NASDAQ:SBLK is probably undervalued for the fundamentals it is displaying.

Last update: Oct 3, 2024

Our stock screener has singled out STAR BULK CARRIERS CORP (NASDAQ:SBLK) as a stellar value proposition. NASDAQ:SBLK not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Deciphering NASDAQ:SBLK's Valuation Rating

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:

The Price/Earnings ratio is 8.42, which indicates a very decent valuation of SBLK.
SBLK is valuated cheaply when we compare the Price/Earnings ratio to 31.01, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.64, the valuation of SBLK can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBLK indicates a somewhat cheap valuation: SBLK is cheaper than 74.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SBLK to the average of the S&P500 Index (22.36), we can say SBLK is valued rather cheaply.
SBLK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SBLK is cheaper than 70.37% 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.
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 37.70% in the coming years.

How do we evaluate the Profitability for NASDAQ:SBLK?

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 6 for profitability:

The Average Return On Invested Capital over the past 3 years for SBLK is significantly above the industry average of 7.54%.
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.
The Profit Margin of SBLK (24.06%) is better than 62.96% of its industry peers.
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.

Health Examination 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:

SBLK has a better Debt to FCF ratio (4.03) than 77.78% of its industry peers.
SBLK has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.

A Closer Look at Growth for NASDAQ:SBLK

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:SBLK scores a 4 out of 10:

The Earnings Per Share has been growing by 15.11% on average over the past years. This is quite good.
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.

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

Check the latest full fundamental report of SBLK for a complete fundamental analysis.

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.