NYSE:SB

Stock Analysis Report

Executive Summary

Safe Bulkers, Inc. provides marine drybulk transportation services worldwide.

Snowflake

Fundamentals

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.6%

SB

2.5%

US Shipping

2.3%

US Market


1 Year Return

-28.8%

SB

-3.0%

US Shipping

5.6%

US Market

Return vs Industry: SB underperformed the US Shipping industry which returned -3% over the past year.

Return vs Market: SB underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

SBIndustryMarket
7 Day-1.6%2.5%2.3%
30 Day-7.0%-1.2%-1.0%
90 Day-18.1%4.2%-0.7%
1 Year-28.8%-28.8%-1.3%-3.0%7.9%5.6%
3 Year31.2%31.2%20.9%12.8%45.6%36.3%
5 Year-68.4%-69.0%-59.8%-62.8%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Safe 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

Undervalued: SB ($1.85) is trading below our estimate of fair value ($16.1)

Significantly Undervalued: SB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SB is good value based on its PE Ratio (14.4x) compared to the Shipping industry average (25.4x).

PE vs Market: SB is good value based on its PE Ratio (14.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SB is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: SB is good value based on its PB Ratio (0.4x) compared to the US Shipping industry average (0.6x).


Next Steps

Future Growth

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

71.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SB's forecast earnings growth (71.7% per year) is above the savings rate (2.7%).

Earnings vs Market: SB's earnings (71.7% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: SB's revenue (10.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SB's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SB's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Safe Bulkers performed over the past 5 years?

-15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SB's earnings have declined by -15.2% per year over the past 5 years.

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

Earnings vs Industry: SB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Shipping industry (-62.3%).


Return on Equity

High ROE: SB's Return on Equity (5.2%) is considered low.


Return on Assets

ROA vs Industry: SB has a higher Return on Assets than the Shipping industry average last year.


Return on Capital Employed

ROCE Improving: SB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Safe Bulkers's financial position?


Financial Position Analysis

Short Term Liabilities: SB's short term assets ($104.5M) exceeds its short term liabilities ($62.3M)

Long Term Liabilities: SB's short term assets (104.5M) do not cover its long term liabilities (523.2M)


Debt to Equity History and Analysis

Debt Level: SB's debt to equity ratio (113.3%) is considered high

Reducing Debt: SB's debt to equity ratio has increased from 73.3% to 113.3% over the past 5 years.

Debt Coverage: SB's debt is not well covered by operating cash flow (12.1%).

Interest Coverage: SB's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: SB's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

3.78%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage4.2%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

Polys Hajioannou (52yo)

11.8yrs

Tenure

0

Mr. Polys Hajioannou has been the Chairman and Chief Executive Officer of Safe Bulkers, Inc. since 2008. Mr. Hajioannou serves at Safety Management Overseas S.A. He also serves at Alassia Steamship Co., Lt ...


Management Age and Tenure

11.8yrs

Average Tenure

56yo

Average Age

Experienced Management: SB's management team is seasoned and experienced (11.8 years average tenure).


Board Age and Tenure

11.4yrs

Average Tenure

60yo

Average Age

Experienced Board: SB's board of directors are seasoned and experienced ( 11.4 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


Management Team

  • Polys Hajioannou (52yo)

    Chairman & CEO

    • Tenure: 11.8yrs
  • Konstantinos Adamopoulos (56yo)

    CFO & Director

    • Tenure: 11.8yrs
  • Loukas Barmparis (56yo)

    President

    • Tenure: 11.8yrs
  • John Foteinos (60yo)

    COO & Director

    • Tenure: 10.7yrs

Board Members

  • Frank Sica (68yo)

    Director

    • Tenure: 8.3yrs
  • Polys Hajioannou (52yo)

    Chairman & CEO

    • Tenure: 11.8yrs
  • Konstantinos Adamopoulos (56yo)

    CFO & Director

    • Tenure: 11.8yrs
  • Ole Wikborg (63yo)

    Director

    • Tenure: 11.8yrs
  • Loukas Barmparis (56yo)

    President

    • Tenure: 11.8yrs
  • John Foteinos (60yo)

    COO & Director

    • Tenure: 10.7yrs
  • Chris Megalou (60yo)

    Director

    • Tenure: 3.1yrs

Company Information

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


Key Information

  • Name: Safe Bulkers, Inc.
  • Ticker: SB
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: US$187.352m
  • Shares outstanding: 101.27m
  • Website: https://www.safebulkers.com

Number of Employees


Location

  • Safe Bulkers, Inc.
  • Les Acanthes
  • Apartment D11
  • Monaco
  • 98000
  • Monaco

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2008
SBLDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2008
SB.PRCNYSE (New York Stock Exchange)RED PERP PFD C%USUSDMay 2014
SB.PRDNYSE (New York Stock Exchange)PERP PFD SER DUSUSDJun 2014

Biography

Safe Bulkers, Inc. provides marine drybulk transportation services worldwide. It owns and operates drybulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore. As of February 14, 2019 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:03
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.