NasdaqGS: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 48.9% below its fair value

Earnings are forecast to grow 53.02% per year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Moderate growth potential and slightly overvalued.


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

4.9%

SBLK

1.8%

US Shipping

1.5%

US Market


1 Year Return

3.8%

SBLK

1.7%

US Shipping

20.1%

US Market

Return vs Industry: SBLK exceeded the US Shipping industry which returned 1.7% over the past year.

Return vs Market: SBLK underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

SBLKIndustryMarket
7 Day4.9%1.8%1.5%
30 Day-19.9%-16.2%1.4%
90 Day-16.2%-8.2%8.7%
1 Year4.3%3.8%3.6%1.7%22.7%20.1%
3 Year3.5%3.0%1.2%-4.2%50.1%40.5%
5 Year-60.9%-61.1%-47.8%-53.4%73.1%54.1%

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

Valuation

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

48.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBLK ($8.51) is trading below our estimate of fair value ($16.65)

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 US 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 overvalued based on its PB Ratio (0.5x) compared to the US Shipping industry average (0.4x).


Next Steps

Future Growth

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

53.0%

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 (1.7%).

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 (2.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SBLK's revenue (2.1% 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 (11.3%).


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 (22%).


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?

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage4.3%forecastin3Years14.4%

Current dividend yield vs market & industry

Notable Dividend: SBLK's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SBLK's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 (72.3% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Petros Pappas (66yo)

5.6yrs

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

NamePositionTenureCompensationOwnership
Petros Pappas
Founder5.6yrsUS$9.89k4.14% $33.3m
Hamish Norton
President5.6yrsno data0.18% $1.5m
Simos Spyrou
Co-Chief Financial Officer8.4yrsno data0.11% $919.0k
Christos Begleris
Co-Chief Financial Officer5.6yrsno data0.14% $1.2m
Nicos Rescos
Chief Operating Officer5.6yrsno datano data
Zenon Kleopas
Executive Vice President of Technical Operations0yrsno datano data
Georgia Mastagaki
Co-General Counsel0yrsno datano data
Charis Plakantonaki
Chief Strategy Officer2.8yrsno datano data
Herman Billung
Senior Vice President1.6yrsno datano data
Constantinos Simantiras
Head of Market Research0yrsno datano data

5.6yrs

Average Tenure

47yo

Average Age

Experienced Management: SBLK's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Petros Pappas
Founder5.6yrsUS$9.89k4.14% $33.3m
Arne Blystad
Director1.6yrsno data2.28% $18.4m
Tom Søfteland
Independent Director0yrsUS$37.50kno data
Koert Erhardt
Independent Director0yrsUS$35.67k0.085% $681.2k
Spyros Capralos
Non-Executive Chairman5.6yrsUS$15.49k0.28% $2.2m
Brian Laibow
Director0.08yrsno datano data
Mahesh Balakrishnan
Independent Director5yrsno data0.0050% $40.0k
Nikolaos Karellis
Independent Director3.8yrsno data0.043% $346.8k
Raffaele Zagari
Director1.5yrsno datano data
Dawna Men
Director0.08yrsno datano data

1.6yrs

Average Tenure

63yo

Average Age

Experienced Board: SBLK's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: NasdaqGS
  • Founded: 2006
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: US$804.490m
  • 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 Analysis2020/02/17 00:35
End of Day Share Price2020/02/14 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.