SFL Corp Ltd.

Maritime leasing company with a loss year, high leverage and acute near-term refinancing needs.

Strengths

• Healthy operating cash margin (36%, 57th pct) from long-term charter contracts
• Adequate cash balance ($150.8M, 64th pct)

Risks

• Negative ROE (-2.8%), ROA (-0.7%) and net margin (-3.6%); income down 120%
• Very weak liquidity (current 0.36, 2nd pct) and high leverage (D/E 2.04, 86th pct) with substantial debt maturing within a year

Notable findings

• High leverageHigh leverage (debt/equity 2.04)
• Net lossNet loss (net margin -3.6%)
• Weak liquidityCurrent ratio 0.36 (<1)