MeritValue

SFL Corp Ltd.

SFLdata completeness 88%18 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'interestExpense'

The thesis, from the filings

SFL Corp Ltd. earns about 2% on invested capital, and has bought back 5% of its shares over 5 years. The applicable estimate puts fair value near $10.17 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$513.4M1$670.4M2$752.3M3$904.4M3$733M3
Net income$164.3M4$202.8M5$83.9M6$130.7M6−$26.4M6
Operating cash flow$293.6M7$355.1M8$343.1M9$369.9M9$267.1M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$3.79B10$4.41B11$4.31B12$5.7B13$5.15B13
Cash & equivalents$145.6M14$188.4M15$165.5M16$134.6M16$150.8M16
Diluted shares139.4M137.4M126.6M130.0M133.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$72.21
your share of equity
Profit it earned you last year
−$1.99
Free cash flow it threw off
—
Debt you’d be carrying
$387.08

10 shares is a claim on $72.21 of net worth that earned you −$1.99 last year, against $387.08 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
2% avg · 5y
FY21 4%FY22 4%FY23 2%FY24 2%FY25 -0%

It earned an average 2% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−5% shares · 5y

Share count is down 5% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 36% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$10.17
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$130.7M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001289877-24-000009 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001289877-25-000013 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001289877-26-000008 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001289877-24-000009 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001289877-25-000013 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001289877-26-000008 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001289877-24-000009 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001289877-25-000013 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001289877-26-000008 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001289877-23-000010 (LongTermDebtNoncurrent)
  11. 20-F · period ending 2022-12-31 · accession 0001289877-24-000009 (LongTermDebtNoncurrent)
  12. 20-F · period ending 2023-12-31 · accession 0001289877-25-000013 (LongTermDebtNoncurrent)
  13. 20-F · period ending 2024-12-31 · accession 0001289877-26-000008 (LongTermDebtNoncurrent)
  14. 20-F · period ending 2021-12-31 · accession 0001289877-24-000009 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2022-12-31 · accession 0001289877-25-000013 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2023-12-31 · accession 0001289877-26-000008 (CashAndCashEquivalentsAtCarryingValue)