Scorpio Tankers Profit Margin vs. Return On Equity

STNG Stock  USD 50.66  0.03  0.06%   
Based on Scorpio Tankers' profitability indicators, Scorpio Tankers is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Scorpio Tankers' ability to earn profits and add value for shareholders.

Scorpio Tankers Net Profit Margin

0.43

At this time, Scorpio Tankers' EV To Sales is most likely to slightly decrease in the upcoming years. The Scorpio Tankers' current Operating Cash Flow Sales Ratio is estimated to increase to 0.68, while Sales General And Administrative To Revenue is projected to decrease to 0.08. At this time, Scorpio Tankers' Net Income Applicable To Common Shares is most likely to increase significantly in the upcoming years. The Scorpio Tankers' current Net Income is estimated to increase to about 574.2 M, while Total Other Income Expense Net is forecasted to increase to (150.3 M).
For Scorpio Tankers profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Scorpio Tankers to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Scorpio Tankers utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Scorpio Tankers's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Scorpio Tankers over time as well as its relative position and ranking within its peers.
  
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Is Oil & Gas Storage & Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Scorpio Tankers. If investors know Scorpio will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Scorpio Tankers listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.637
Dividend Share
1.55
Earnings Share
13.97
Revenue Per Share
27.856
Quarterly Revenue Growth
(0.08)
The market value of Scorpio Tankers is measured differently than its book value, which is the value of Scorpio that is recorded on the company's balance sheet. Investors also form their own opinion of Scorpio Tankers' value that differs from its market value or its book value, called intrinsic value, which is Scorpio Tankers' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Scorpio Tankers' market value can be influenced by many factors that don't directly affect Scorpio Tankers' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Scorpio Tankers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Scorpio Tankers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Scorpio Tankers' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Scorpio Tankers Return On Equity vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Scorpio Tankers's current stock value. Our valuation model uses many indicators to compare Scorpio Tankers value to that of its competitors to determine the firm's financial worth.
Scorpio Tankers is rated second in profit margin category among its peers. It is rated fourth in return on equity category among its peers reporting about  0.52  of Return On Equity per Profit Margin. The ratio of Profit Margin to Return On Equity for Scorpio Tankers is roughly  1.92 . At this time, Scorpio Tankers' Net Profit Margin is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Scorpio Tankers by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Scorpio Return On Equity vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Scorpio Tankers

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.52 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Scorpio Tankers

Return On Equity

 = 

Net Income

Total Equity

 = 
0.27
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Scorpio Return On Equity Comparison

Scorpio Tankers is currently under evaluation in return on equity category among its peers.

Scorpio Tankers Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Scorpio Tankers, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Scorpio Tankers will eventually generate negative long term returns. The profitability progress is the general direction of Scorpio Tankers' change in net profit over the period of time. It can combine multiple indicators of Scorpio Tankers, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive IncomeB1.2 B
Operating Income705.1 M740.4 M
Income Before Tax546.9 M574.2 M
Total Other Income Expense Net-158.3 M-150.3 M
Net Income Applicable To Common Shares732.8 M769.5 M
Net Income546.9 M574.2 M
Income Tax Expense-19.1 M-18.2 M
Net Income From Continuing Ops690.4 M724.9 M
Interest Income18.3 M12.1 M
Net Interest Income-167.4 M-175.8 M
Change To Netincome108.6 M114 M
Net Income Per Share 10.44  10.97 
Income Quality 1.58  1.66 
Net Income Per E B T 1.46  0.75 

Scorpio Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Scorpio Tankers. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Scorpio Tankers position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Scorpio Tankers' important profitability drivers and their relationship over time.

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When determining whether Scorpio Tankers is a strong investment it is important to analyze Scorpio Tankers' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Scorpio Tankers' future performance. For an informed investment choice regarding Scorpio Stock, refer to the following important reports:
Check out World Market Map.
For more detail on how to invest in Scorpio Stock please use our How to Invest in Scorpio Tankers guide.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Scorpio Tankers' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Scorpio Tankers at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Scorpio Tankers' income statement, its balance sheet, and the statement of cash flows.
Potential Scorpio Tankers investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Scorpio Tankers investors may work on each financial statement separately, they are all related. The changes in Scorpio Tankers's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Scorpio Tankers's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.