SAFE BULKERS INC (SB) Stock Fundamental Analysis
NYSE:SB - New York Stock Exchange, Inc. - MHY7388L1039 - Common Stock - Currency: USD
Overall SB gets a fundamental rating of 4 out of 10. We evaluated SB against 32 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SB had positive earnings in the past year.
Of the past 5 years SB 4 years were profitable.
Each year in the past 5 years SB had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.08%, SB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
SB has a Return On Equity (8.58%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.65%, SB is in line with its industry, outperforming 53.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SB is in line with the industry average of 7.64%.
| 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
With a decent Profit Margin value of 24.57%, SB is doing good in the industry, outperforming 68.75% 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 32.42%. This is in the better half of the industry: SB outperforms 71.88% of its industry peers.
In the last couple of years the Operating Margin of SB has grown nicely.
With a decent Gross Margin value of 62.37%, SB is doing good in the industry, outperforming 71.88% of the companies in the same industry.
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.
The number of shares outstanding for SB has been reduced compared to 1 year ago.
SB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SB is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that SB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SB (1.42) is better than 65.63% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that SB is somewhat dependend on debt financing.
SB has a Debt to Equity ratio (0.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC0.63
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.91 indicates that SB should not have too much problems paying its short term obligations.
SB has a better Current ratio (1.91) than 75.00% of its industry peers.
A Quick Ratio of 1.74 indicates that SB should not have too much problems paying its short term obligations.
SB has a Quick ratio of 1.74. This is in the better half of the industry: SB outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
SB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.90%.
The Earnings Per Share has been growing by 62.51% on average over the past years. This is a very strong growth
Looking at the last year, SB shows a decrease in Revenue. The Revenue has decreased by -2.98% in the last year.
The Revenue has been growing by 9.23% on average over the past years. This is quite good.
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
Based on estimates for the next years, SB will show a decrease in Earnings Per Share. The EPS will decrease by -1.55% on average per year.
The Revenue is expected to grow by 4.23% on average over the next years.
EPS Next Y-24.26%
EPS Next 2Y11.11%
EPS Next 3Y-1.55%
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 EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 7.32 indicates a rather cheap valuation of SB.
Compared to the rest of the industry, the Price/Earnings ratio of SB indicates a somewhat cheap valuation: SB is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, SB is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.62, the valuation of SB can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SB indicates a somewhat cheap valuation: SB is cheaper than 71.88% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. SB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 4.62 |
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 | 5.29 |
4.3 Compensation for Growth
SB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y11.11%
EPS Next 3Y-1.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.18%, SB is a good candidate for dividend investing.
SB's Dividend Yield is a higher than the industry average which is at 8.23.
SB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
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.
The dividend of SB decreased recently.
Dividend Growth(5Y)19.59%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y11.11%
EPS Next 3Y-1.55%
3.88
+0.03 (+0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners28.12%
Inst Owner Change3.72%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap396.96M
Analysts88
Price Target5.51 (42.01%)
Short Float %3.98%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
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)5.88%
PT rev (3m)-1.22%
EPS NQ rev (1m)-30.77%
EPS NQ rev (3m)-30.77%
EPS NY rev (1m)-7.41%
EPS NY rev (3m)-5.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-5.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 4.62 | ||
| P/S | 1.37 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.48 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | 5.29 |
EPS(TTM)0.53
EY13.66%
EPS(NY)0.84
Fwd EY21.64%
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 | 1.42 |
F-ScoreN/A
WACC8.92%
ROIC/WACC0.63
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-24.26%
EPS Next 2Y11.11%
EPS Next 3Y-1.55%
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%