NYSE:SALT

Stock Analysis Report

Executive Summary

Scorpio Bulkers Inc., a shipping company, owns and operates dry bulk carriers worldwide.

Rewards

Trading at 94.4% below its fair value

Earnings are forecast to grow 23.5% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Star Bulk Carriers

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Share Price & News

How has Scorpio Bulkers's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.8%

SALT

0.9%

US Shipping

-0.3%

US Market


1 Year Return

-2.9%

SALT

10.7%

US Shipping

18.6%

US Market

Return vs Industry: SALT underperformed the US Shipping industry which returned 10.7% over the past year.

Return vs Market: SALT underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

SALTIndustryMarket
7 Day-2.8%0.9%-0.3%
30 Day-4.5%3.5%2.2%
90 Day-6.9%9.1%5.6%
1 Year6.5%-2.9%13.1%10.7%21.1%18.6%
3 Year22.6%10.2%10.5%4.6%45.6%36.2%
5 Year-73.1%-75.8%-46.2%-51.4%71.1%52.2%

Price Volatility Vs. Market

How volatile is Scorpio Bulkers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Scorpio Bulkers 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: SALT ($5.95) is trading below our estimate of fair value ($105.87)

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


Price To Earnings Ratio

PE vs Industry: SALT is good value based on its PE Ratio (18.3x) compared to the Shipping industry average (19x).

PE vs Market: SALT is good value based on its PE Ratio (18.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SALT is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SALT is good value based on its PB Ratio (0.5x) compared to the US Shipping industry average (0.5x).


Next Steps

Future Growth

How is Scorpio Bulkers forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SALT's forecast earnings growth (23.5% per year) is above the savings rate (1.7%).

Earnings vs Market: SALT's earnings (23.5% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SALT's revenue (11.3% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: SALT's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SALT's Return on Equity is forecast to be low in 3 years time (4.8%).


Next Steps

Past Performance

How has Scorpio Bulkers performed over the past 5 years?

42.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SALT has a large one-off loss of $15.6M impacting its September 30 2019 financial results.

Growing Profit Margin: SALT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SALT has become profitable over the past 5 years, growing earnings by 42.4% per year.

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

Earnings vs Industry: SALT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Shipping industry (-48.2%).


Return on Equity

High ROE: SALT's Return on Equity (2.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Scorpio Bulkers's financial position?


Financial Position Analysis

Short Term Liabilities: SALT's short term assets ($102.8M) do not cover its short term liabilities ($114.4M).

Long Term Liabilities: SALT's short term assets ($102.8M) do not cover its long term liabilities ($751.0M).


Debt to Equity History and Analysis

Debt Level: SALT's debt to equity ratio (89.4%) is considered high.

Reducing Debt: SALT's debt to equity ratio has increased from 5.8% to 89.4% over the past 5 years.

Debt Coverage: SALT's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: SALT's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: SALT's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Scorpio Bulkers's current dividend yield, its reliability and sustainability?

1.34%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: SALT's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: SALT's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SALT has been paying a dividend for less than 10 years.

Growing Dividend: SALT has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.1%), SALT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SALT's dividends in 3 years are forecast to be thoroughly covered by earnings (11.9% payout ratio).


Next Steps

Management

What is the CEO of Scorpio Bulkers's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

Emanuele Lauro (40yo)

6.4yrs

Tenure

0

Mr. Emanuele A. Lauro serves as Chairman, Chief Executive Officer and Secretary at Hermitage Offshore Services Ltd. He is a Co-Founder of Scorpio Bulkers Inc. and has been its Chairman and Chief Executive  ...


Management Age and Tenure

6.4yrs

Average Tenure

51yo

Average Age

Experienced Management: SALT's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

63yo

Average Age

Experienced Board: SALT's board of directors are considered experienced (6 years average tenure).


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • Robert Bugbee (59yo)

    Co-Founder

    • Tenure: 6.7yrs
  • Cam Mackey (51yo)

    Chief Operating Officer

    • Tenure: 6.4yrs
  • Emanuele Lauro (40yo)

    Co-Founder

    • Tenure: 6.4yrs
  • Hugh Baker (51yo)

    Chief Financial Officer

    • Tenure: 6.4yrs
  • Yang Fan (30yo)

    Secretary

    • Tenure: 1yrs

Board Members

  • Robert Bugbee (59yo)

    Co-Founder

    • Tenure: 6.7yrs
  • Jim Nish (60yo)

    Independent Director

    • Tenure: 3.9yrs
  • Roberto Giorgi (69yo)

    Independent Director

    • Tenure: 6yrs
  • Tom Ostrander (68yo)

    Independent Director

    • Tenure: 3.9yrs
  • Einar Steimler (71yo)

    Lead Independent Director

    • Tenure: 0yrs
  • Emanuele Lauro (40yo)

    Co-Founder

    • Tenure: 6.4yrs
  • Christian Gut (40yo)

    Independent Director

    • Tenure: 6yrs
  • Berit Henriksen (66yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Scorpio Bulkers Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Scorpio Bulkers Inc.
  • Ticker: SALT
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: US$397.972m
  • Shares outstanding: 68.73m
  • Website: https://www.scorpiobulkers.com

Number of Employees


Location

  • Scorpio Bulkers Inc.
  • Le Millenium
  • 9, Boulevard Charles III
  • Monaco
  • 98000
  • Monaco

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SALTNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2013
SR41DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2013

Biography

Scorpio Bulkers Inc., a shipping company, owns and operates dry bulk carriers worldwide. Its vessels transport a range of bulk commodities, including ores, coal, grains, and fertilizers. The company owns a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:43
End of Day Share Price2019/12/06 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.