In a market where value is scarce, NASDAQ:SBLK offers a refreshing opportunity with its solid fundamentals.

Last update: Mar 21, 2024

Our stock screening tool has pinpointed STAR BULK CARRIERS CORP (NASDAQ:SBLK) as an undervalued stock. NASDAQ:SBLK maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Analysis for NASDAQ:SBLK

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:SBLK has achieved a 7 out of 10:

With a Price/Earnings ratio of 11.54, the valuation of SBLK can be described as very reasonable.
The average S&P500 Price/Earnings ratio is at 26.01. SBLK is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.13, which indicates a rather cheap valuation of SBLK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBLK indicates a somewhat cheap valuation: SBLK is cheaper than 75.86% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SBLK to the average of the S&P500 Index (22.43), we can say SBLK is valued rather cheaply.
Based on the Price/Free Cash Flow ratio, SBLK is valued a bit cheaper than 72.41% of the companies in the same industry.
SBLK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SBLK has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SBLK's earnings are expected to grow with 50.50% in the coming years.

How do we evaluate the Profitability for NASDAQ:SBLK?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:SBLK has achieved a 6:

SBLK has a Return On Assets of 6.93%. This is in the better half of the industry: SBLK outperforms 65.52% of its industry peers.
With a decent Return On Equity value of 12.12%, SBLK is doing good in the industry, outperforming 62.07% of the companies in the same industry.
SBLK has a better Return On Invested Capital (7.16%) than 68.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBLK is significantly above the industry average of 6.94%.
The last Return On Invested Capital (7.16%) for SBLK is well below the 3 year average (13.16%), which needs to be investigated, but indicates that SBLK had better years and this may not be a problem.
In the last couple of years the Profit Margin of SBLK has grown nicely.
In the last couple of years the Operating Margin of SBLK has grown nicely.

Health Assessment of NASDAQ:SBLK

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:SBLK has earned a 5 out of 10:

SBLK has a debt to FCF ratio of 2.99. This is a good value and a sign of high solvency as SBLK would need 2.99 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.99, SBLK belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
SBLK has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.

Understanding NASDAQ:SBLK's Growth Score

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:SBLK has earned a 5 for growth:

Measured over the past years, SBLK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.11% on average per year.
The Earnings Per Share is expected to grow by 50.50% on average over the next years. This is a very strong growth
SBLK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.41% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of SBLK for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.