SAFE BULKERS INC (SB) Stock Fundamental Analysis
USA - NYSE:SB - MHY7388L1039 - Common Stock
4.37 USD
+0.09 (+2.1%)
4.48 USD
+0.11 (+2.52%)
SB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 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
In the past year SB was profitable.
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 has a Return On Assets of 3.24%. This is comparable to the rest of the industry: SB outperforms 57.14% of its industry peers.
The Return On Equity of SB (5.46%) is comparable to the rest of the industry.
The Return On Invested Capital of SB (4.61%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SB is significantly below the industry average of 18.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 5.46% | ||
| ROIC | 4.61% |
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 (16.37%) than 74.29% of its industry peers.
SB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 27.66%, SB is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
In the last couple of years the Operating Margin of SB has grown nicely.
Looking at the Gross Margin, with a value of 59.74%, SB is in the better half of the industry, outperforming 74.29% 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 | 27.66% | ||
| PM (TTM) | 16.37% | ||
| GM | 59.74% |
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.
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.
SB has a worse debt/assets ratio than last year.
2.2 Solvency
SB has an Altman-Z score of 1.42. This is a bad value and indicates that SB is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.42, SB perfoms like the industry average, outperforming 60.00% 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.
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/WACC0.52
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.91 indicates that SB should not have too much problems paying its short term obligations.
The Current ratio of SB (1.91) is better than 68.57% of its industry peers.
A Quick Ratio of 1.74 indicates that SB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, SB is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
| 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 -48.61%.
SB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.51% yearly.
The Revenue has decreased by -9.65% in the past 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)-48.61%
EPS 3Y-18.15%
EPS 5Y62.51%
EPS Q2Q%-94.12%
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-2.22%
Revenue growth 5Y9.23%
Sales Q2Q%-16.3%
3.2 Future
SB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.27% yearly.
Based on estimates for the next years, SB will show a small growth in Revenue. The Revenue will grow by 3.64% on average per year.
EPS Next Y-37.9%
EPS Next 2Y4.79%
EPS Next 3Y7.27%
EPS Next 5YN/A
Revenue Next Year-8.41%
Revenue Next 2Y1.74%
Revenue Next 3Y3.64%
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.
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
With a Price/Earnings ratio of 11.81, the valuation of SB can be described as very reasonable.
SB's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.57. SB is valued rather cheaply when compared to this.
SB is valuated cheaply with a Price/Forward Earnings ratio of 5.85.
Based on the Price/Forward Earnings ratio, SB is valued a bit cheaper than 68.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, SB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 5.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y4.79%
EPS Next 3Y7.27%
5. Dividend
5.1 Amount
SB has a Yearly Dividend Yield of 4.64%, which is a nice return.
Compared to an average industry Dividend Yield of 7.27, SB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, SB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
5.2 History
The dividend of SB is nicely growing with an annual growth rate of 19.59%!
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 2Y4.79%
EPS Next 3Y7.27%
4.37
+0.09 (+2.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners29.32%
Inst Owner Change-0.3%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap447.14M
Revenue(TTM)277.51M
Net Income(TTM)45.43M
Analysts88
Price Target4.95 (13.27%)
Short Float %3.27%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
Yearly Dividend0.27
Dividend Growth(5Y)19.59%
DPN/A
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.16%
Min EPS beat(2)-86.13%
Max EPS beat(2)61.81%
EPS beat(4)2
Avg EPS beat(4)-7.43%
Min EPS beat(4)-86.13%
Max EPS beat(4)61.81%
EPS beat(8)4
Avg EPS beat(8)-0.21%
EPS beat(12)6
Avg EPS beat(12)-0.61%
EPS beat(16)7
Avg EPS beat(16)-0.09%
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)-10.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 5.85 | ||
| P/S | 1.61 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.54 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)0.37
EY8.47%
EPS(NY)0.75
Fwd EY17.09%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.71
BVpS8.13
TBVpS8.13
PEG (NY)N/A
PEG (5Y)0.19
Graham Number8.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 5.46% | ||
| ROCE | 5.83% | ||
| ROIC | 4.61% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 5.09% | ||
| OM | 27.66% | ||
| PM (TTM) | 16.37% | ||
| GM | 59.74% | ||
| 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%
ROICexgc growth 3Y-22.15%
ROICexgc 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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.55 | ||
| 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
WACC8.85%
ROIC/WACC0.52
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-37.9%
EPS Next 2Y4.79%
EPS Next 3Y7.27%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-2.22%
Revenue growth 5Y9.23%
Sales Q2Q%-16.3%
Revenue Next Year-8.41%
Revenue Next 2Y1.74%
Revenue Next 3Y3.64%
Revenue Next 5YN/A
EBIT growth 1Y-31.84%
EBIT growth 3Y-14.63%
EBIT growth 5Y20.46%
EBIT Next Year14.82%
EBIT Next 3Y14.98%
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%