Ship Finance International Limited owns and operates vessels and offshore related assets in Bermuda, Cyprus, Malta, Liberia, Norway, Singapore, the United Kingdom, and the Marshall Islands. It is also involved in the charter, purchase, and sale of assets. The company has a P/E ratio of 17.87.
The average volume for Ship Finance International has been 465,000 shares per day over the past 30 days. Ship Finance International has a market cap of $1.7 billion and is part of the transportation industry. Shares are up 6.8% year-to-date as of the close of trading on Wednesday.
Ship Finance International rates as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the ratings report include:
The gross profit margin for SHIP FINANCE INTL LTD is rather high; currently it is at 56.68%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, SFL's net profit margin of 25.52% significantly outperformed against the industry.
SFL, with its decline in revenue, slightly underperformed the industry average of 3.1%. Since the same quarter one year prior, revenues slightly dropped by 7.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
In its most recent trading session, SFL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
The debt-to-equity ratio of 1.46 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, SFL has a quick ratio of 0.65, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SHIP FINANCE INTL LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.
TARGET 1 Price: 18.74 Profit: 7% , for a typical rally.
Stop Limit/Trailing Stop Limit: 17.18 Loss: 1.9%
Profit/Loss Ratio: 3.7 : 1 - Good