International SeawaysDelek US

International Seaways vs Delek US

This page compares business models, financial performance, and market context for International Seaways, Inc. and Delek US Holdings, Inc. It presents neutral, accessible information to help readers un...

Which Baskets Do They Appear In?

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Published: August 11, 2025

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Americas-India Oil Axis

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North Sea Oil Expansion

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Published: July 2, 2025

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Investment Analysis

Pros

  • International Seaways has demonstrated strong profitability with a trailing net profit margin above 29% and a high return on equity recently exceeding 28%.
  • The company maintains a robust balance sheet with a low debt-to-equity ratio and strong liquidity, as shown by current and quick ratios above 2.5.
  • International Seaways offers a high dividend yield above 6%, supported by solid cash flows and a history of shareholder returns.

Considerations

  • Earnings and day rates have declined year-on-year due to volatile tanker markets and lower charter rates, impacting revenue stability.
  • The business is highly exposed to oil price fluctuations and global trade dynamics, which can rapidly affect tanker demand and profitability.
  • Long-term growth prospects are limited by industry headwinds, including global decarbonisation efforts and potential regulatory pressures on oil transport.

Pros

  • Delek US operates across multiple segments of the energy value chain, providing diversification and resilience against sector-specific downturns.
  • The company has a strong presence in key US refining and logistics hubs, supporting stable throughput and operational efficiency.
  • Delek US has demonstrated a history of disciplined capital allocation and cost management, contributing to improved margins in recent periods.

Considerations

  • Delek US has faced significant volatility in earnings, with periods of negative return on equity and substantial losses in recent years.
  • The company is exposed to commodity price swings and regulatory risks, particularly in refining and renewable fuel markets.
  • Delek US carries a relatively high debt burden, which increases financial risk during periods of weak cash flow or rising interest rates.

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