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

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.

Valuation Analysis 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 8 out of 10:

• A Price/Earnings ratio of 10.05 indicates a reasonable valuation of SBLK.
• The average S&P500 Price/Earnings ratio is at 28.36. SBLK is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 4.98 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.19, which is the current average of the S&P500 Index.
• SBLK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SBLK is cheaper than 62.07% of the companies in the same industry.
• The 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 32.37% in the coming years.

How do we evaluate the Profitability for NASDAQ:SBLK?

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:

• The Return On Assets of SBLK (6.70%) is better than 62.07% of its industry peers.
• SBLK has a better Return On Equity (11.92%) than 62.07% of its industry peers.
• SBLK's Return On Invested Capital of 7.61% is fine compared to the rest 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 7.76%.
• The 3 year average ROIC (13.16%) for SBLK is well above the current ROIC(7.61%). The reason for the recent decline needs to be investigated.
• Looking at the Profit Margin, with a value of 20.57%, SBLK is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
• SBLK's Profit Margin has improved in the last couple of years.
• In the last couple of years the Operating Margin of SBLK has grown nicely.

A Closer Look at Health for NASDAQ:SBLK

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:SBLK scores a 5 out of 10:

• SBLK has a debt to FCF ratio of 3.30. This is a good value and a sign of high solvency as SBLK would need 3.30 years to pay back of all of its debts.
• SBLK has a Debt to FCF ratio of 3.30. This is in the better half of the industry: SBLK outperforms 75.86% of its industry peers.

Growth Assessment of NASDAQ:SBLK

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 4 for growth:

• The Earnings Per Share has been growing by 15.11% on average over the past years. This is quite good.
• SBLK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.40% yearly.
• 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 article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.