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Star Bulk Carriers (SBLK)
NASDAQ:SBLK
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Star Bulk Carriers
(NASDAQ:SBLK)
77Outperform
Star Bulk Carriers (SBLK) vs. S&P 500 (SPY)
Market Cap
$1.88B
Dividend Yield15.87%
Average Volume (3M)2.36M
Price to Earnings (P/E)5.6
Beta (1Y)0.74
Revenue Growth33.31%
EPS Growth62.94%
CountryUS
Employees216
SectorIndustrials
Sector Strength72
IndustryTransportation
Share Statistics
EPS (TTM)2.86
Shares Outstanding118,825,310
10 Day Avg. Volume2,536,811
30 Day Avg. Volume2,360,242
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)N/A
Price to Sales (P/S)1.89
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.00Price Target Upside20.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Star Bulk Carriers Business Overview & Revenue Model
Company DescriptionStar Bulk Carriers Corp. is a holding company, which engages in the provision of seaborne transportation solutions in the dry bulk sector. It ships iron ore, coal and grain, bauxite, fertilizers, and steel products. The company was founded by Petros Alexandros Pappas on December 13, 2006 and is headquartered in Athens, Greece.
How the Company Makes MoneyStar Bulk Carriers makes money primarily through the chartering of its fleet of dry bulk vessels. The company earns revenue by entering into time charters and spot market voyages with customers who need to transport bulk commodities across various global routes. The revenue streams are influenced by factors such as freight rates, fleet utilization rates, and the size and efficiency of their vessels. Additionally, strategic partnerships and long-term contracts with major commodity producers and traders contribute to the company's earnings by providing stable and predictable income flows. The company's profitability is also affected by operating expenses, including crew costs, maintenance, and fuel prices, which are managed to optimize financial performance.
Star Bulk Carriers Financial Statement Overview
Summary
Star Bulk Carriers demonstrates strong financial health with impressive revenue growth, improved profit margins, and robust cash flow management. However, the company should monitor its substantial debt levels.Income Statement
Star Bulk Carriers has demonstrated strong financial performance with impressive revenue growth of 33.3% from 2023 to 2024. The gross profit margin improved marginally, indicating efficient cost management. The net profit margin increased significantly to 24.1%, reflecting enhanced profitability. EBIT and EBITDA margins also improved, showcasing operational efficiency.80
Positive
Balance Sheet
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.51, indicating moderate leverage. Return on equity increased to 12.3%, driven by higher net income. The equity ratio is stable at 60.7%, suggesting a solid equity base. However, the total debt remains substantial, necessitating careful debt management.75
Positive
Cash Flow
Star Bulk Carriers has shown robust cash flow management with a 29.8% growth in free cash flow. The operating cash flow to net income ratio stands at 1.53, indicating strong cash generation from operations. Free cash flow to net income ratio is 1.35, highlighting effective capital expenditure control.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.27B | 949.27M | 1.44B | 1.43B | 693.24M | Gross Profit |
| 439.46M | 394.75M | 677.46M | 774.97M | 98.37M | EBIT |
| 343.13M | 238.46M | 466.84M | 739.40M | -73.82M | EBITDA |
| 560.42M | 405.21M | 785.49M | 888.91M | 211.30M | Net Income Common Stockholders |
| 304.65M | 173.56M | 566.00M | 680.53M | 9.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 436.28M | 259.73M | 284.32M | 450.29M | 190.51M | Total Assets |
| 4.09B | 3.03B | 3.43B | 3.75B | 3.19B | Total Debt |
| 1.27B | 1.26B | 1.29B | 1.59B | 1.56B | Net Debt |
| 835.25M | 1.04B | 1.00B | 1.14B | 1.37B | Total Liabilities |
| 1.60B | 1.37B | 1.41B | 1.67B | 1.64B | Stockholders Equity |
| 2.48B | 1.66B | 2.02B | 2.08B | 1.55B |
| Cash Flow | Free Cash Flow | |||
| 412.28M | 317.69M | 744.50M | 636.92M | 98.49M | Operating Cash Flow |
| 467.38M | 335.78M | 769.90M | 767.07M | 170.55M | Investing Cash Flow |
| 356.18M | 235.52M | -20.87M | -121.26M | -66.33M | Financing Cash Flow |
| -644.42M | -595.89M | -935.95M | -368.07M | -34.95M |
Star Bulk Carriers Technical Analysis
Positive
15.79
Price Trends
15.24
Positive
16.40
Negative
18.95
Negative
Market Momentum
0.11
Negative
53.43
Neutral
75.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBLK, the sentiment is Positive. The current price of 15.79 is above the 20-day moving average (MA) of 15.61, above the 50-day MA of 15.24, and below the 200-day MA of 18.95, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 75.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBLK.
Star Bulk Carriers Risk Analysis
Star Bulk Carriers disclosed 54 risk factors in its most recent earnings report. Star Bulk Carriers reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Star Bulk Carriers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.88B | 5.63 | 14.71% | 15.87% | 33.31% | 62.94% | |
73 Outperform | $1.65B | 7.86 | 11.68% | 14.58% | 14.81% | 96.97% | |
71 Outperform | $386.45M | 4.57 | 11.99% | 5.45% | 10.27% | 36.29% | |
70 Outperform | $590.91M | 8.16 | 8.30% | 11.36% | 10.21% | ― | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
57 Neutral | $201.36M | 36.20 | 2.56% | 13.28% | -16.79% | -89.43% |
* Industrials Sector Average
Performance Comparison
SBLK
Star Bulk Carriers
15.79
-6.45
-29.00%
DSX
Diana Shipping
1.75
-1.14
-39.45%
GNK
Genco Shipping
13.50
-6.00
-30.77%
SB
Safe Bulkers
3.71
-1.10
-22.87%
GOGL
Golden Ocean Group
7.78
-4.38
-36.02%
Star Bulk Carriers Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -3.07% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial results and success in integration synergies, share repurchases, and ESG achievements. However, challenges in the market, such as slow growth projections for dry bulk trade and potential trade tensions, present concerns. Despite these challenges, the company's strategic actions and financial performance indicate a cautiously optimistic outlook.Highlights
Strong Financial Performance
Net income amounted to $42 million for Q4 2024, with adjusted EBITDA of $104 million and an adjusted net income of $41 million or $0.35 adjusted earnings per share.
Successful Share Repurchase Program
The company repurchased 500,000 shares for $7.4 million at an average price of $14.83. Since December 2024, a total of 893,500 shares were bought back for $13.5 million at an average price of $15.08.
Eagle Bulk Integration Synergies
Achieved $22 million in synergies from the Eagle Bulk integration, with a run rate of $50 million in annualized synergies, 12 months ahead of schedule.
ESG Achievements
Star Bulk sustained a B score in the Carbon Disclosure Project and achieved the Sapphire tier in the Vessel Speed Reduction program, with improved ESG Risk Smart Score to 18.4.
Fleet Management and Expansion
Completed 42 energy saving device installations and sold 13 vessels for $233 million, improving fleet efficiency and reducing average fleet age.
Lowlights
Challenging Market Conditions
The dry bulk trade is projected to increase only by 0.4% in tons and 0.9% in ton miles in 2025, with potential headwinds from geopolitical tensions and trade policies.
Decreased Ship Prices
Market for older vessels is facing decreased prices, impacting the company's ability to divest non-ECO vessels at favorable prices.
Potential Trade War Impact
Concerns over the impact of a potential trade war on grain trade, particularly in relation to Brazilian soybeans versus US, affecting ton-mile advantages.
Company Guidance
During the Star Bulk Carriers' Fourth Quarter 2024 Conference Call, key financial metrics were highlighted, including a net income of $42 million and an adjusted EBITDA of $104 million. The company declared an adjusted earnings per share of $0.35 and announced a dividend of $0.09 per share, payable on March 18, 2025. Star Bulk introduced a $100 million share repurchase program and repurchased 500,000 shares for $7.4 million at an average price of $14.83 per share. The company's pro forma cash stood at $452 million, while total debt was $1.3 billion. The time charter equivalent rate was $16,129 per vessel per day, with a combination of daily operating expenses and net cash G&A expenses totaling $6,320 per vessel per day. Synergies from the Eagle Bulk integration resulted in savings of approximately $22 million, achieving a $50 million annualized synergy target nearly 12 months ahead of schedule. The company reported a reduction in average net debt per vessel from $12.9 million to $5.4 million, and the fleet's average age was 11.8 years.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.