NASDAQ:SBLK is an undervalued gem with solid fundamentals.

Last update: Sep 10, 2024

Our stock screening tool has identified STAR BULK CARRIERS CORP (NASDAQ:SBLK) as an undervalued gem with strong fundamentals. NASDAQ:SBLK boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

How We Gauge Valuation for NASDAQ:SBLK

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:SBLK was assigned a score of 8 for valuation:

The Price/Earnings ratio is 7.53, which indicates a rather cheap valuation of SBLK.
SBLK is valuated cheaply when we compare the Price/Earnings ratio to 29.93, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.15, the valuation of SBLK can be described as very cheap.
70.37% of the companies in the same industry are more expensive than SBLK, based on the Price/Forward Earnings ratio.
SBLK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.62.
Based on the Price/Free Cash Flow ratio, SBLK is valued a bit cheaper than the industry average as 66.67% 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.
SBLK's earnings are expected to grow with 37.70% in the coming years. This may justify a more expensive valuation.

Profitability Insights: NASDAQ:SBLK

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:SBLK, the assigned 6 is a significant indicator of profitability:

Measured over the past 3 years, the Average Return On Invested Capital for SBLK is significantly above the industry average of 7.80%.
The 3 year average ROIC (13.16%) for SBLK is well above the current ROIC(6.63%). The reason for the recent decline needs to be investigated.
Looking at the Profit Margin, with a value of 24.06%, SBLK is in the better half of the industry, outperforming 62.96% 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.

Understanding NASDAQ:SBLK's Health Score

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:SBLK has earned a 5 out of 10:

SBLK's Debt to FCF ratio of 4.03 is fine compared to the rest of the industry. SBLK outperforms 77.78% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that SBLK is not too dependend on debt financing.

Growth Analysis 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:

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.
The Revenue is expected to grow by 9.01% on average over the next years. This is quite good.

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

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

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.