SAFE BULKERS INC (SB)
MHY7388L1039 - Common Stock
Overall SB gets a fundamental rating of 5 out of 10. We evaluated SB against 29 industry peers in the Marine Transportation industry. SB scores excellent on profitability, but there are some minor 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 a positive operating cash flow in the past year.
SB had positive earnings in 4 of the past 5 years.
In the past 5 years SB always reported a positive cash flow from operatings.
1.2 Ratios
SB's Return On Assets of 5.18% is in line compared to the rest of the industry. SB outperforms 55.17% of its industry peers.
SB's Return On Equity of 8.75% is in line compared to the rest of the industry. SB outperforms 55.17% of its industry peers.
SB has a Return On Invested Capital (5.77%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SB is above the industry average of 7.78%.
The 3 year average ROIC (10.84%) for SB is well above the current ROIC(5.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 8.75% | ||
| ROIC | 5.77% |
ROA(3y)11.08%
ROA(5y)6.27%
ROE(3y)18.01%
ROE(5y)9.85%
ROIC(3y)10.84%
ROIC(5y)7.35%
1.3 Margins
With a decent Profit Margin value of 24.38%, SB is doing good in the industry, outperforming 65.52% of the companies in the same industry.
In the last couple of years the Profit Margin of SB has grown nicely.
SB has a Operating Margin of 32.97%. This is in the better half of the industry: SB outperforms 65.52% of its industry peers.
SB's Operating Margin has improved in the last couple of years.
SB's Gross Margin of 61.02% is fine compared to the rest of the industry. SB outperforms 72.41% of its industry peers.
SB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.97% | ||
| PM (TTM) | 24.38% | ||
| GM | 61.02% |
OM growth 3Y83.94%
OM growth 5Y2.65%
PM growth 3YN/A
PM growth 5Y23.65%
GM growth 3Y8.39%
GM growth 5Y-0.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SB is still creating some value.
SB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SB has been increased compared to 5 years ago.
Compared to 1 year ago, SB has a worse debt to assets ratio.
2.2 Solvency
SB has an Altman-Z score of 1.59. 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 1.59, SB is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that SB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, SB is doing worse than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.59 |
ROIC/WACC0.84
WACC6.83%
2.3 Liquidity
A Current Ratio of 2.63 indicates that SB has no problem at all paying its short term obligations.
The Current ratio of SB (2.63) is better than 65.52% of its industry peers.
A Quick Ratio of 2.33 indicates that SB has no problem at all paying its short term obligations.
The Quick ratio of SB (2.33) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
SB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.82%.
Measured over the past years, SB shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.38% on average per year.
Looking at the last year, SB shows a very negative growth in Revenue. The Revenue has decreased by -18.68% in the last year.
Measured over the past years, SB shows a quite strong growth in Revenue. The Revenue has been growing by 8.04% on average per year.
EPS 1Y (TTM)-56.82%
EPS 3YN/A
EPS 5Y27.38%
EPS growth Q2Q-20.69%
Revenue 1Y (TTM)-18.68%
Revenue growth 3Y12.79%
Revenue growth 5Y8.04%
Revenue growth Q2Q-5.04%
3.2 Future
Based on estimates for the next years, SB will show a small growth in Earnings Per Share. The EPS will grow by 2.04% on average per year.
Based on estimates for the next years, SB will show a small growth in Revenue. The Revenue will grow by 0.72% on average per year.
EPS Next Y38.24%
EPS Next 2Y16.42%
EPS Next 3Y39.12%
EPS Next 5Y2.04%
Revenue Next Year6.98%
Revenue Next 2Y2.5%
Revenue Next 3Y12.94%
Revenue Next 5Y0.72%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
A Price/Earnings ratio of 9.11 indicates a reasonable valuation of SB.
SB's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.73. SB is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.59, which indicates a rather cheap valuation of SB.
SB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SB is cheaper than 68.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.41, SB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
SB's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
SB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SB's earnings are expected to grow with 39.12% in the coming years.
PEG (NY)0.24
PEG (5Y)0.33
EPS Next 2Y16.42%
EPS Next 3Y39.12%
5. Dividend
5.1 Amount
SB has a Yearly Dividend Yield of 3.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.76, SB pays a bit more dividend than its industry peers.
SB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
On average, the dividend of SB grows each year by 18.95%, which is quite nice.
SB has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)18.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
44.24% of the earnings are spent on dividend by SB. This is a bit on the high side, but may be sustainable.
SB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.24%
EPS Next 2Y16.42%
EPS Next 3Y39.12%
SAFE BULKERS INC
NYSE:SB (5/3/2024, 7:17:12 PM)
After market: 5.1 -0.09 (-1.73%)5.19
+0.07 (+1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap554.08M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 6.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.24
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 8.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.97% | ||
| PM (TTM) | 24.38% | ||
| GM | 61.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-56.82%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y38.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.68%
Revenue growth 3Y12.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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OCF growth 1Y
OCF growth 3Y
OCF growth 5Y