Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide.
Star Bulk Carriers Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$20.25|
|52 Week High||US$6.12|
|52 Week Low||US$26.00|
|1 Month Change||-0.29%|
|3 Month Change||-10.71%|
|1 Year Change||210.58%|
|3 Year Change||54.58%|
|5 Year Change||337.37%|
|Change since IPO||-66.14%|
Recent News & Updates
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.
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.
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
|SBLK||US Shipping||US Market|
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.
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
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.
Is Star Bulk Carriers undervalued compared to its fair value and its price relative to the market?
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).
How is Star Bulk Carriers forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
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%)
How has Star Bulk Carriers performed over the past 5 years?
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.
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).
What is Star Bulk Carriers's current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Petros Pappas (68 yo)
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...
Experienced Management: SBLK's management team is seasoned and experienced (7.2 years average tenure).
Experienced Board: SBLK's board of directors are considered experienced (3.1 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.
Star Bulk Carriers Corp.'s employee growth, exchange listings and data sources
- 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
- Star Bulk Carriers Corp.
- 40 Agiou Konstantinou Street
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/22 00:22|
|End of Day Share Price||2021/09/21 00:00|
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.