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Star Bulk Carriers (SBLK)
:SBLK
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Star Bulk Carriers
(NASDAQ:SBLK)
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Rating:74Outperform
Price Target:
$21.00
▲(14.07% Upside)
Star Bulk Carriers receives a solid score driven by strong financial performance and positive technical indicators. The company's robust liquidity and successful cost management further support the score. However, high debt levels and moderate valuation metrics slightly offset these strengths.
Star Bulk Carriers (SBLK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.12B
Dividend Yield4.29%
Average Volume (3M)1.13M
Price to Earnings (P/E)17.5
Beta (1Y)1.05
Revenue Growth2.95%
EPS Growth-61.74%
CountryUS
Employees301
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.11
Shares Outstanding114,585,310
10 Day Avg. Volume922,153
30 Day Avg. Volume1,129,713
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue2.32
Enterprise Value/Gross Profit6.90
Enterprise Value/Ebitda5.42
Forecast
1Y Price Target
$21.00Price Target Upside14.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Star Bulk Carriers Business Overview & Revenue Model
Company DescriptionStar Bulk Carriers Corp. (SBLK) is a leading global provider of marine transportation services, specializing in the transportation of dry bulk commodities such as iron ore, coal, grain, and other bulk materials. The company operates a modern fleet of large bulk carriers, which are utilized to serve a diverse customer base, including commodity traders, industrial manufacturers, and government entities. Star Bulk Carriers is primarily focused on the dry bulk shipping sector, offering reliable and efficient shipping solutions across major trade routes worldwide.
How the Company Makes MoneyStar Bulk Carriers generates revenue primarily through the chartering of its vessels for the transportation of dry bulk commodities. The company operates under various charter arrangements, including time charters and voyage charters. In time charters, SBLK leases its ships for a specified period, receiving a fixed daily rate. In voyage charters, the company is paid a fee for transporting cargo from one port to another, with rates often linked to market conditions. Additionally, Star Bulk may enter into contracts of affreightment, where it commits to transporting a certain volume of cargo over a period, securing predictable revenue streams. The company's earnings are significantly influenced by global shipping demand, commodity prices, and operational efficiency. Strategic partnerships with commodity traders and industrial clients also enhance revenue stability and growth opportunities.
Star Bulk Carriers Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Star Bulk Carriers, with strong liquidity, successful cost synergies, and an optimistic market outlook. However, challenges remain with low net income, high debt levels, and a decline in Chinese dry bulk imports. Overall, the highlights outweigh the lowlights, indicating a generally positive sentiment.Q2-2025 Updates
Positive Updates
Adjusted Net Income Growth
Adjusted net income for Q2 2025 was $13.2 million, or $0.11 per share.
Strong Liquidity Position
Total cash stands at $407 million, with additional liquidity from undrawn revolver facilities totaling more than $0.5 billion.
Successful Cost Synergy Realization
Over $53 million of cumulative cost synergies have been achieved since April 2024, with $13 million of synergies realized in Q2 2025.
Significant Share Buybacks
Repurchased 3.3 million shares for a total of $54 million during the quarter.
Fleet Modernization and Sales
Continued disposal of older vessels, with expected net sales proceeds of $104 million during Q3 and Q4 2025.
Positive Market Outlook
Optimistic about medium to long-term market outlook supported by favorable supply outlook and stricter environmental regulations.
Negative Updates
Low Net Income
Net income for Q2 2025 was only $40,000.
Decline in Chinese Dry Bulk Imports
Chinese dry bulk imports contracted by 4.2% year-over-year in the first half of 2025.
Projected Contraction in Key Trades
Coal trade is projected to contract by 5.8% in tons and by 7.6% in ton-miles during 2025.
High Debt Levels
Total debt stands at $1.12 billion.
Company Guidance
During the Star Bulk Carriers conference call for the second quarter of 2025, the company reported a net income of $40,000, with an adjusted net income of $13.2 million or $0.11 per share. The adjusted EBITDA was $69 million, and a dividend of $0.05 per share was declared, payable on September 10. The company repurchased 3.3 million shares for $54 million, with total cash standing at $407 million and total debt at $1.12 billion. They have pro forma liquidity of over $0.5 billion, including undrawn revolver facilities of $115 million. The time charter equivalent rate was $13,624 per vessel per day, while combined daily operating and G&A expenses were $6,277 per vessel. Since 2021, net debt has been reduced by 46% to $5.3 million per vessel. The company has achieved over $53 million in cumulative cost synergies post-Agle acquisition, with $13 million saved in Q2 2025 alone. Total dry dock expenses for the year are estimated at $33 million for 30 vessels, with approximately 1,000 off-hire days anticipated. The company also highlighted that the global dry bulk trade is expected to contract by 0.9% in 2025, while ton-miles are projected to grow by 0.2%.Star Bulk Carriers Financial Statement Overview
Summary
Star Bulk Carriers demonstrates strong financial performance with significant revenue and profit growth, efficient operations, and effective cash flow management. However, the company should remain vigilant regarding its substantial debt levels to ensure long-term financial stability.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 | 259.24M | 677.46M | 774.97M | 98.37M |
| EBITDA | 565.99M | 405.21M | 785.49M | 888.91M | 211.30M |
| Net Income | 304.65M | 173.56M | 566.00M | 680.53M | 9.66M |
Balance Sheet | |||||
| Total Assets | 4.09B | 3.03B | 3.43B | 3.75B | 3.19B |
| Cash, Cash Equivalents and Short-Term Investments | 425.07M | 259.73M | 284.32M | 450.29M | 190.51M |
| Total Debt | 1.46B | 1.26B | 1.29B | 1.59B | 1.56B |
| 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
Neutral
18.41
Price Trends
18.99
Negative
18.04
Positive
16.54
Positive
Market Momentum
-0.10
Positive
39.56
Neutral
12.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBLK, the sentiment is Neutral. The current price of 18.41 is below the 20-day moving average (MA) of 19.27, below the 50-day MA of 18.99, and above the 200-day MA of 16.54, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 39.56 is Neutral, neither overbought nor oversold. The STOCH value of 12.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.44B | 5.05 | 14.61% | 3.86% | -7.24% | -16.39% | |
79 Outperform | $1.28B | 4.42 | 9.89% | 0.45% | -0.47% | -22.23% | |
74 Outperform | $2.12B | 17.52 | 5.11% | 4.29% | 2.95% | -61.74% | |
69 Neutral | $1.62B | 3.65 | 13.38% | 3.83% | 5.63% | -17.54% | |
67 Neutral | ― | ― | ― | ― | -7.73% | -39.13% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $1.00B | 28.99 | 3.35% | 13.03% | 3.51% | -74.09% |
* Industrials Sector Average
SBLK
Star Bulk Carriers
18.41
-3.05
-14.21%
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DAC
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-28.86%
SFL
SFL Corporation
7.75
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GOGL
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7.98
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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.