Investors should take notice of NASDAQ:SBLK—it offers a great deal for the fundamentals it presents.

Last update: May 22, 2024

STAR BULK CARRIERS CORP (NASDAQ:SBLK) has caught the attention of our stock screener as a great value stock. NASDAQ:SBLK excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Assessment of NASDAQ:SBLK

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:SBLK scores a 7 out of 10:

The average S&P500 Price/Earnings ratio is at 28.52. SBLK is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.20, which indicates a rather cheap valuation of SBLK.
Based on the Price/Forward Earnings ratio, SBLK is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
SBLK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.13.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SBLK indicates a somewhat cheap valuation: SBLK is cheaper than 68.97% of the companies listed 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.

Understanding NASDAQ:SBLK's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:SBLK, the assigned 7 is noteworthy for profitability:

SBLK has a better Return On Assets (5.73%) than 62.07% of its industry peers.
SBLK's Return On Equity of 10.46% is fine compared to the rest of the industry. SBLK outperforms 65.52% of its industry peers.
With a decent Return On Invested Capital value of 7.03%, SBLK is doing good in the industry, outperforming 65.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBLK is significantly above the industry average of 7.39%.
The 3 year average ROIC (13.16%) for SBLK is well above the current ROIC(7.03%). The reason for the recent decline needs to be investigated.
SBLK's Profit Margin has improved in the last couple of years.
SBLK's Operating Margin has improved in the last couple of years.

Analyzing Health Metrics

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:SBLK, the assigned 5 reflects its health status:

SBLK has a debt to FCF ratio of 3.89. This is a good value and a sign of high solvency as SBLK would need 3.89 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.89, SBLK is in the better half of the industry, outperforming 79.31% of the companies in the same industry.

A Closer Look at Growth for NASDAQ:SBLK

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:SBLK was assigned a score of 4 for growth:

SBLK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.11% yearly.
Based on estimates for the next years, SBLK will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.40% on average per year.
The Revenue is expected to grow by 9.01% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of SBLK contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.