Stolt-Nielsen appears significantly undervalued, trading at low EBITDA and EPS multiples despite strong EBITDA guidance and positive free cash flow history. Recent debt refinancing at favorable rates and substantial share repurchases signal management confidence and potential for further equity investor interest. Ongoing capital expenditures are expected to boost capacity, revenue, and book value, supporting long-term growth and higher stock valuations.
Stolt-Nielsen's robust earnings profile and diverse divisions, including tanker shipping and terminals, present a renewed investment opportunity despite recent share price declines. The company reported a strong FY 2024 with a net profit of $395M and an EPS of $7.38, driven by stable SG&A expenses and reduced finance costs. Stolt-Nielsen generated substantial free cash flow of $362M, even after significant capex and new vessel deposits, indicating strong financial health.
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Stolt-Nielsen trades in Norway with SNI ticker symbol, focusing on shipping, container sector, terminalling, and fish farming. The company reported strong financial performance in the first half of the year, with Q2 EPS of $1.87 and total EPS in first half of year of $3.81. Stolt-Nielsen's diverse divisions, including terminaling and seafood, are undervalued, with potential for share price appreciation and dividend growth.