SAFE BULKERS INC (SB) Stock Fundamental Analysis
NYSE:SB - New York Stock Exchange, Inc. - MHY7388L1039 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SB. SB was compared to 36 industry peers in the Marine Transportation industry. While SB is still in line with the averages on profitability rating, there are concerns on its financial health. SB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SB had positive earnings in the past year.
SB had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.08%, SB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SB has a Return On Equity (8.58%) which is in line with its industry peers.
SB's Return On Invested Capital of 5.65% is in line compared to the rest of the industry. SB outperforms 55.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SB is in line with the industry average of 9.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 8.58% | ||
| ROIC | 5.65% |
ROA(3y)8.23%
ROA(5y)7.47%
ROE(3y)13.56%
ROE(5y)11.82%
ROIC(3y)8.37%
ROIC(5y)8.01%
1.3 Margins
SB has a better Profit Margin (24.57%) than 75.00% of its industry peers.
SB's Profit Margin has improved in the last couple of years.
SB's Operating Margin of 32.42% is fine compared to the rest of the industry. SB outperforms 77.78% of its industry peers.
In the last couple of years the Operating Margin of SB has grown nicely.
SB has a better Gross Margin (62.37%) than 75.00% of its industry peers.
In the last couple of years the Gross Margin of SB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.42% | ||
| PM (TTM) | 24.57% | ||
| GM | 62.37% |
OM growth 3Y-12.7%
OM growth 5Y10.28%
PM growth 3Y-16.39%
PM growth 5Y67.95%
GM growth 3Y-1.81%
GM growth 5Y1.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SB is destroying value.
Compared to 1 year ago, SB has less shares outstanding
Compared to 5 years ago, SB has more shares outstanding
Compared to 1 year ago, SB has a worse debt to assets ratio.
2.2 Solvency
SB has an Altman-Z score of 1.44. This is a bad value and indicates that SB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.44, SB is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
SB has a Debt/Equity ratio of 0.58. This is a neutral value indicating SB is somewhat dependend on debt financing.
The Debt to Equity ratio of SB (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.67
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.91 indicates that SB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.91, SB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.74 indicates that SB should not have too much problems paying its short term obligations.
SB's Quick ratio of 1.74 is fine compared to the rest of the industry. SB outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The earnings per share for SB have decreased strongly by -48.61% in the last year.
The Earnings Per Share has been growing by 62.51% on average over the past years. This is a very strong growth
SB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.17%.
Measured over the past years, SB shows a quite strong growth in Revenue. The Revenue has been growing by 9.23% on average per year.
EPS 1Y (TTM)-48.61%
EPS 3Y-18.15%
EPS 5Y62.51%
EPS Q2Q%-94.12%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y-2.22%
Revenue growth 5Y9.23%
Sales Q2Q%-16.3%
3.2 Future
The Earnings Per Share is expected to grow by 12.70% on average over the next years. This is quite good.
SB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
EPS Next Y-19.72%
EPS Next 2Y12.8%
EPS Next 3Y12.7%
EPS Next 5YN/A
Revenue Next Year-7.06%
Revenue Next 2Y2.67%
Revenue Next 3Y4.14%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.16, the valuation of SB can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as SB.
Compared to an average S&P500 Price/Earnings ratio of 27.03, SB is valued rather cheaply.
SB is valuated cheaply with a Price/Forward Earnings ratio of 4.77.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SB indicates a somewhat cheap valuation: SB is cheaper than 75.00% of the companies listed in the same industry.
SB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 4.77 |
4.2 Price Multiples
SB's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
SB has a very decent profitability rating, which may justify a higher PE ratio.
SB's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y12.8%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.81%, SB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.13, SB pays a better dividend. On top of this SB pays more dividend than 86.11% of the companies listed in the same industry.
SB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.81% |
5.2 History
The dividend of SB is nicely growing with an annual growth rate of 19.59%!
SB has paid a dividend for at least 10 years, which is a reliable track record.
SB has decreased its dividend recently.
Dividend Growth(5Y)19.59%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The dividend of SB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y12.8%
EPS Next 3Y12.7%
4.13
+0.05 (+1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners29.84%
Inst Owner Change1.71%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap422.54M
Analysts88
Price Target5.1 (23.49%)
Short Float %2.66%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.81% |
Yearly Dividend0.27
Dividend Growth(5Y)19.59%
DPN/A
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.12%
Min EPS beat(2)0.44%
Max EPS beat(2)61.81%
EPS beat(4)2
Avg EPS beat(4)10.44%
Min EPS beat(4)-14.63%
Max EPS beat(4)61.81%
EPS beat(8)4
Avg EPS beat(8)9.71%
EPS beat(12)7
Avg EPS beat(12)8.81%
EPS beat(16)8
Avg EPS beat(16)7.62%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-7.41%
PT rev (3m)-8.54%
EPS NQ rev (1m)-22.22%
EPS NQ rev (3m)-46.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)-3.24%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 4.77 | ||
| P/S | 1.46 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.51 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)0.37
EY8.96%
EPS(NY)0.87
Fwd EY20.95%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.84
BVpS8.13
TBVpS8.13
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 8.58% | ||
| ROCE | 7.15% | ||
| ROIC | 5.65% | ||
| ROICexc | 6.24% | ||
| ROICexgc | 6.24% | ||
| OM | 32.42% | ||
| PM (TTM) | 24.57% | ||
| GM | 62.37% | ||
| FCFM | N/A |
ROA(3y)8.23%
ROA(5y)7.47%
ROE(3y)13.56%
ROE(5y)11.82%
ROIC(3y)8.37%
ROIC(5y)8.01%
ROICexc(3y)9.14%
ROICexc(5y)8.81%
ROICexgc(3y)9.14%
ROICexgc(5y)8.81%
ROCE(3y)10.6%
ROCE(5y)10.14%
ROICexcg growth 3Y-22.15%
ROICexcg growth 5Y14.43%
ROICexc growth 3Y-22.15%
ROICexc growth 5Y14.43%
OM growth 3Y-12.7%
OM growth 5Y10.28%
PM growth 3Y-16.39%
PM growth 5Y67.95%
GM growth 3Y-1.81%
GM growth 5Y1.34%
F-ScoreN/A
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 1.44 |
F-ScoreN/A
WACC8.49%
ROIC/WACC0.67
Cap/Depr(3y)335.15%
Cap/Depr(5y)261.38%
Cap/Sales(3y)57.66%
Cap/Sales(5y)46.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-48.61%
EPS 3Y-18.15%
EPS 5Y62.51%
EPS Q2Q%-94.12%
EPS Next Y-19.72%
EPS Next 2Y12.8%
EPS Next 3Y12.7%
EPS Next 5YN/A
Revenue 1Y (TTM)8.17%
Revenue growth 3Y-2.22%
Revenue growth 5Y9.23%
Sales Q2Q%-16.3%
Revenue Next Year-7.06%
Revenue Next 2Y2.67%
Revenue Next 3Y4.14%
Revenue Next 5YN/A
EBIT growth 1Y-11.47%
EBIT growth 3Y-14.63%
EBIT growth 5Y20.46%
EBIT Next Year21.98%
EBIT Next 3Y10.86%
EBIT Next 5YN/A
FCF growth 1Y83.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.75%
OCF growth 3Y-15.63%
OCF growth 5Y17.48%