| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 74.43 | 25 |
| Intrinsic value (DCF) | 13.31 | -78 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
International Seaways, Inc. (NYSE: INSW) is a leading player in the global maritime transportation of crude oil and petroleum products. Headquartered in New York, the company operates a diversified fleet of 83 vessels, including VLCCs, Suezmaxes, Aframaxes, and product tankers, serving independent and state-owned oil companies, traders, and government entities worldwide. With a strong presence in the international flag trade, INSW capitalizes on volatile oil markets and geopolitical shifts to optimize fleet utilization and charter rates. The company’s dual-segment focus—Crude Tankers and Product Carriers—provides resilience against sector-specific downturns. Backed by a disciplined capital allocation strategy, including consistent dividends and debt reduction, INSW is well-positioned in the energy midstream sector. Its modern fleet and strategic partnerships enhance its competitive edge in a capital-intensive industry where scale and operational efficiency are critical.
International Seaways presents a compelling opportunity for investors seeking exposure to the cyclical tanker market, with strong cash flow generation (operating cash flow of $547M in FY2023) and a shareholder-friendly capital return policy ($5.15/share dividend). The company benefits from favorable tanker market dynamics, including constrained vessel supply and rising long-haul demand due to geopolitical disruptions. However, risks include oil price volatility, regulatory changes (e.g., emissions standards), and fleet overcapacity if new orders surge. With a low beta (0.006), INSW offers relative stability but remains sensitive to freight rate fluctuations. The debt-to-equity ratio (~38%) is manageable, and the lack of recent capex suggests a focus on leveraging existing assets.
INSW’s competitive advantage stems from its diversified fleet mix and operational scale, allowing it to capture premiums across multiple vessel segments (VLCCs to LR1s). Unlike pure-play competitors, its dual crude/product focus mitigates segment-specific risks. The company’s modern fleet (average age ~10 years) ensures compliance with environmental regulations (e.g., IMO 2020), reducing retrofit costs. Strategic time-charter contracts provide revenue visibility, while spot market exposure maximizes upside during rate spikes. INSW’s cost leadership is evident in its net margin (~44% in FY2023), outperforming peers due to efficient voyage management and low G&A expenses. However, it lacks the vertical integration of majors like Euronav (which owns terminals) and faces pricing pressure from larger fleets like Frontline. Its niche as a mid-sized operator limits bargaining power with oil majors but offers agility in chartering decisions.