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Safe Bulkers (SB)
NYSE:SB
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Safe Bulkers
(NYSE:SB)
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Rating:70Neutral
Price Target:
$5.00
â–²(11.86% Upside)
Safe Bulkers' overall score is driven by solid financial performance and reasonable valuation, despite challenges in revenue and profitability. Technical indicators suggest strong momentum, but caution is advised due to overbought conditions. The earnings call highlights strategic fleet management and liquidity, though profitability concerns remain.
Safe Bulkers (SB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$457.37M
Dividend Yield4.47%
Average Volume (3M)362.79K
Price to Earnings (P/E)10.5
Beta (1Y)1.01
Revenue Growth-9.65%
EPS Growth-46.46%
CountryUS
Employees941
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.01
Shares Outstanding102,320,100
10 Day Avg. Volume391,954
30 Day Avg. Volume362,786
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.46
Price to Sales (P/S)1.25
P/FCF Ratio-26.82
Enterprise Value/Market Cap1.76
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit7.57
Enterprise Value/Ebitda6.12
Forecast
1Y Price Target
$5.00Price Target Upside11.86% Upside
Rating ConsensusHold
Number of Analyst Covering0
Safe Bulkers Business Overview & Revenue Model
Company DescriptionSafe Bulkers, Inc., together with its subsidiaries, provides marine drybulk transportation services. It owns and operates drybulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore. As of March 18, 2022, the company had a fleet of 40 drybulk vessels having an average age of 10.4 years; and an aggregate carrying capacity of 3,925,500 deadweight tons. Its fleet consisted of 12 Panamax class vessels, 7 Kamsarmax class vessels, 15 post- Panamax class vessels, and 6 Capesize class vessels. Safe Bulkers, Inc. was incorporated in 2007 and is based in Monaco.
How the Company Makes MoneySafe Bulkers generates revenue primarily through the chartering of its fleet of drybulk vessels. The company employs a mix of time charters, which provide steady income for a set period, and spot charters, which allow for dynamic pricing based on market conditions. Key revenue streams include long-term contracts with major shipping companies and commodity producers, as well as participation in the spot market to capture favorable shipping rates. Additionally, Safe Bulkers benefits from operational efficiencies and cost management practices that enhance profitability. The company's strategic partnerships with industry players and its commitment to maintaining a modern and efficient fleet also contribute significantly to its earnings.
Safe Bulkers Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive and negative aspects. On the positive side, Safe Bulkers showcased strong fleet renewal efforts, consistent dividend payouts, and robust liquidity and capital resources. However, these positives are tempered by decreased revenues, lower profitability, increased operating expenses, and reduced earnings per share due to a weaker charter market.Q2-2025 Updates
Positive Updates
Fleet Renewal and Expansion
Safe Bulkers has taken delivery of its 12th newbuild and sold one of its oldest vessels, maintaining a young fleet with an average age of 10.3 years versus the global average of 12.6 years. The company has 6 more Phase 3 vessels on order, 2 of which are dual-fuel methanol, aligning with global environmental standards.
Strong Liquidity and Capital Resources
The company maintains $125 million in cash, $188 million in undrawn revolving credit facilities, and $176 million borrowing capacity. This financial strength supports their newbuild program and fleet expansion.
Dividend Consistency
Safe Bulkers declared its 15th consecutive quarterly dividend of $0.05 per share, representing a 4.7% dividend yield.
Environmental and Regulatory Compliance
The company achieved a 0 vessels rating in D and E carbon intensity CII rating for 2024, and 80% of its fleet comprises Japanese-built vessels for energy efficiency.
Negative Updates
Decreased Revenue and Profitability
The company reported decreased revenues due to a weaker charter market, lower charter hires, and decreased earnings from scrubber-fitted vessels. Adjusted EBITDA dropped from $41.8 million in Q2 2024 to $25.5 million in Q2 2025.
Increased Operating Expenses
Daily vessel operating expenses increased by 6% to $6,607 in Q2 2025 compared to Q2 2024, with a 10% increase in expenses excluding dry-docking and predelivery costs.
Lower Earnings Per Share
Adjusted earnings per share for Q2 2025 was $0.01, down from $0.17 in Q2 2024.
Company Guidance
During the Safe Bulkers second quarter 2025 conference call, the company highlighted several key metrics and strategic moves amidst a softer market environment. The firm declared a $0.05 per share dividend, maintaining a 4.7% annualized yield, and reported an adjusted EBITDA of $25.5 million, down from $41.8 million in the same period of 2024. They operated an average of 46.75 vessels with a time charter equivalent of $14,857, a decrease from $18,650 in 2024. The company emphasized maintaining strong liquidity with $104 million in cash and $315 million in combined liquidity and capital resources, alongside a comfortable leverage of 38%. The fleet renewal strategy included the delivery of their 12th newbuild and the sale of an older vessel, while focusing on energy-efficient newbuilds to compete within the global environmental regulatory landscape. Additionally, Safe Bulkers secured $171 million in contracted revenue and maintained a low net debt per vessel of $9.1 million, underscoring their strategic focus on long-term value creation and fleet optimization.Safe Bulkers Financial Statement Overview
Summary
Safe Bulkers demonstrates solid operational efficiency and strong cash flow management, despite a decline in revenue and net income. The balance sheet shows a healthy equity position but highlights a reliance on debt. Overall, the company is stable with potential for future growth if revenue trends reverse.Income Statement
The TTM (Trailing-Twelve-Months) revenue shows a decline compared to the previous full year. Gross profit and EBITDA margins remain strong at 42.23% and 45.66% respectively, despite the revenue drop, indicating efficiency in cost management. However, the net profit margin has slightly decreased to 27.32% from 31.66% in the previous year, reflecting a slight dip in profitability.70
Positive
Balance Sheet
The debt-to-equity ratio is moderately high at 0.63, suggesting reliance on debt, though it is stable compared to previous years. Return on equity remains robust at 9.59%, indicating good profitability relative to equity. The equity ratio of 59.86% suggests a strong equity base, providing stability.65
Positive
Cash Flow
Operating cash flow is positive, although decreased compared to the previous year, indicating strong cash generation. The free cash flow has improved significantly, moving from negative to positive, showing better cash management. The operating cash flow to net income ratio of 1.22 indicates efficient conversion of net income into cash.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 277.51M | 307.63M | 284.40M | 349.72M | 329.03M | 198.16M |
| Gross Profit | 106.34M | 140.17M | 119.41M | 210.02M | 194.87M | 32.22M |
| EBITDA | 131.63M | 186.89M | 156.19M | 242.57M | 245.13M | 64.75M |
| Net Income | 53.43M | 97.38M | 77.35M | 172.55M | 174.35M | -12.90M |
Balance Sheet | ||||||
| Total Assets | 1.41B | 1.40B | 1.34B | 1.25B | 1.09B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 117.43M | 125.42M | 87.92M | 113.38M | 102.08M | 101.82M |
| Total Debt | 552.59M | 536.64M | 507.92M | 414.36M | 377.65M | 607.67M |
| Total Liabilities | 593.67M | 571.48M | 547.30M | 474.00M | 415.08M | 660.88M |
| Stockholders Equity | 815.58M | 831.62M | 792.51M | 771.92M | 679.24M | 444.75M |
Cash Flow | ||||||
| Free Cash Flow | 34.61M | -14.32M | -86.90M | 34.72M | 107.97M | 12.93M |
| Operating Cash Flow | 75.62M | 130.46M | 122.21M | 218.00M | 217.20M | 63.38M |
| Investing Cash Flow | -66.74M | -71.73M | -151.73M | -229.40M | 8.55M | -34.78M |
| Financing Cash Flow | 17.38M | -25.86M | 29.14M | -40.10M | -225.90M | -9.29M |
Safe Bulkers Technical Analysis
Neutral
4.47
Price Trends
4.32
Positive
4.05
Positive
3.75
Positive
Market Momentum
0.05
Positive
50.87
Neutral
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SB, the sentiment is Neutral. The current price of 4.47 is below the 20-day moving average (MA) of 4.53, above the 50-day MA of 4.32, and above the 200-day MA of 3.75, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SB.
Safe Bulkers Risk Analysis
Safe Bulkers disclosed 72 risk factors in its most recent earnings report. Safe Bulkers 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
Safe Bulkers Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $404.84M | 3.39 | 32.88% | 4.50% | 7.73% | 0.50% | |
71 Outperform | $173.07M | 10.95 | 5.93% | 5.56% | 1.66% | -46.13% | |
70 Neutral | $457.37M | 10.47 | 6.58% | 4.47% | -9.65% | -46.46% | |
67 Neutral | $739.76M | 49.36 | 1.70% | 5.81% | -17.15% | 2.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $332.08M | 23.30 | 2.37% | 5.89% | 15.09% | -71.58% | |
61 Neutral | $195.66M | 12.96 | 4.23% | 2.37% | -4.90% | 21.09% |
* Industrials Sector Average
SB
Safe Bulkers
4.47
-0.35
-7.26%
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-0.12%
SHIP
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.