SFL
SFL Corporation Ltd. (SFL) Management Analysis (2026)
Overall Score
Capital Allocation
Management is returning capital via a 6.7% dividend yield, but the payout ratio is elevated at 3.66x earnings.
Leverage remains meaningful with net debt to EBITDA at 5.31x, limiting flexibility despite solid free cash flow generation.
Free cash flow yield is 11.6% and price to free cash flow is 8.64x, supporting ongoing capital returns.
Execution Operating Discipline
Operating margins remain healthy with EBIT margin at 29.9% and EBITDA margin at 63.1%.
Return on invested capital is 4.66%, indicating only modest efficiency in converting capital into returns.
Working capital remains negative at -$549.0M, but the cash conversion cycle is short at 4.4 days.
Balance Sheet Stewardship
Liquidity is tight with a current ratio of 0.32 and cash ratio of 0.16.
Debt remains elevated with debt to assets at 70.4% and debt to equity at 2.59x.
Interest coverage is only 1.32x, leaving limited cushion if operating conditions weaken.
Sources
- Company filings (10-K, 10-Q, investor presentations)
- Financial and market data providers
- Public news and industry information
🔒 Go Beyond This Framework
This is one of 10 institutional-grade frameworks Invetso runs on SFL Corporation Ltd.. Unlock the complete analysis — SWOT, Economic Moat, Porter’s Five Forces, Management, PESTLE and the Invetso Quality Score.