International Seaways, Inc. (NYSE:INSW) is a prominent player in the shipping industry, specializing in the transportation of crude oil and petroleum products. The company operates a diverse fleet of vessels, ensuring the efficient delivery of energy resources across the globe. In a competitive market, INSW's performance is often compared with peers like Scorpio Tankers Inc., Euronav N.V., Ardmore Shipping Corporation, Teekay Tankers Ltd., and Dorian LPG Ltd.
A key metric in evaluating INSW's financial health is the comparison between its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). INSW's ROIC stands at 8.85%, while its WACC is 5.07%. This results in a ROIC to WACC ratio of 1.75, indicating that the company is generating returns above its cost of capital, a positive indicator for investors.
When comparing INSW to its peers, Scorpio Tankers Inc. has a ROIC of 8.01% and a WACC of 6.13%, resulting in a ROIC to WACC ratio of 1.31. Euronav N.V. shows a higher ROIC of 18.03% against a WACC of 6.98%, achieving a ratio of 2.58. Ardmore Shipping Corporation's ROIC is 10.33% with a WACC of 5.38%, leading to a ratio of 1.92.
Teekay Tankers Ltd. emerges as the leader with a ROIC of 12.88% and a WACC of 4.77%, resulting in the highest ROIC to WACC ratio of 2.70 among the group. This suggests that Teekay Tankers is utilizing its capital more efficiently than its peers. Meanwhile, Dorian LPG Ltd. has a ROIC of 4.18% and a WACC of 6.25%, with a ratio of 0.67, indicating returns below its cost of capital.
