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A Fresh Look at International Seaways (INSW) Valuation After New Credit Agreements for Tanker Fleet Expansion
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International Seaways (INSW) has announced new credit agreements to support the construction of six LR1 tanker newbuildings in Korea. The deal includes a $239.7 million term loan and a $91.9 million revolving facility, aimed at strengthening the company’s core fleet and supporting its long-term strategy. For shareholders and prospective investors, this development represents a deliberate initiative by management to position the company for potential future growth instead of remaining static. This investment follows a period of steady capital returns for International Seaways. Although returns over the past year have been slightly negative, the stock price is up nearly 25% year-to-date and has risen more than 22% over the past three months. Looking at a longer timeframe, the company has delivered over 120% in total returns over three years and achieved more than a threefold increase over five years. This record highlights its responsiveness to industry cycles. With this recent move, the company appears to be focusing once again on positive momentum. After several years of significant long-term gains and a recent surge fueled by new capital, some may question whether shares are still undervalued with room for further growth or if the market has already accounted for this new phase in the company’s development.

Most Popular Narrative: 15.5% Undervalued

According to community narrative, International Seaways is viewed as undervalued based on a blend of steady earnings growth, expanding margins, and supportive industry shifts expected to drive long-term value.

The company's strategy of renewing and modernizing its fleet, including the acquisition of newbuild eco-vessels and selling older tonnage, positions it to benefit from stricter environmental regulations. This approach may reduce operating costs and support sustained or improved net margins.

How is this narrative supporting such a bullish fair value? It comes down to significant assumptions about future earnings growth, stronger profitability, and where the multiple may settle in a few years. Interested in which profit drivers and market forecasts are fueling this optimistic case? Explore further and discover the factors behind this attention-grabbing valuation thesis.

Result: Fair Value of $53.5 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory shifts and declining global oil demand could undermine these bullish forecasts. This may create new challenges for International Seaways' growth trajectory.

Find out about the key risks to this International Seaways narrative.

Another View: Discounted Cash Flow Signals Deeper Value

While the analyst consensus highlights potential upside, our DCF model takes a different approach and suggests International Seaways may actually be even more undervalued than many expect. Could the market be missing something significant in this case?

Look into how the SWS DCF model arrives at its fair value.

INSW Discounted Cash Flow as at Aug 2025
INSW Discounted Cash Flow as at Aug 2025

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out International Seaways for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own International Seaways Narrative

If you have a different perspective or want to explore the numbers firsthand, you can build your own company thesis in just a few minutes. Do it your way

A great starting point for your International Seaways research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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