt and repurchasing shares substantially during strong markets. Fixed operating costs mean spot rate movements drive disproportionate swings in profitability and free cash flow.

Scorpio Tankers Revenue & Profitability Breakdown

This chart shows how Scorpio Tankers's revenue flows through to profit. Each row deducts a layer of costs: first the direct cost of making products/services (Cost of Revenue), then operating expenses like marketing and R&D, then taxes. What remains at the bottom is net income — the actual profit shareholders own. High gross and net margins indicate a business with strong pricing power and efficiency.

Revenue
$1.22B
Cost of Revenue
-$328.6M
Gross Profit
$887.0M73.0% margin
Operating Expenses
-$160.8M
Operating Income
$726.2M59.7% margin
Net Income
$816.4M67.2% margin
Gross Margin
73.0%
Operating Margin
59.7%
Net Margin
67.2%

Key Financial Metrics

Scorpio Tankers Inc. trades at a trailing P/E of 5.30x, generates $271.9M in free cash flow, runs a debt/equity ratio of 20.03, and converts shareholder equity into profit at a 24.6% return on equity. For context: P/E ratio measures how much you pay for $1 of earnings (lower = cheaper, but fast-growing companies command higher P/E); Free Cash Flow is the cash left after running the business; Debt/Equity shows how leveraged a company is; Return on Equity shows how efficiently it turns shareholder capital into profit.

Market Cap
$4.26B
P/E (Trailing)
5.30
P/E (Forward)
13.88
PEG Ratio
2.46
Price / Book
1.06
Revenue
$1.22B
Revenue Growth
77.5%
Earnings Growth
382.8%
EPS (Trailing)
$16.06
EPS (Forward)
$6.14
Gross Margin
73.0%
Operating Margin
59.7%
Net Margin
67.2%
Return on Equity
24.6%
Return on Assets
8.2%
Free Cash Flow
$271.9M
Debt / Equity
20.03
Current Ratio
6.93
Quick Ratio
6.32
Beta
-0.18
Dividend Yield
2.1%
Payout Ratio
10.7%
Insider Ownership
16.7%
Inst. Ownership
75.0%
Short % Float
4.2%
Book Value / Share
$80.02

Wall Street Analyst Consensus

Wall Street analysts covering Scorpio Tankers Inc. currently haven't converged on a clear consensus rating, with a mean 12-month price target of $98.80. Analysts set these targets after researching a company's earnings, competitive position, and industry trends — Strong Buy / Buy means the majority expect meaningful upside, while Hold means fair value near the current price rather than a sell signal.

Mean Target$98.80

Intrinsic Value Estimates for STNG

We use 3 valuation models to estimate STNG's intrinsic value. Intrinsic value is what a stock is truly worth based on the company's fundamentals, independent of what the market prices it at today. If multiple models agree the stock is undervalued, that convergence is a stronger signal.

Graham Number
$170.05
Benjamin Graham's formula: √(22.5 × EPS × Book Value). A conservative floor value for stable, profitable companies. Works best for value-oriented businesses.
P/E Based (15× trailing)
$240.90
Multiplies trailing 12-month earnings per share by 15× — a historically average P/E for the stock market. Simple but ignores future growth.
P/E Based (15× forward)
$92.03
Multiplies next year's estimated earnings per share by 15×. More forward-looking; useful for high-growth companies where current earnings understate potential.
Fair Value Range
$92.03 – $240.90
Average Estimate
$167.66

Intrinsic value estimates use simplified models (Graham, DCF, P/E) and conservative assumptions. They should be used as one input among many — not as sole buy/sell guidance. For advanced analysis, see the full platform.

Technical Price Signals

STNG is currently in a mixed technical position. Moving averages smooth out day-to-day volatility to reveal the underlying trend — a Golden Cross (50MA crosses above 200MA) is a classic bullish signal, a Death Cross is bearish, though both are lagging indicators that confirm trends rather than predict them.

50-Day MA
$81.17
200-Day MA
$74.60

STNG Investment Case: Bull vs Bear

STNG's investment case breaks down into 4 bull points and 4 bear points below. The bull case outlines the key reasons the stock could outperform — competitive advantages, growth catalysts, and market tailwinds. The bear case highlights the most significant risks. A strong bull case with manageable bear risks typically makes for a more compelling investment.

Bull Case (Reasons to Buy)

  • Refinery closures in consuming regions and new capacity in exporting regions structurally lengthen product voyages, raising tonne-mile demand.
  • Trade route disruption and sanctions-driven rerouting further extend average voyage distances.
  • Aggressive debt reduction and share repurchases during strong markets have meaningfully improved per-share economics.
  • The product tanker order book remains modest relative to the size of the existing fleet.

Bear Case (Key Risks)

  • Product tanker rates are highly volatile and sensitive to refining margins and arbitrage economics that can close abruptly.
  • New refining capacity coming online in importing regions would shorten trade routes and reduce tonne-mile demand.
  • Weak global fuel demand, whether from recession or efficiency gains, reduces cargo volumes directly.
  • Fleet age and environmental regulation create future capital expenditure requirements.

What to Watch: STNG Key Metrics

Time charter equivalent by vessel class
Fleet utilisation and spot exposure
Net debt and cash breakeven
Share count reduction
Global refining capacity changes

STNG Stock — Frequently Asked Questions

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Data sources: Financial metrics and market data sourced from company SEC filings, earnings releases, and investor relations disclosures. Price data, analyst consensus targets, and fundamental financials provided by financial market data providers. ETF data sourced from official fund prospectuses and index provider publications. AI scores and price targets are proprietary estimates — see our Methodology and Disclaimer for details.
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