Long-established in the Oil & Gas industry, International Seaways Inc (INSW, Financial) has enjoyed a stellar reputation. It has recently witnessed a daily gain of 4.19%, juxtaposed with a three-month change of 9.4%. However, fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of International Seaways Inc.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 5/10
- Growth rank: 4/10
- GF Value rank: 5/10
- Momentum rank: 3/10
Based on the above method, GuruFocus assigned International Seaways Inc the GF Score of 67 out of 100, which signals poor future outperformance potential.
International Seaways Inc: A Snapshot
International Seaways Inc owns and operates a fleet of oceangoing vessels engaged primarily in the transportation of crude oil and petroleum products. The company's vessel operations are organized into two segments: Crude Tankers and Product Carriers. The fleet consists of ULCC, VLCC, Suezmax, Aframax, and Panamax crude tankers, as well as LR1, LR2, and MR product carriers. With a market cap of $2.09 billion and sales of $1.15 billion, the company has an operating margin of 60.16%.
Profitability Concerns
International Seaways Inc's low Profitability rank can also raise warning signals. This indicates that the company's profitability is lower than that of other companies in the industry, which could impact its ability to generate returns for investors.
Growth Prospects
A lack of significant growth is another area where International Seaways Inc seems to falter, as evidenced by the company's low Growth rank. This suggests that the company's growth rate is slower than its peers, which could limit its future performance.
Conclusion
Given the company's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. While International Seaways Inc has a strong history in the Oil & Gas industry, its current financial and growth indicators suggest that it may struggle to maintain its performance in the future. Therefore, investors should exercise caution when considering this stock.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
