SBLK

Star Bulk CarriersNasdaqGS:SBLK Stock Report

Market Cap

US$2.1b

7D

-14.3%

1Y

210.6%

Updated

22 Sep, 2021

Data

Company Financials +
SBLK fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends4/6

SBLK Overview

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

Star Bulk Carriers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Star Bulk Carriers
Historical stock prices
Current Share PriceUS$20.25
52 Week HighUS$6.12
52 Week LowUS$26.00
Beta1.18
1 Month Change-0.29%
3 Month Change-10.71%
1 Year Change210.58%
3 Year Change54.58%
5 Year Change337.37%
Change since IPO-66.14%

Recent News & Updates

Aug 15

Star Bulk Carriers Is Printing Money

Star Bulk owns one of the largest and most diverse dry bulk fleets; 128 vessels ranging from Supramaxes to Newcastlemaxes. Under most scenarios, annual operating cash flow is poised to surpass $700 million and might even reach $1 billion if the strong market continues over the next few quarters. Generating these levels of cash is very attractive relative to today's market cap of $2 billion and total debt of $1.6 billion. The notion of being debt free in the coming years is not that far fetched. Q2 2021 results were outstanding (~ $140 million in operating cash flow) and Q3 is expected to be even better. The Baltic Index is at the highest level in more than 11 years, the newbuilding orderbook remains low at ~6.0% of the fleet (close to record low levels), and new ordering has been subdued despite a strong market.

Jul 26

Star Bulk Carriers: Get Ready For A Rebound

SBLK's rally has quieted down over the past month, with the stock down >18%. The Baltic Dry Index is getting back to its highs again (+28.95% since June 9), which in theory should drive dry bulk carriers' revenues. The recent ATM should be used to lower SBLK's leverage, which is good news. Commodity prices (fuel) and geopolitics (China-Australia tensions) are set to drive SBLK's and the whole sector's performance shortly. I'm bullish on SBLK and expect the quotes to recover by at least 20% in the medium term.

Jun 16

Star Bulk soars to six-year high as Jefferies sees 'ongoing market recovery'

vkyryl/iStock via Getty Images Star Bulk Carriers (SBLK) closed +9.7% today to its highest since January 2015, as Jefferies reiterated its Buy rating and raised its price target to $28 from $25, "convinced of an ongoing dry bulk shipping market recovery." Jefferies analyst Randy Giveans cited an improving global economy, increased demand for seaborne dry bulk commodities, and "the best supply-side fundamentals seen in decades." Star Bulk recently paid a $0.30/share dividend for Q1, which it will ramp up sequentially

Shareholder Returns

SBLKUS ShippingUS Market
7D-14.3%-6.7%-1.8%
1Y210.6%124.6%31.5%

Return vs Industry: SBLK exceeded the US Shipping industry which returned 122.2% over the past year.

Return vs Market: SBLK exceeded the US Market which returned 33% over the past year.

Price Volatility

Is SBLK's price volatile compared to industry and market?
SBLK volatility
SBLK Beta1.18
Industry Beta1.36
Market Beta1

Stable Share Price: SBLK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SBLK's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006180Petros Pappashttps://www.starbulk.com

Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. The company’s 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 March 16, 2021, it had a fleet of 128 vessels with an aggregate capacity of approximately 14.1 million deadweight tons, including 17 Newcastlemax, 22 Capesize, 2 Mini Capesize, 7 Post Panamax, 41 Kamsarmax, 2 Panamax, 20 Ultramax, and 17 Supramax vessels.

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 ($20.25) is trading below our estimate of fair value ($56.31)

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


Price To Earnings Ratio

PE vs Industry: SBLK is good value based on its PE Ratio (9.8x) compared to the US Shipping industry average (9.9x).

PE vs Market: SBLK is good value based on its PE Ratio (9.8x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: SBLK is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SBLK is overvalued based on its PB Ratio (1.2x) compared to the US Shipping industry average (1x).


Future Growth

How is Star Bulk Carriers forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBLK's forecast earnings growth (5.8% per year) is above the savings rate (2%).

Earnings vs Market: SBLK's earnings (5.8% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: SBLK's earnings are forecast to grow, but not significantly.

Revenue vs Market: SBLK's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: SBLK's revenue is forecast to decline over the next 3 years (-2.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBLK's Return on Equity is forecast to be high in 3 years time (24.1%)


Past Performance

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

78.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBLK has high quality earnings.

Growing Profit Margin: SBLK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SBLK has become profitable over the past 5 years, growing earnings by 78% per year.

Accelerating Growth: SBLK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SBLK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Shipping industry (359.5%).


Return on Equity

High ROE: SBLK's Return on Equity (12%) is considered low.


Financial Health

How is Star Bulk Carriers's financial position?


Financial Position Analysis

Short Term Liabilities: SBLK's short term assets ($400.4M) exceed its short term liabilities ($356.1M).

Long Term Liabilities: SBLK's short term assets ($400.4M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: SBLK's debt to equity ratio (64.7%) is considered high.

Reducing Debt: SBLK's debt to equity ratio has reduced from 77.7% to 64.7% over the past 5 years.

Debt Coverage: SBLK's debt is well covered by operating cash flow (29.5%).

Interest Coverage: SBLK's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

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

13.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBLK's dividend (13.83%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: SBLK's dividend (13.83%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

Stable Dividend: SBLK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SBLK's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.6%), SBLK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBLK's dividends in 3 years are forecast to be covered by earnings (86.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Petros Pappas (68 yo)

7.17yrs

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...


Leadership Team

Experienced Management: SBLK's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: SBLK's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Star Bulk Carriers Corp.
  • Ticker: SBLK
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: US$2.070b
  • Shares outstanding: 102.24m
  • Website: https://www.starbulk.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:22
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.