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. SB has a medium profitability rating, but doesn't score so well on its financial health evaluation. SB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SB was profitable.
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
The Return On Assets of SB (5.08%) is better than 63.89% of its industry peers.
The Return On Equity of SB (8.58%) is better than 61.11% of its industry peers.
SB has a Return On Invested Capital (5.65%) which is in line with 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 9.15%.
| 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 72.22% of its industry peers.
SB's Profit Margin has improved in the last couple of years.
SB has a better Operating Margin (32.42%) than 75.00% of its industry peers.
SB's Operating Margin has improved in the last couple of years.
The Gross Margin of SB (62.37%) is better 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SB is destroying value.
The number of shares outstanding for SB has been reduced compared to 1 year ago.
The number of shares outstanding for SB has been increased compared to 5 years ago.
SB has a worse debt/assets ratio than last year.
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 66.67% 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.
With a Debt to Equity ratio value of 0.58, SB perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.66
WACC8.54%
2.3 Liquidity
SB has a Current Ratio of 1.91. This is a normal value and indicates that SB is financially healthy and should not expect problems in meeting its short term obligations.
SB's Current ratio of 1.91 is fine compared to the rest of the industry. SB outperforms 77.78% of its industry peers.
SB has a Quick Ratio of 1.74. This is a normal value and indicates that SB is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.74, SB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| 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 -20.90% in the last year.
Measured over the past years, SB shows a very strong growth in Earnings Per Share. The EPS has been growing by 62.51% on average per year.
Looking at the last year, SB shows a decrease in Revenue. The Revenue has decreased by -2.98% in the last year.
SB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.23% yearly.
EPS 1Y (TTM)-20.9%
EPS 3Y-18.15%
EPS 5Y62.51%
EPS Q2Q%-75%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-2.22%
Revenue growth 5Y9.23%
Sales Q2Q%-26.37%
3.2 Future
The Earnings Per Share is expected to grow by 12.70% on average over the next years. This is quite good.
Based on estimates for the next years, SB will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
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 3Y4.23%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.70 indicates a rather cheap valuation of SB.
SB's Price/Earnings is on the same level as the industry average.
SB is valuated cheaply when we compare the Price/Earnings ratio to 27.52, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.72, the valuation of SB can be described as very cheap.
Based on the Price/Forward Earnings ratio, SB is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, SB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SB is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.46 |
4.3 Compensation for Growth
The decent profitability rating of SB may justify a higher PE ratio.
A more expensive valuation may be justified as SB's earnings are expected to grow with 12.70% in the coming years.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y12.8%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
SB has a Yearly Dividend Yield of 4.94%, which is a nice return.
Compared to an average industry Dividend Yield of 7.47, SB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, SB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
5.2 History
On average, the dividend of SB grows each year by 19.59%, which is quite nice.
SB has been paying a dividend for at least 10 years, so it has 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
SB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y12.8%
EPS Next 3Y12.7%
4.08
-0.03 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners29.84%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap417.42M
Analysts88
Price Target5.51 (35.05%)
Short Float %3.64%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
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)0%
PT rev (3m)-1.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.77%
EPS NY rev (1m)6%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 4.72 | ||
| P/S | 1.44 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.5 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 5.46 |
EPS(TTM)0.53
EY12.99%
EPS(NY)0.87
Fwd EY21.21%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.84
BVpS8.13
TBVpS8.13
PEG (NY)N/A
PEG (5Y)0.12
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
WACC8.54%
ROIC/WACC0.66
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)-20.9%
EPS 3Y-18.15%
EPS 5Y62.51%
EPS Q2Q%-75%
EPS Next Y-19.72%
EPS Next 2Y12.8%
EPS Next 3Y12.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-2.22%
Revenue growth 5Y9.23%
Sales Q2Q%-26.37%
Revenue Next Year-7.06%
Revenue Next 2Y2.67%
Revenue Next 3Y4.23%
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%