Simple Concepts Research Group

Cheap Stock to Watch: International Seaways (INSW)

by | Sep 15, 2021 | Stock Picks

International Seaways (INSW) Company Overview & Stock Price Forecast

Stock rating for International Seaways (INSW) and stock price target for 2021. Also, a look at recent financial reporting and key multiples.

cargo ship in ocean

INSW Stock Rating

Stock Price Target: $24.61

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Quick Points

  • Price/Free-Cash-Flow: 15.43
  • Price/Sales: 1.17
  • Prices/Earnings: 7.22
  • EV/EBITDA: 3.72
  • ROIC: -8.98%

Earnings Yield

The current earnings yield for INSW is 26.81%, in comparison to 2.84% for the S&P 500 and 1.33% for the 10-year treasury bond. The median earnings yield for the industry in which INSW operates is 14.28%.

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Stock Price Target: $24.61

Recent Financial Results

  • Priority of returning capital to shareholders (2021 merger-related dividend of $31.5 million, or $1.12 per share; outstanding $50 million share repurchase authorization)
  • Company has paid over $70 million to shareholders since 2020 in the form of buybacks + dividends
  • In Q1 2021, the company completed a merger with Diamond S Shipping, creating the largest U.S.-listed diversified tanker company (the merger is assessed to generate approximately $32 million in cost and revenue by 2022)
  • EBITDA for Q2 of $9.8 million, compared to $96.3 million for the Q2 2020; EBITDA was $20.5 million for Q1 2021
  • Revenue for the Q2 2021 of $44.7 million, compared to $135.3 million for the second quarter of 2020
  • Net loss for Q2 of $18.8 million compared to net income of $64.4 million

Company Overview

International Seaways operates a fleet of vessels for the transportation of crude oil and petroleum products in the International Flag trade. The company operates through two segments: Crude Tankers and Product Carriers. As of Q1 2021, the company owned and operated a fleet of 36 vessels, including 11 large crude carriers, 2 Suezmaxes, 4 Aframaxes/LR2s, 13 Panamaxes/LR1s, and 4 medium range tankers. Additionally, the company has an ownership interest in two floating storage / offloading service vessels.

International Seaways primarily serves independent and state-owned oil companies, oil traders and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways in 2016.

The company was incorporated in 1999 and is headquartered in New York, New York. The current CEO is Lois Zabrocky.