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

Last update: Jun 13, 2024

Our stock screener has spotted STAR BULK CARRIERS CORP (NASDAQ:SBLK) as an undervalued stock with solid fundamentals. NASDAQ:SBLK shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

A Closer Look at Valuation for 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:

SBLK is valuated reasonably with a Price/Earnings ratio of 10.41.
SBLK is valuated cheaply when we compare the Price/Earnings ratio to 28.40, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.45 indicates a rather cheap valuation of SBLK.
75.86% of the companies in the same industry are more expensive than SBLK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SBLK to the average of the S&P500 Index (20.03), we can say SBLK is valued rather cheaply.
Based on the Price/Free Cash Flow ratio, SBLK is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
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 41.49% in the coming years.

Profitability Examination for NASDAQ:SBLK

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:SBLK has earned a 6 out of 10:

With a decent Return On Equity value of 11.92%, SBLK is doing good in the industry, outperforming 62.07% of the companies in the same industry.
SBLK has a Return On Invested Capital of 7.61%. This is in the better half of the industry: SBLK outperforms 72.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBLK is significantly above the industry average of 7.74%.
The last Return On Invested Capital (7.61%) 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.
SBLK's Operating Margin has improved in the last couple of years.

Looking at the Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:SBLK was assigned a score of 5 for health:

The Debt to FCF ratio of SBLK is 3.30, which is a good value as it means it would take SBLK, 3.30 years of fcf income to pay off all of its debts.
SBLK has a better Debt to FCF ratio (3.30) than 75.86% of its industry peers.

Evaluating Growth: NASDAQ:SBLK

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:SBLK has achieved a 4 out of 10:

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 14.40% on average over the next years. This is quite good.
SBLK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.01% yearly.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of SBLK

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.