SFL Corp Ltd. (SFL) stock price is $12.01, up 0.21% on the day, as of Oct 20, 2026. It has a market cap of $1.58Bn and a P/E ratio of 24.39, and is classified in the Marine Shipping industry (Industrials sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap1.58 Bn
P/E24.39
Div. Yield0.00
Total Debt (Qtr)2.38 Bn
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About
SFL Corporation Ltd. is an international ship owning and chartering company incorporated under the laws of Bermuda. The company primarily owns and operates vessels and offshore related assets and is also active in the charter purchase and sale of those assets. As of December 31 2025 its fleet consisted of seventeen tankers two dry bulk carriers twenty one container vessels seven car carriers and two drilling rigs together with five dual fuel sixteen thousand eight hundred…
SFL Corporation Ltd. is an international ship owning and chartering company incorporated under the laws of Bermuda. The company primarily owns and operates vessels and offshore related assets and is also active in the charter purchase and sale of those assets. As of December 31 2025 its fleet consisted of seventeen tankers two dry bulk carriers twenty one container vessels seven car carriers and two drilling rigs together with five dual fuel sixteen thousand eight hundred TEU container vessels under construction expected to be delivered in 2028. SFL Corporation Ltd. also holds an equity interest in an associated company that owns four leased in container vessels. The firm’s main objective is to grow through accretive acquisitions across a range of marine and offshore asset classes while generating stable and increasing cash flows by chartering assets chiefly under medium to long term bareboat or time charters. In pursuit of this goal the company regularly evaluates second hand vessels newbuilding projects and strategic partnerships that can enhance its earnings profile and expand its geographic reach.
Revenue is generated principally from charter hire earned when the company’s vessels and rigs are employed under bareboat or time charter agreements with third parties. Additional income arises from the purchase and sale of vessels and rigs which can produce gains or losses on disposal. The company also earns returns from financial investments such as loans secured by maritime assets and equity interests in associated entities. Charter contracts typically provide fixed daily rates over periods of several years which helps to smooth earnings and reduce exposure to spot market volatility. In some cases the company enters into profit sharing arrangements that allow it to participate in upside when market conditions are strong while still securing a base level of income. The customer base includes major shipping lines oil majors commodity traders and automobile manufacturers who seek reliable access to shipping capacity through long term charter arrangements.
The company operates through the following segments.
The Tankers segment comprises crude oil tankers product tankers and chemical tankers that are owned operated and chartered to transport crude oil refined petroleum products and various chemicals under medium to long term bareboat or time charter arrangements. The segment benefits from stable demand for energy transportation and the ability to secure charters with major oil companies and traders.
The Container vessels segment includes feeder and larger containerships that are employed primarily under long term time charters to liner companies providing scheduled cargo services on global trade routes. These vessels often operate on dedicated loops that serve specific trade lanes such as Asia Europe or transpacific routes.
The Car carriers segment consists of vehicle carriers including dual fuel LNG powered vessels that are chartered to automobile manufacturers and logistics firms for the transport of finished cars and trucks. The segment has recently added new dual fuel carriers that meet stricter environmental standards and attract long term commitments from leading automotive groups.
The Dry bulk carriers segment owns and operates vessels that transport bulk commodities such as iron ore coal grain and other dry goods under charter agreements with miners traders and producers. The segment’s performance is linked to global commodity cycles and the company seeks to lock in earnings through multi year charters with reliable counterparties.
The Offshore drilling rigs segment includes a jack up rig and an ultra deepwater drilling rig that are sub chartered to oil and gas exploration companies for drilling campaigns and well development activities. These rigs are capable of operating in harsh environments and are often contracted for programs that span several drilling seasons.
SFL Corporation Ltd. holds a diversified position within the global maritime shipping industry by maintaining a mixed fleet that spans tankers container vessels car carriers dry bulk carriers and offshore drilling rigs. This diversification reduces reliance on any single market segment and allows the company to capture opportunities across different cycles. Competitive advantages stem from its focus on medium to long term charters which provide predictable cash flow its strong relationships with major charterers and its ability to access capital for newbuildings and acquisitions. The company faces competition from other international shipowners such as Frontline Danaos Golden Ocean and various independent operators that also seek long term charter business. However SFL Corporation Ltd. differentiates itself through its broad asset base and its track record of delivering vessels under long term agreements with reputable counterparties. In addition the firm’s prudent financial management and disciplined investment approach have helped it maintain a solid balance sheet even during periods of market stress.
The company serves a varied customer base that includes major container lines such as Maersk MSC Hapag Lloyd and K Line oil majors like ConocoPhillips and Phillips 66 automobile manufacturers including Volkswagen commodity traders such as Trafigura Vitol and Stolt Tankers and other shipping and logistics providers. These customers typically enter into charter agreements that last several years and provide the company with a steady stream of hire income. By working with a broad range of counterparties SFL Corporation Ltd. reduces its reliance on any single customer and enhances the resilience of its revenue profile.
Sectors:Industrials·EnergySector rationaleThe company's primary revenue is generated from owning and chartering a diversified fleet of tankers, container vessels, car carriers, and dry bulk carriers, which falls under Marine Shipping within the Industrials sector. A secondary sector of Energy is justified because the company also owns and operates offshore drilling rigs sub-chartered to oil and gas exploration companies, representing a distinct business line serving the fuel production industry.Industries:Marine ShippingMarine ShippingPrimarySFL Corporation Ltd. primarily owns and operates a diverse fleet of tankers, container vessels, car carriers, and dry bulk carriers, generating revenue from charter hire. Its customers include major shipping lines like Maersk and MSC, and commodity traders like Trafigura and Vitol.Offshore DrillingOffshore DrillingSecondaryThe company operates an Offshore drilling rigs segment, which includes jack-up and ultra-deepwater rigs sub-chartered to oil and gas exploration companies for drilling campaigns.Classified using BQ-MICSCIK: 0001289877
Bull & bear
Investment Thesis
▲ Bull case
SFL's diversified fleet strategy is generating exceptional cash flow visibility through its strong backlog of $3.7 billion, over two-thirds of which is with investment grade counterparties, providing structural resilience against market volatility and supporting continued dividend growth as evidenced by the recent 10% increase to $0.22 per share. The company's long-term charter model, particularly with assets like the Linus drilling rig secured through May 2029 with ConocoPhillips, creates predictable revenue streams that are underappreciated by the market focused on near-term spot tanker fluctuations. This contractual backbone allows SFL to capitalize on opportunistic liquidity events, such as the recent $75 million tap issuance of its 2030 senior unsecured bonds at 103.5% of par implying a 6.8% yield, demonstrating robust credit market confidence and extending financial flexibility for accretive investments without dilutive equity offerings. The Hercules rig contract for Canada starting in 2027 represents a significant but underdiscussed catalyst, as it is the only rig in the market with a valid Canadian safety case and requires relatively low tactical upgrades compared to other potential contracts, positioning it to capture long-term demand for harsh environment deepwater drilling rigs toward the end of the decade with minimal near-term capital expenditure drag. Furthermore, the strong performance of the two Suezmax tankers in the spot market—generating nearly $54,000 per day on a time charter equivalent basis in Q1 versus a cash breakeven below $20,000 per day after debt service—highlights the company's ability to exploit temporary market dislocations, with 53% of Q2 vessel days already covered at ~$185,000 per day, suggesting the market is underestimating the sustainable earnings contribution from these assets even as they transition back to longer-term charters.
SFL's diversified fleet strategy is generating exceptional cash flow visibility through its strong backlog of $3.7 billion, over two-thirds of which is with investment grade counterparties, providing structural resilience against market volatility and supporting continued dividend growth as evidenced by the recent 10% increase to $0.22 per share. The company's long-term charter model, particularly with assets like the Linus drilling rig secured through May 2029 with ConocoPhillips, creates predictable revenue streams that are underappreciated by the market focused on near-term spot tanker fluctuations. This contractual backbone allows SFL to capitalize on opportunistic liquidity events, such as the recent $75 million tap issuance of its 2030 senior unsecured bonds at 103.5% of par implying a 6.8% yield, demonstrating robust credit market confidence and extending financial flexibility for accretive investments without dilutive equity offerings. The Hercules rig contract for Canada starting in 2027 represents a significant but underdiscussed catalyst, as it is the only rig in the market with a valid Canadian safety case and requires relatively low tactical upgrades compared to other potential contracts, positioning it to capture long-term demand for harsh environment deepwater drilling rigs toward the end of the decade with minimal near-term capital expenditure drag. Furthermore, the strong performance of the two Suezmax tankers in the spot market—generating nearly $54,000 per day on a time charter equivalent basis in Q1 versus a cash breakeven below $20,000 per day after debt service—highlights the company's ability to exploit temporary market dislocations, with 53% of Q2 vessel days already covered at ~$185,000 per day, suggesting the market is underestimating the sustainable earnings contribution from these assets even as they transition back to longer-term charters.
SFL faces material risks from the structural decline in long-term charter demand for medium-sized bulkers like its two remaining Kamsarmax vessels, where management explicitly acknowledged that finding charters beyond one year is difficult and not attractive for their business model, creating a high likelihood of continued spot market exposure or forced asset sales at potentially unfavorable valuations as the dry bulk market's improving day rates may be temporary and insufficient to justify long-term commitments from charterers. The company's heavy reliance on tanker spot market opportunities, particularly the two Suezmax vessels currently generating exceptional returns, is unsustainable given the admission that reported charter hire is accounted for on a low-to-discharge basis under US GAAP, meaning current book revenues overstate actual quarterly performance due to expected ballast days, and the strong Q2 coverage at ~$185,000 per day for only 53% of days leaves significant exposure to mean-reversion in tanker rates once Middle East-driven disruptions normalize. Additionally, SFL's balance sheet, while showing ample liquidity with $128 million in cash and $160 million undrawn, carries significant upcoming maturities including the $150 million senior unsecured bonds due in May 2026 that will be redeemed using available liquidity, reducing financial flexibility and increasing reliance on continued strong operating cash flow to fund the $850 million in remaining capital expenditures for five contracted container newbuildings, a burden that could strain deleveraging progress if charter market weakness persists beyond the current spot tanker boom.
SFL faces material risks from the structural decline in long-term charter demand for medium-sized bulkers like its two remaining Kamsarmax vessels, where management explicitly acknowledged that finding charters beyond one year is difficult and not attractive for their business model, creating a high likelihood of continued spot market exposure or forced asset sales at potentially unfavorable valuations as the dry bulk market's improving day rates may be temporary and insufficient to justify long-term commitments from charterers. The company's heavy reliance on tanker spot market opportunities, particularly the two Suezmax vessels currently generating exceptional returns, is unsustainable given the admission that reported charter hire is accounted for on a low-to-discharge basis under US GAAP, meaning current book revenues overstate actual quarterly performance due to expected ballast days, and the strong Q2 coverage at ~$185,000 per day for only 53% of days leaves significant exposure to mean-reversion in tanker rates once Middle East-driven disruptions normalize. Additionally, SFL's balance sheet, while showing ample liquidity with $128 million in cash and $160 million undrawn, carries significant upcoming maturities including the $150 million senior unsecured bonds due in May 2026 that will be redeemed using available liquidity, reducing financial flexibility and increasing reliance on continued strong operating cash flow to fund the $850 million in remaining capital expenditures for five contracted container newbuildings, a burden that could strain deleveraging progress if charter market weakness persists beyond the current spot tanker boom.