NASDAQ:SBLK stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jul 29, 2024

Uncover the hidden value in STAR BULK CARRIERS CORP (NASDAQ:SBLK) as our stock screening tool recommends it as an undervalued choice. NASDAQ:SBLK maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Assessing Valuation for NASDAQ:SBLK

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:SBLK, the assigned 7 reflects its valuation:

SBLK is valuated reasonably with a Price/Earnings ratio of 9.50.
SBLK is valuated cheaply when we compare the Price/Earnings ratio to 24.43, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.70 indicates a rather cheap valuation of SBLK.
79.31% of the companies in the same industry are more expensive than SBLK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.63, SBLK is valued rather cheaply.
62.07% of the companies in the same industry are more expensive than SBLK, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SBLK 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.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:SBLK was assigned a score of 7 for profitability:

SBLK has a better Return On Assets (6.70%) than 62.07% of its industry peers.
The Return On Equity of SBLK (11.92%) is better than 62.07% of its industry peers.
SBLK has a better Return On Invested Capital (7.61%) than 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 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.
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.
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.

Assessing Health Metrics for NASDAQ:SBLK

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:

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.
Looking at the Debt to FCF ratio, with a value of 3.30, SBLK is in the better half of the industry, outperforming 75.86% of the companies in the same industry.

Understanding NASDAQ:SBLK's Growth

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:

SBLK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.11% yearly.
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.

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

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

Keep in mind

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.