For those who appreciate value investing, NASDAQ:SBLK is a compelling option with its solid fundamentals.

Last update: Nov 11, 2024

STAR BULK CARRIERS CORP (NASDAQ:SBLK) has caught the attention of our stock screener as a great value stock. NASDAQ:SBLK excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Exploring NASDAQ:SBLK's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:SBLK has earned a 8 for valuation:

A Price/Earnings ratio of 7.39 indicates a rather cheap valuation of SBLK.
SBLK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.30.
Based on the Price/Forward Earnings ratio of 4.33, the valuation of SBLK can be described as very cheap.
Based on the Price/Forward Earnings ratio, SBLK is valued a bit cheaper than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.90, SBLK is valued rather cheaply.
Based on the Price/Free Cash Flow ratio, SBLK is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
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 37.59% in the coming years.

Exploring NASDAQ:SBLK's Profitability

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:

SBLK had an Average Return On Invested Capital over the past 3 years of 13.16%. This is significantly above the industry average of 7.76%.
The last Return On Invested Capital (6.63%) 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.
With a decent Profit Margin value of 24.06%, SBLK is doing good in the industry, outperforming 65.38% 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.

Health Analysis for NASDAQ:SBLK

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:SBLK has earned a 5 out of 10:

With a decent Debt to FCF ratio value of 4.03, SBLK is doing good in the industry, outperforming 73.08% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that SBLK is not too dependend on debt financing.

Assessing Growth Metrics 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.

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

Disclaimer

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.