OB:SBLK

Stock Analysis Report

Executive Summary

Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide.

Rewards

Trading at 45.5% below its fair value

Earnings are forecast to grow 87.02% per year

Risk Analysis

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Star Bulk Carriers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SBLK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.3%

SBLK

-2.1%

NO Shipping

-0.8%

NO Market


1 Year Return

6.7%

SBLK

1.7%

NO Shipping

4.9%

NO Market

Return vs Industry: SBLK exceeded the Norwegian Shipping industry which returned 2.8% over the past year.

Return vs Market: SBLK exceeded the Norwegian Market which returned 4.5% over the past year.


Shareholder returns

SBLKIndustryMarket
7 Day-13.3%-2.1%-0.8%
30 Day-18.8%6.1%1.1%
90 Day-19.2%11.4%4.4%
1 Year7.2%6.7%5.3%1.7%10.5%4.9%
3 Yearn/a-8.3%-15.2%31.4%15.1%
5 Yearn/a8.6%-5.4%64.3%26.9%

Price Volatility Vs. Market

How volatile is Star Bulk Carriers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Star Bulk Carriers undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBLK (NOK96) is trading below our estimate of fair value (NOK176.23)

Significantly Below Fair Value: SBLK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SBLK is unprofitable, so we can't compare its PE Ratio to the Shipping industry average.

PE vs Market: SBLK is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SBLK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SBLK is good value based on its PB Ratio (0.6x) compared to the NO Shipping industry average (0.6x).


Next Steps

Future Growth

How is Star Bulk Carriers forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

87.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBLK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.7%).

Earnings vs Market: SBLK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SBLK's is expected to become profitable in the next 3 years.

Revenue vs Market: SBLK's revenue (6.2% per year) is forecast to grow faster than the Norwegian market (3.2% per year).

High Growth Revenue: SBLK's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBLK's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Star Bulk Carriers performed over the past 5 years?

36.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBLK is currently unprofitable.

Growing Profit Margin: SBLK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SBLK is unprofitable, but has reduced losses over the past 5 years at a rate of 36.4% per year.

Accelerating Growth: Unable to compare SBLK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SBLK is unprofitable, making it difficult to compare its past year earnings growth to the Shipping industry (-8.5%).


Return on Equity

High ROE: SBLK has a negative Return on Equity (-1.84%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Star Bulk Carriers's financial position?


Financial Position Analysis

Short Term Liabilities: SBLK's short term assets ($248.5M) do not cover its short term liabilities ($278.2M).

Long Term Liabilities: SBLK's short term assets ($248.5M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: SBLK's debt to equity ratio (78%) is considered high.

Reducing Debt: SBLK's debt to equity ratio has increased from 57.7% to 78% over the past 5 years.


Balance Sheet

Inventory Level: SBLK has a high level of physical assets or inventory.

Debt Coverage by Assets: SBLK's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if SBLK has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SBLK has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Star Bulk Carriers's current dividend yield, its reliability and sustainability?

2.17%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.4%markettop25%5.5%industryaverage3.0%forecastin3Years15.2%

Current dividend yield vs market & industry

Notable Dividend: SBLK's dividend (1.84%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (2.4%).

High Dividend: SBLK's dividend (1.84%) is low compared to the top 25% of dividend payers in the Norwegian market (5.71%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SBLK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SBLK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBLK's dividends in 3 years are forecast to be covered by earnings (61.4% payout ratio).


Next Steps

Management

What is the CEO of Star Bulk Carriers's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Petros Pappas (66yo)

5.5yrs

Tenure

US$9,890

Compensation

Mr. Petros A. Pappas is a Founder of Star Bulk Carriers Corp. and has been its Chief Executive Officer since July 2014. Mr. Pappas serves as Principal Executive Officer of Star Cosmo LLC, Star Alpha LLC, S ...


Management Age and Tenure

5.5yrs

Average Tenure

47yo

Average Age

Experienced Management: SBLK's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

63yo

Average Age

Experienced Board: SBLK's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: SBLK insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Sellkr614,24608 Jan 20
Nikolaos Karellis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max Pricekr102.37
Buykr1,48909 Dec 19
Mahesh Balakrishnan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,700
Max Pricekr0.32
Sellkr606,24115 Oct 19
Nikolaos Karellis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max Pricekr101.04
Buykr80,246,04714 Aug 19
Oaktree Capital Management, L.P.
EntityCompany
Shares1,020,656
Max Pricekr78.62
Buykr109,141,41804 Jun 19
Oaktree Capital Management, L.P.
EntityCompany
Shares1,629,344
Max Pricekr66.98
Buykr111,330,83301 Apr 19
Oaktree Capital Management, L.P.
EntityCompany
Shares1,622,446
Max Pricekr68.62
Buykr114,41312 Mar 19
Spyros Capralos
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares2,000
Max Pricekr57.21

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 32.9%.


Management Team

  • Petros Pappas (66yo)

    Founder

    • Tenure: 5.5yrs
    • Compensation: US$9.89k
  • Hamish Norton (60yo)

    President

    • Tenure: 5.5yrs
  • Zenon Kleopas (64yo)

    Executive Vice President of Technical Operations

    • Simos Spyrou (45yo)

      Co-Chief Financial Officer

      • Tenure: 8.3yrs
    • Christos Begleris (38yo)

      Co-Chief Financial Officer

      • Tenure: 5.5yrs
    • Nicos Rescos (47yo)

      Chief Operating Officer

      • Tenure: 5.5yrs
    • Herman Billung

      Senior Vice President

      • Tenure: 1.5yrs
    • Charis Plakantonaki (40yo)

      Chief Strategy Officer

      • Tenure: 2.8yrs
    • Georgia Mastagaki

      Co-General Counsel

      • Constantinos Simantiras

        Head of Market Research


        Board Members

        • Arne Blystad (64yo)

          Director

          • Tenure: 1.5yrs
        • Tom Søfteland (58yo)

          Independent Director

          • Compensation: US$37.50k
        • Petros Pappas (66yo)

          Founder

          • Tenure: 5.5yrs
          • Compensation: US$9.89k
        • Koert Erhardt (63yo)

          Independent Director

          • Compensation: US$35.67k
        • Spyros Capralos (64yo)

          Non-Executive Chairman

          • Tenure: 5.5yrs
          • Compensation: US$15.49k
        • Brian Laibow (41yo)

          Director

          • Mahesh Balakrishnan (36yo)

            Independent Director

            • Tenure: 4.9yrs
          • Nikolaos Karellis (68yo)

            Independent Director

            • Tenure: 3.7yrs
          • Raffaele Zagari (50yo)

            Director

            • Tenure: 1.4yrs
          • Dawna Men

            Director

            Company Information

            Star Bulk Carriers Corp.'s company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Star Bulk Carriers Corp.
            • Ticker: SBLK
            • Exchange: OB
            • Founded: 2006
            • Industry: Marine
            • Sector: Transportation
            • Market Cap: US$891.462m
            • Listing Market Cap: US$8.043b
            • Shares outstanding: 94.53m
            • Website: https://www.starbulk.com

            Number of Employees


            Location

            • Star Bulk Carriers Corp.
            • 40 Agiou Konstantinou Street
            • Maroussi
            • 15124
            • Greece

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            SBLKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2014
            4FAPDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014
            SBLKOB (Oslo Bors)YesCommon StockNONOKJul 2014
            SBLKOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBNOKJul 2014

            Biography

            Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport a range of major bulks, including iron ores, coal, and grains, as well as minor bulks, such as bauxite, fertilizers, and steel products. As of April 10, 2019, the company had a fleet of 109 vessels with an aggregate capacity of approximately 12.45 million deadweight ton, including 17 Newcastlemax, 19 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax, and 10 Supramax vessels. It also provides vessel management services to dry bulk vessels of various sizes. The company was incorporated in 2006 and is based in Maroussi, Greece. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/24 23:38
            End of Day Share Price2020/01/24 00:00
            Earnings2019/09/30
            Annual Earnings2018/12/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.