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1. Company Snapshot

1.a. Company Description

Stolt-Nielsen Limited provides transportation, storage, and distribution solutions for bulk liquid chemicals, edible oils, acids, petroleum products, and other specialty liquids worldwide.It operates through five segments: Tankers, Terminals, Tank Containers, Stolt Sea Farm, and Stolt-Nielsen Gas.The company also produces, processes, and markets seafood, including turbot, sturgeon, and sole; and transports, stores, and distributes chemicals, clean petroleum products, liquefied petroleum gases, vegetable oils, biofuels, and oleochemicals.


It is also involved in the distribution of bitumen.In addition, it owns and operates liquid natural gas carriers.The company was founded in 1959 and is based in London, the United Kingdom.


Stolt-Nielsen Limited is a subsidiary of Fiducia Ltd.

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1.b. Last Insights on SNI

The recent 3-month performance of Stolt-Nielsen Limited was impacted by a dip in operating revenue, despite showcasing resilience with strong EBITDA and strategic investments. The company's tanker performance was impacted by market uncertainty, while its non-tanker portfolio continued to perform well. Additionally, Stolt-Nielsen Limited announced its intention to relaunch a share buy-back programme, which aims to purchase up to $30 million worth of the company's common shares. The company has also completed the compulsory acquisition of Avenir LNG Limited, further expanding its portfolio.

1.c. Company Highlights

2. Stolt-Nielsen's Q3 2025 Earnings: A Resilient Performance Amidst Challenges

Stolt-Nielsen's financial performance in Q3 2025 reflected a mixed bag, with operating revenue declining by nearly 5% or $33 million, driven by weaker freight rates and a decline in Stolt Tankers' performance. EBITDA before fair value adjustment was $192 million, down $23.5 million from last year. The company's EPS came in at $11.58, slightly below analyst estimates of $11.73. Despite the decline, the company's EBITDA remained robust, with a last 12 months EBITDA above $800 million for the sixth quarter in a row.

Publication Date: Oct -28

📋 Highlights
  • Resilient EBITDA Performance:: Achieved $190M+ quarterly EBITDA, with 12-month EBITDA exceeding $800M for the sixth consecutive quarter.
  • Diversified Revenue Streams:: 45% of EBITDA generated outside Stolt Tankers, offsetting its 27% year-over-year decline in EBITDA.
  • Strong Liquidity and Conservative Debt:: $466M liquidity, debt-to-tangible net worth of 1.01 (well below 2.25 covenant limit), and $93M debt repayment in Q3.
  • Capital Expenditure Focus:: $75M spent in Q3, with $200M remaining for 2025, targeting $500M in total investments to drive 2026 growth.
  • Market Outlook and Guidance:: Full-year EBITDA guidance of $750M–$790M, with optimism on stabilizing MR/VL markets and potential 3% net growth in 2026.

Segment Performance

Stolt Tankers saw a significant decline in operating revenue of 13%, predominantly due to a 90% decline in freight rates. However, Stolthaven Terminals delivered a stable performance, with utilization trending upwards at 92%. STC saw revenue and EBITDA slightly down, as the macro environment dampened market demand and transportation rates. The company's diversified portfolio helped mitigate the impact of softer shipping markets, with 45% of its EBITDA achieved outside of Stolt Tankers.

Guidance and Outlook

The company refined its 2025 EBITDA guidance to a range of $750 million to $790 million, based on current knowledge and assuming no substantial geopolitical changes. Looking ahead to 2026, the company expects modest net growth of around 3%, with the newbuild order book remaining stable at 18.5% of the global fleet. Analysts estimate revenue growth at 3.5% for next year, indicating a relatively stable outlook.

Valuation and Dividend Yield

With a P/E Ratio of 4.19 and an EV/EBITDA of 4.56, the company's valuation appears reasonable. The Dividend Yield stands at 7.74%, indicating an attractive return for income investors. The company's strong balance sheet, with significant flexibility, and a robust liquidity position of $466 million, support its ability to invest in growth initiatives while maintaining a healthy dividend payout.

Capital Allocation and Growth Initiatives

The company is focused on executing its liquid logistics strategy, with targeted investments of $500 million in 2025. CapEx for 2025 has increased, particularly for STC, with projects focused on expanding tank size, number of tanks, and depot capacity. The benefits of these investments are expected to be seen in 2026, positioning the business for long-term growth. With a Net Debt / EBITDA ratio of 2.67, the company's leverage remains manageable, and its ROIC stands at 8.69%, indicating a reasonable return on invested capital.

3. NewsRoom

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Stolt-Nielsen Limited Executive Management Update

Nov -07

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Stolt-Nielsen Limited Board Declares Interim Dividend of $1.00 per Common Share

Nov -06

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Stolt-Nielsen Limited Announces Completion of the Acquisition of Suttons International Holdings Limited

Nov -05

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Stolt-Nielsen (OB:SNI): Assessing Valuation After Q3 Earnings Decline and Share Buyback Completion

Oct -11

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Stolt-Nielsen Limited: Completes Issuance of Bonds

Oct -08

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Stolt-Nielsen Limited: Fixed Income Investor Meetings

Oct -06

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Stolt-Nielsen Limited Reports Unaudited Results For the Third Quarter and Nine Months of 2025

Oct -02

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Stolt-Nielsen Limited to Host a Video Conference to Present the Results for the Third Quarter and First Nine Months of 2025

Sep -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.22%)

6. Segments

Tankers

Expected Growth: 2%

Stolt-Nielsen's tanker segment growth is driven by increasing global seaborne trade, rising demand for chemical transportation, and a growing need for eco-friendly vessels. The company's strategic acquisitions, modern fleet, and operational efficiencies also contribute to its growth. Additionally, the recovery of the global economy and trade volumes support the segment's expansion.

Tank Containers

Expected Growth: 3%

Stolt-Nielsen's tank container growth is driven by increasing demand for specialty chemicals, growth in global trade, and a shift towards intermodal transportation. Additionally, the company's strategic expansion into new markets, investments in digitalization, and focus on operational efficiency have contributed to its 3% growth.

Terminals

Expected Growth: 1%

Stolt-Nielsen's terminals segment growth is driven by increasing demand for chemical storage and transportation, strategic acquisitions, and expansion into emerging markets. Additionally, the company's focus on operational efficiency, cost savings, and investments in digitalization and sustainability initiatives contribute to its growth momentum.

Stolt Sea Farm

Expected Growth: 4%

Stolt Sea Farm's 4% growth is driven by increasing demand for sustainable seafood, expansion into new markets, and improved operational efficiencies. The segment benefits from Stolt-Nielsen's integrated logistics and transportation capabilities, enabling cost-effective and timely delivery of live fish and seafood products to customers.

Corporate and Other

Expected Growth: 1%

Stolt-Nielsen's Corporate and Other segment growth is driven by increased demand for its terminal services, strategic acquisitions, and cost savings initiatives. The company's focus on operational efficiency, investments in digitalization, and expansion into new markets also contribute to its growth. Additionally, the segment benefits from the company's strong balance sheet and ability to generate cash flow.

7. Detailed Products

Tank Containers

Stolt-Nielsen's tank container business provides a safe and efficient way to transport bulk liquids, including chemicals, foodstuffs, and other hazardous materials.

Parcel Tankers

Stolt-Nielsen's parcel tanker business provides a flexible and reliable way to transport multiple bulk liquid cargoes in a single voyage.

Terminals

Stolt-Nielsen's terminal business provides storage and handling services for bulk liquids, including chemicals, petroleum products, and liquefied gases.

Ship Owning and Operation

Stolt-Nielsen's ship owning and operation business provides a fleet of specialized vessels for the transportation of bulk liquids.

Logistics and Distribution

Stolt-Nielsen's logistics and distribution business provides customized logistics solutions for the transportation and storage of bulk liquids.

8. Stolt-Nielsen Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Stolt-Nielsen Limited operates in the shipping and logistics industry, where substitutes are limited. However, the company faces some threat from alternative transportation methods, such as air freight and rail transport.

Bargaining Power Of Customers

Stolt-Nielsen Limited's customers are primarily large corporations and governments, which have limited bargaining power due to their reliance on the company's specialized services.

Bargaining Power Of Suppliers

Stolt-Nielsen Limited's suppliers are primarily shipbuilders and equipment providers. While the company has some bargaining power due to its large scale of operations, suppliers still have some negotiating power due to the specialized nature of their products.

Threat Of New Entrants

The shipping and logistics industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants to Stolt-Nielsen Limited's market.

Intensity Of Rivalry

The shipping and logistics industry is highly competitive, with many established players competing for market share. Stolt-Nielsen Limited faces intense rivalry from companies such as Maersk, CMA CGM, and Evergreen Marine.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.12%
Debt Cost 3.95%
Equity Weight 47.88%
Equity Cost 3.87%
WACC 3.91%
Leverage 108.85%

11. Quality Control: Stolt-Nielsen Limited passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 9.3

Quality: 6.9

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Momentum: 6.0

Volatility: 5.7

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BW LPG

A-Score: 7.3/10

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Yield: 10.0

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A-Score: 6.8/10

Value: 8.5

Growth: 7.7

Quality: 6.2

Yield: 9.4

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Stolt-Nielsen

A-Score: 6.6/10

Value: 8.9

Growth: 6.8

Quality: 5.2

Yield: 10.0

Momentum: 5.0

Volatility: 3.7

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A-Score: 5.8/10

Value: 9.2

Growth: 8.2

Quality: 7.9

Yield: 6.2

Momentum: 1.0

Volatility: 2.3

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Star Bulk Carriers

A-Score: 5.5/10

Value: 6.2

Growth: 5.2

Quality: 4.9

Yield: 8.8

Momentum: 3.0

Volatility: 4.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

335.0$

Current Price

335$

Potential

-0.00%

Expected Cash-Flows