Safe Bulkers (SB) AI Stock Analysis

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Safe Bulkers

(NYSE:SB)

Rating:68Neutral

Price Target:

$4.00

▲(3.09%Upside)

Safe Bulkers' overall score is driven by its solid financial performance and undervaluation, counterbalanced by market challenges highlighted in the earnings call. The company's strong balance sheet and dividend policy are positive, but revenue and cash flow concerns weigh on the score.

Safe Bulkers (SB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$396.96M

Dividend Yield5.15%

Average Volume (3M)382.19K

Price to Earnings (P/E)5.8

Beta (1Y)0.95

Revenue Growth-2.98%

EPS Growth-0.96%

CountryUS

Employees941

SectorIndustrials

Sector Strength85

IndustryMarine Shipping

Share Statistics

EPS (TTM)0.05

Shares Outstanding102,309,940

10 Day Avg. Volume405,330

30 Day Avg. Volume382,194

Financial Highlights & Ratios

PEG Ratio-0.54

Price to Book (P/B)0.48

Price to Sales (P/S)0.00

P/FCF Ratio6.25

Enterprise Value/Market Cap2.12

Enterprise Value/Revenue0.68

Enterprise Value/Gross Profit5.99

Enterprise Value/Ebitda1.22

Forecast

1Y Price Target

$5.00

Price Target Upside28.87% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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 makes money primarily through the chartering of its dry bulk vessels to customers who need to transport bulk commodities. The company enters into time charter agreements where vessels are leased out for a specific period at a predetermined daily rate. Revenue is generated based on the number of days the vessel is chartered and the agreed-upon rate. Additionally, Safe Bulkers may also engage in spot chartering, where vessels are hired for single voyages at market rates. The company's earnings are influenced by factors such as global demand for bulk commodities, shipping market conditions, and the availability of vessels. Key partnerships with major commodity producers and traders can also contribute to its revenue streams.

Safe Bulkers Earnings Call Summary

Earnings Call Date:May 19, 2025

(Q1-2025)

% Change Since: 6.01%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mixed sentiment. The company showcased a strong balance sheet, consistent dividends, and successful vessel deliveries, but faced significant challenges with a weaker charter market, decreased revenues, and increased operating expenses. Despite strategic initiatives to strengthen their fleet and financial position, market conditions remain challenging.

Q1-2025 Updates

Positive Updates

Strong Balance Sheet and Capital Structure

Safe Bulkers maintained a strong capital structure, with ample liquidity and a leverage of about 37%.

New Vessel Deliveries and Environmental Upgrades

The company took delivery of its 12th newbuild and has environmentally upgraded 24 vessels, with 11 being ECO vessels. They have six more Phase III vessels on order.

Consistent Dividend Policy

Declared a 14th consecutive quarterly dividend of $0.05, representing a 5.5% dividend yield.

Share Repurchase Program

Completed a repurchase program of 3 million common shares, amounting to roughly 3% of the company's common stock.

Cash Position and Financial Flexibility

Reported a strong cash position of around $122 million and $128 million available in committed revolving credit facilities.

Negative Updates

Weaker Charter Market Environment

Faced a softer charter market due to seasonality and geopolitical uncertainties, leading to decreased revenues and increased operating expenses.

Decreased Adjusted EBITDA

Adjusted EBITDA for Q1 2025 stood at $29.4 million, compared to $64.3 million for the same period in 2024.

Decreased Earnings Per Share

Adjusted earnings per share for Q1 2025 was $0.05, compared to $0.20 during the same period in 2024.

Increased Operating Expenses

Daily vessel operating expenses increased by 6% to $5,765 for Q1 2025 compared to $5,442 for the same period in 2024.

Soft Panamax Charter Market

The Panamax charter market remains soft at about $11,500, reflecting a challenging market environment.

Company Guidance

During the first quarter of 2025, Safe Bulkers faced a challenging market environment characterized by softer charter markets, geopolitical uncertainties, and tariff-related concerns. Despite these challenges, the company maintained a strong balance sheet and completed the delivery of its 12th newbuild. Safe Bulkers declared a $0.05 per share dividend, reflecting a 5.5% dividend yield, and completed a share repurchase program of 3 million common shares, amounting to a 3% buyback. The company's leverage was approximately 37%, with ample liquidity and capital resources of $276 million. The global drybulk demand is expected to range from -1% to 0% in 2025, with grain and minor bulk shipments anticipated to drive growth. Safe Bulkers continues to focus on fleet renewal, environmental performance, and capital allocation towards newbuilds to enhance shareholder value, with $203 million in revenue backlog providing cash flow visibility. The company maintained a young fleet with an average age of 10 years and achieved zero vessels in the D and E carbon intensity ratings for 2024.

Safe Bulkers Financial Statement Overview

Summary

Safe Bulkers exhibits strong revenue growth and profitability, with improved equity ratios. However, the recent decline in revenue growth and negative free cash flow are concerns that could affect financial stability.

Income Statement

Positive

The company has shown consistent revenue growth from 2019 to 2024, reaching $307.63 million in 2024. Gross profit margin improved significantly from 2020, reaching 45.57% in 2024. Net profit margin has also improved, marking 31.65% in 2024, indicating strong profitability. However, there's a decline in revenue from 2022 to 2023, which could be a concern.

Balance Sheet

Positive

Safe Bulkers maintains a moderate debt-to-equity ratio of 0.65 in 2024, reflecting manageable leverage. The equity ratio has improved, reaching 59.27% in 2024, indicating a strong equity base. However, the increase in total debt from 2020 to 2024 could pose potential risks if leverage increases further.

Cash Flow

Positive

The company's operating cash flow has remained strong, but free cash flow has been negative in recent years, notably -$14.32 million in 2024. The operating cash flow to net income ratio suggests strong cash generation relative to profits, but negative free cash flow could limit financial flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
307.63M	284.40M	349.72M	329.03M	198.16M
	Gross Profit
140.17M	119.41M	210.02M	194.87M	32.22M
	EBIT
128.43M	104.15M	132.55M	116.38M	-45.55M
	EBITDA
186.89M	156.19M	234.17M	232.20M	64.75M
	Net Income Common Stockholders
97.38M	77.35M	172.55M	174.35M	20.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
125.42M	87.92M	114.38M	102.08M	105.22M
	Total Assets
1.40B	1.34B	1.25B	1.09B	1.11B
	Total Debt
536.64M	507.92M	414.36M	377.65M	607.67M
	Net Debt
455.56M	458.98M	365.18M	276.65M	517.63M
	Total Liabilities
571.48M	547.30M	474.00M	415.08M	660.88M
	Stockholders Equity
831.62M	792.51M	771.92M	679.24M	427.55M
Cash Flow		Free Cash Flow
-14.32M	-86.90M	34.72M	107.97M	12.93M
	Operating Cash Flow
130.46M	122.21M	218.00M	217.20M	63.38M
	Investing Cash Flow
-71.73M	-151.73M	-229.40M	8.60M	-34.78M
	Financing Cash Flow
-25.86M	29.14M	-40.10M	-225.90M	-9.29M

Safe Bulkers Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3.88

Price Trends

50DMA

3.50

Positive

100DMA

3.56

Positive

200DMA

3.83

Positive

Market Momentum

MACD

0.09

Negative

RSI

65.81

Neutral

STOCH

85.71

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SB, the sentiment is Positive. The current price of 3.88 is above the 20-day moving average (MA) of 3.74, above the 50-day MA of 3.50, and above the 200-day MA of 3.83, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 65.81 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESEA	79 Outperform	$305.56M	2.69	35.83%	5.96%	12.43%	-1.63%
GNK	70 Neutral	$606.59M	13.53	5.02%	4.25%	-7.38%	1295.53%
SHIP	69 Neutral	$143.60M	5.47	10.11%	5.82%	17.53%	58.04%
SB	68 Neutral	$396.96M	5.80	9.82%	5.15%	-2.98%	-0.96%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
PANL	63 Neutral	$305.80M	13.65	4.05%	4.29%	13.10%	-54.75%
DSX	62 Neutral	$194.50M	24.42	2.79%	2.38%	-8.74%	-70.04%

* Industrials Sector Average

Performance Comparison

Safe Bulkers

3.88

-1.52

-28.15%

DSX

Diana Shipping

1.68

-1.05

-38.46%

ESEA

Euroseas

43.61

16.74

62.30%

GNK

Genco Shipping

14.12

-4.69

-24.93%

SHIP

Seanergy Maritime

6.87

-2.96

-30.11%

PANL

Pangaea Logistics Solutions

4.66

-2.43

-34.27%

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.