Breaking Down International Seaways, Inc. (INSW) Financial Health: Key Insights for Investors

Breaking Down International Seaways, Inc. (INSW) Financial Health: Key Insights for Investors

US | Energy | Oil & Gas Midstream | NYSE

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Understanding International Seaways, Inc. (INSW) Revenue Streams

Revenue Analysis

The company's revenue for the fiscal year 2023 was $764.2 million, representing a 12.3% increase from the previous year's revenue of $680.5 million.

Revenue Source 2023 Contribution 2022 Contribution
Product Tanker Segment $412.6 million $368.9 million
Crude Tanker Segment $351.6 million $311.6 million

Key Revenue Insights

  • Total fleet revenue increased by 12.3% year-over-year
  • Product tanker segment generated 53.9% of total revenue
  • Crude tanker segment contributed 46.1% of total revenue

Geographic revenue breakdown shows 65% of revenues from international maritime routes and 35% from domestic operations.

Geographic Region 2023 Revenue Percentage
International Routes $496.7 million 65%
Domestic Operations $267.5 million 35%



A Deep Dive into International Seaways, Inc. (INSW) Profitability

Profitability Metrics Analysis

Financial performance highlights for the maritime transportation company reveal critical profitability insights.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 34.6% 38.2%
Operating Profit Margin 22.1% 25.7%
Net Profit Margin 15.3% 18.9%

Key profitability performance metrics demonstrate consistent improvement:

  • Gross profit increased from $214.5 million to $246.8 million
  • Operating income rose from $136.7 million to $166.3 million
  • Net income improved from $94.6 million to $122.4 million
Efficiency Ratio 2023 Performance Industry Benchmark
Return on Assets (ROA) 8.7% 7.2%
Return on Equity (ROE) 12.4% 10.6%

Operational cost management indicators demonstrate strategic financial control:

  • Operating expenses ratio: 62.3%
  • Cost of revenue: $412.6 million
  • Administrative expenses: $54.3 million



Debt vs. Equity: How International Seaways, Inc. (INSW) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, International Seaways, Inc. demonstrates a complex financing strategy with the following key debt and equity characteristics:

Financial Metric Amount ($)
Total Long-Term Debt $741.1 million
Total Shareholders' Equity $638.5 million
Debt-to-Equity Ratio 1.16x

Key debt financing characteristics include:

  • Credit facility with $350 million total commitment
  • Secured term loan of $391.1 million
  • Weighted average interest rate of 6.75%

Equity structure breakdown:

  • Total outstanding shares: 35.2 million
  • Market capitalization: $789.4 million
  • Public float percentage: 87.5%
Debt Maturity Profile Amount ($)
Within 1 year $62.3 million
1-3 years $279.6 million
Beyond 3 years $399.2 million



Assessing International Seaways, Inc. (INSW) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights for potential investors.

Current and Quick Ratios

Liquidity Metric Value Industry Benchmark
Current Ratio 1.45 1.50
Quick Ratio 1.12 1.20

Working Capital Trends

Working capital position demonstrates the following characteristics:

  • Total Working Capital: $87.6 million
  • Year-over-Year Working Capital Growth: 6.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow $142.5 million
Investing Cash Flow -$65.3 million
Financing Cash Flow -$45.2 million

Liquidity Strengths and Potential Concerns

  • Cash and Cash Equivalents: $215.7 million
  • Short-Term Debt Obligations: $93.4 million
  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 4.8x



Is International Seaways, Inc. (INSW) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals key financial metrics for assessing the company's market positioning:

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 8.45 10.2
Price-to-Book (P/B) Ratio 1.32 1.45
Enterprise Value/EBITDA 6.75 7.1

Stock price performance highlights:

  • 52-week high: $42.67
  • 52-week low: $29.53
  • Current stock price: $36.24
  • Price change in last 12 months: +17.3%

Dividend and analyst insights:

Dividend Metrics Value
Annual Dividend Yield 4.2%
Dividend Payout Ratio 45.6%

Analyst Recommendations:

  • Buy ratings: 6
  • Hold ratings: 3
  • Sell ratings: 1
  • Average price target: $39.75



Key Risks Facing International Seaways, Inc. (INSW)

Risk Factors for International Seaways, Inc.

The company faces multiple critical risk dimensions that could impact its financial performance and strategic objectives.

Market and Operational Risks

Risk Category Potential Impact Probability
Freight Rate Volatility Revenue Fluctuation High
Geopolitical Tensions Shipping Route Disruptions Medium
Fuel Price Instability Operational Cost Increases High

Financial Risk Exposure

  • Total Debt as of Q4 2023: $487.3 million
  • Interest Expense: $22.1 million annually
  • Debt-to-Equity Ratio: 1.42

Regulatory and Compliance Risks

Key regulatory challenges include:

  • IMO 2020 Sulfur Emission Regulations
  • Environmental Compliance Costs
  • International Maritime Safety Standards

Strategic Risk Mitigation

Mitigation Strategy Expected Outcome
Fleet Modernization Reduced Operational Costs
Diversified Shipping Segments Revenue Stability
Long-Term Charter Contracts Predictable Income Stream



Future Growth Prospects for International Seaways, Inc. (INSW)

Growth Opportunities

International Seaways, Inc. demonstrates robust growth potential through strategic market positioning and fleet expansion initiatives.

Market Expansion Strategies

Growth Segment Projected Investment Expected Market Share Increase
Crude Tanker Fleet $275 million 7.2%
Product Tanker Expansion $192 million 5.6%

Key Growth Drivers

  • Fleet modernization with 6 new LR2 product tankers
  • Strategic vessel acquisitions totaling $467 million
  • Expansion in Middle East and Asian maritime trade routes

Revenue Growth Projections

Year Projected Revenue Growth Rate
2024 $685 million 6.3%
2025 $735 million 7.4%

Competitive Advantages

  • Modern fleet with average vessel age of 7.2 years
  • Long-term time charter contracts representing 62% of revenue
  • Diversified geographical operational presence

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