What International Seaways Holders Bought Into Before A 164% Run

If you had looked at International Seaways in October 2025, you would have seen fierce disagreement over whether extended shipping routes and fleet renewal could offset decarbonization pressure and possible tanker oversupply. For International Seaways shareholders, the return over the past year was 163.8%, including dividends. If you were weighing a purchase on 2025-10-19, how much weight would you have put on volatile spot exposure versus the push to modernize the fleet?

A Narrative on Simply Wall St is one investor's written case for a company, with its growth, margin and multiple assumptions spelled out. Those assumptions imply an estimated Fair Value.

The easy part of this move is behind International Seaways. Zero in on 35 high quality undervalued stocks for companies trading below our estimates.

The Two Stories Investors Were Weighing On International Seaways

The shares cost US$46.11 at the start of the period, and anyone looking at International Seaways then had to choose between two sharply different stories.

The bullish narrative put Fair Value at US$54.08, which is 17% above the start price. It hinged on longer trade routes and a younger fleet that might benefit from stricter environmental rules and tighter vessel supply.

The bearish view set Fair Value at US$43.77, which is 5% below the start price. It stressed decarbonization as a potential drag on oil transport demand and warned that tanker oversupply and spot rate dependence could pressure margins and revenue stability.

What The Results Changed For International Seaways

Record Q1 and Q2 2026 results gave International Seaways bulls clear support. Revenue moved from US$195.6m in Q2 2025 to US$469.7m in Q2 2026, while net income excluding extra items went from US$61.6m to US$294.8m. Net margin rose from 31.5% to 62.8%. Insider selling and valuation concerns pushed in the other direction, so the evidence cut both ways.

The key assumption tested was whether extended routes and fleet renewal would show up in profitability. For any shipping stock, you would track net margin and vessel sales or upgrades in filings to see if that story is turning into cash, not just higher day rates.

What You Are Paying For In International Seaways After The Run

With International Seaways now at US$105 after a 163.8% gain over the past year, this Narrative’s Fair Value sits below the current price and treats the recent surge as richer than its own estimates.

A buyer today is effectively assuming current earnings power can hold up. The selected Narrative asks how dilution risk and a potential reset in tanker rates might challenge that assumption.

"The main factor that has to go right is that International Seaways converts its currently high cash generation, low leverage and large liquidity into durable earnings power, while avoiding erosion of per share value through actions such as sizable equity issuance."

That disagreement has a full argument behind it. → Uncover the lower Fair Value this Narrative argues for

Find Your Own Contrarian Opportunity

What if your next investment idea came before the headlines? Go straight to the companies whose prices and our estimates still disagree. Three places to start, with the names waiting behind the link.

• Company 1 - 41% below our estimate - helps clients address complex AI, utility reliability and chemical safety challenges.
• Company 2 - 45% below our estimate - turns a large pipeline of data center and modular projects into installation revenue.
• Company 3 - 33% below our estimate - delivers higher cost gold volumes that closely track reserve duration and political exposure.

Three companies from the same screener. Open the full list of 25 financially solid companies →

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