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Star Bulk Carriers (SBLK)
NASDAQ:SBLK
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Star Bulk Carriers
(NASDAQ:SBLK)
76Outperform
Star Bulk Carriers (SBLK) vs. S&P 500 (SPY)
Market Cap
$1.90B
Dividend Yield13.05%
Average Volume (3M)1.40M
Price to Earnings (P/E)8.3
Beta (1Y)0.98
Revenue Growth25.60%
EPS Growth-9.32%
CountryUS
Employees301
SectorIndustrials
Sector Strength91
IndustryMarine Shipping
Share Statistics
EPS (TTM)-0.07
Shares Outstanding117,127,530
10 Day Avg. Volume1,175,273
30 Day Avg. Volume1,398,756
Financial Highlights & Ratios
PEG Ratio-1.81
Price to Book (P/B)0.74
Price to Sales (P/S)0.00
P/FCF Ratio4.42
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit6.64
Enterprise Value/Ebitda1.46
Forecast
1Y Price Target
$19.00Price Target Upside17.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Star Bulk Carriers Business Overview & Revenue Model
Company DescriptionStar Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. The company's vessels transport a range of major bulks, including iron ores, coal, and grains, as well as minor bulks, such as bauxite, fertilizers, and steel products. As of December 31, 2021, it had a fleet of 128 vessels with an aggregate capacity of approximately 14.1 million deadweight tons, including 17 Newcastlemax, 24 Capesize, 7 Post Panamax, 41 Kamsarmax, 2 Panamax, 20 Ultramax, and 17 Supramax vessels. The company also provides vessel management services. Star Bulk Carriers Corp. was incorporated in 2006 and is based in Marousi, 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 shows strong financial performance with significant revenue growth and improved profitability margins. The company maintains effective cash flow management despite 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 |
| 420.50M | 394.75M | 677.46M | 774.97M | 98.37M | EBIT |
| 383.00M | 238.46M | 466.84M | 739.40M | -73.82M | EBITDA |
| 561.37M | 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 | |||
| 425.07M | 259.73M | 284.32M | 450.29M | 190.51M | Total Assets |
| 4.09B | 3.03B | 3.43B | 3.75B | 3.19B | Total Debt |
| 1.46B | 1.26B | 1.29B | 1.59B | 1.56B | Net Debt |
| 1.03B | 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
16.24
Price Trends
15.21
Positive
15.21
Positive
17.14
Negative
Market Momentum
0.48
Negative
62.42
Neutral
73.38
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 16.24 is above the 20-day moving average (MA) of 15.24, above the 50-day MA of 15.21, and below the 200-day MA of 17.14, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 62.42 is Neutral, neither overbought nor oversold. The STOCH value of 73.38 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.06B | 3.61 | 12.57% | 5.23% | 17.77% | -5.90% | |
78 Outperform | $1.62B | 3.55 | 14.14% | 3.81% | 4.93% | -17.08% | |
78 Outperform | $2.21B | 1.03 | 72.40% | 38.95% | 65.83% | ― | |
76 Outperform | $1.90B | 8.29 | 11.09% | 13.05% | 25.60% | -9.32% | |
71 Outperform | $1.27B | 21.18 | 5.09% | 12.30% | 6.68% | -57.55% | |
70 Neutral | $1.61B | 7.22 | 11.68% | 13.03% | 9.33% | 98.70% | |
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% |
* Industrials Sector Average
Performance Comparison
SBLK
Star Bulk Carriers
16.24
-7.38
-31.24%
CMRE
Costamare
8.76
-1.59
-15.36%
DAC
Danaos
86.84
4.18
5.06%
SFL
SFL Corporation
8.70
-4.23
-32.71%
GOGL
Golden Ocean Group
7.99
-5.94
-42.64%
ZIM
ZIM Integrated Shipping Services
19.37
6.99
56.46%
Star Bulk Carriers Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -1.04%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant cost synergies, strategic asset sales, and shareholder returns despite reporting an adjusted net loss and challenges in the dry bulk market. The company is actively managing its fleet and investing in regulatory compliance. However, market conditions remain volatile with a projected decline in key trades and challenges in China. Overall, the sentiment is balanced with notable achievements and challenges.Q1-2025 Updates
Positive Updates
Shareholder Returns and Liquidity
The company repurchased 1.3 million shares for $19.6 million and declared a dividend of $0.05 per share despite an adjusted net loss. Pro forma liquidity stands at almost $0.5 billion.
Cost Synergies from Eagle Bulk Integration
The integration of Eagle Bulk resulted in $40 million in cost synergies since April 2024, with $18.4 million achieved in Q1 2025 alone.
Operational Efficiency
Operating expenses and G&A savings for the Eagle fleet were close to $2,140 per vessel per day, with a further $8.6 million saved in dry dock costs for Q1 2025.
Environmental and Regulatory Compliance
Star Bulk is investing in fleet upgrades to meet new IMO regulations, with 42 energy-saving installations completed and 21 more planned for 2025.
Fleet Management and Asset Sales
The company sold several older vessels for $38.6 million, contributing to fleet efficiency improvements.
Negative Updates
Adjusted Net Loss
Reported an adjusted net loss of $7.8 million or $0.07 adjusted loss per share for Q1 2025.
Decline in Key Dry Bulk Trades
Total dry bulk trade is projected to contract by 1.2% in tons and 0.4% in ton-miles during 2025, with significant declines in coal and grain trade.
Challenges in Chinese Market
Chinese dry bulk imports contracted by 8.3% year-over-year in Q1 2025, driven by elevated inventories and increased domestic production.
Volatility in Market Outlook
The dry bulk market is expected to remain volatile with pros and cons affecting future demand and supply dynamics.
Company Guidance
In the first quarter of 2025, Star Bulk Carriers reported a net income of $0.5 million and an adjusted net loss of $7.8 million, equating to a $0.07 loss per share. The company declared a dividend of $0.05 per share, despite no obligation under the existing dividend formula, due to its strong financial position. The adjusted EBITDA for the quarter stood at $49 million. Star Bulk repurchased 1.3 million shares at a total cost of $19.6 million, reflecting a continued focus on returning value to shareholders. The company maintained a pro forma cash balance of $437 million and a total debt of $1.2 billion, with an additional $50 million available through an undrawn revolver. The fleet's average time charter equivalent rate was $12,439 per day, with combined daily operational and net cash general and administrative expenses amounting to $6,217 per vessel, resulting in a TCE net OpEx less cash G&A of approximately $6,220 per vessel per day. Since the completion of the Ecobank transaction in April 2024, the company achieved synergies amounting to nearly $40 million.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.