NYSE:SALT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with imperfect balance sheet.


Similar Companies

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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: SALT's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

7.6%

SALT

4.5%

US Shipping

2.1%

US Market


1 Year Return

-72.6%

SALT

-21.2%

US Shipping

19.8%

US Market

Return vs Industry: SALT underperformed the US Shipping industry which returned -21.2% over the past year.

Return vs Market: SALT underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

SALTIndustryMarket
7 Day7.6%4.5%2.1%
30 Day33.9%23.7%8.1%
90 Day13.3%28.6%6.0%
1 Year-72.1%-72.6%-19.4%-21.2%22.5%19.8%
3 Year-74.6%-77.5%-1.6%-9.2%46.5%36.8%
5 Year-81.8%-83.9%-38.4%-45.8%96.9%75.3%

Long-Term 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 ($16.22) is trading below our estimate of fair value ($58.59)

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


Price To Earnings Ratio

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

PE vs Market: SALT 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 SALT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SALT is good value based on its PB Ratio (0.3x) compared to the US Shipping industry average (0.4x).


Next Steps

Future Growth

How is Scorpio Bulkers forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

103.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SALT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SALT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SALT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SALT's revenue is expected to decline over the next 3 years (-33.8% per year).

High Growth Revenue: SALT's revenue is forecast to decline over the next 3 years (-33.8% 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 (1.1%).


Next Steps

Past Performance

How has Scorpio Bulkers performed over the past 5 years?

51.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SALT is currently unprofitable.

Growing Profit Margin: SALT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SALT is unprofitable, but has reduced losses over the past 5 years at a rate of 51.1% per year.

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

Earnings vs Industry: SALT is unprofitable, making it difficult to compare its past year earnings growth to the Shipping industry (8.9%).


Return on Equity

High ROE: SALT has a negative Return on Equity (-25.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is Scorpio Bulkers's financial position?


Financial Position Analysis

Short Term Liabilities: SALT's short term assets ($68.5M) do not cover its short term liabilities ($73.6M).

Long Term Liabilities: SALT's short term assets ($68.5M) do not cover its long term liabilities ($601.4M).


Debt to Equity History and Analysis

Debt Level: SALT's debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: SALT's debt to equity ratio has reduced from 33.1% to 33.1% over the past 5 years.


Balance Sheet


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: SALT has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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

1.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SALT's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SALT's dividend (1.23%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: SALT is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SALT is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Emanuele Lauro (41 yo)

7.33yrs

Tenure

Mr. Emanuele A. Lauro had been Chairman and Chief Executive Officer at Hermitage Offshore Services Ltd. since December 2018 and served as its Secretary. He is a Co-Founder of Scorpio Bulkers Inc. and has b...


Leadership Team

NamePositionTenureCompensationOwnership
Emanuele Lauro
Co-Founder7.33yrsno datano data
Robert Bugbee
Co-Founder7.58yrsno datano data
Hugh Baker
Chief Financial Officer7.33yrsno datano data
Cameron Mackey
Chief Operating Officer7.33yrsno datano data
Yang Fan
Secretary1.92yrsno datano data

7.3yrs

Average Tenure

52yo

Average Age

Experienced Management: SALT's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Emanuele Lauro
Co-Founder7.33yrsno datano data
Robert Bugbee
Co-Founder7.58yrsno datano data
James Nish
Independent Director4.83yrsno datano data
Roberto Giorgi
Independent Director6.92yrsno datano data
Thomas Ostrander
Independent Director4.83yrsno datano data
Einar Steimler
Lead Independent Directorno datano datano data
Christian Gut
Independent Director6.92yrsno datano data
Berit Henriksen
Independent Director1.75yrsno datano data

6.9yrs

Average Tenure

64yo

Average Age

Experienced Board: SALT's board of directors are considered experienced (6.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 74.9%.


Top Shareholders

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$194.995m
  • Shares outstanding: 12.02m
  • 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
SR42DB (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. As of December 31,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:37
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.