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Pacific Basin Shipping Ltd (PCFBY)
:PCFBY
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Pacific Basin Shipping
(OTC:PCFBY)
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Rating:71Outperform
Price Target:
$7.00
▲(11.64% Upside)
Pacific Basin Shipping's overall score reflects a stable financial position and positive technical indicators, which are the most significant factors. The valuation is reasonable, and while the earnings call highlights some challenges, the company's strategic initiatives and market recovery potential provide a balanced outlook.
Pacific Basin Shipping (PCFBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.60B
Dividend Yield3.12%
Average Volume (3M)16.00
Price to Earnings (P/E)16.2
Beta (1Y)0.18
Revenue Growth-4.67%
EPS Growth23.16%
CountryUS
Employees5,003
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.10
Shares Outstanding260,418,180
10 Day Avg. Volume50
30 Day Avg. Volume16
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)0.63
Price to Sales (P/S)0.45
P/FCF Ratio6.41
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit9.86
Enterprise Value/Ebitda4.32
Forecast
1Y Price Target
$7.00Price Target Upside11.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Pacific Basin Shipping Business Overview & Revenue Model
Company DescriptionPacific Basin Shipping Limited, an investment holding company, provides dry bulk shipping services worldwide. It also offers shipping consulting, ocean shipping, crewing, secretarial, and agency and ship management services; and engages in the vessel owning and chartering, and convertible bonds issuing activities. As of February 28, 2022, the company had a fleet of 130 Handysize vessels, and 124 Supramax vessels. Pacific Basin Shipping Limited was founded in 1987 and is headquartered in Wong Chuk Hang, Hong Kong.
How the Company Makes MoneyPacific Basin Shipping generates revenue primarily through the chartering of its vessels. The company operates on a combination of time charters and spot charters, allowing it to adapt to market conditions and optimize utilization of its fleet. Time charters involve leasing vessels for a fixed period, providing stable and predictable income, while spot charters are short-term contracts that capitalize on fluctuating market rates. Additionally, Pacific Basin benefits from strategic partnerships with major commodity traders and industrial companies, which help secure long-term contracts and enhance its market positioning. The company's focus on operational efficiency and fleet management also contributes to cost savings and improved profitability.
Pacific Basin Shipping Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with notable improvements in liquidity, freight rate recovery, and operating performance. However, these are balanced by significant challenges, including a decline in revenue and net profit, market challenges in China, and regulatory concerns with the USTR 301 plan. The insights indicate cautious optimism but underline ongoing challenges.Q2-2025 Updates
Positive Updates
Increased Liquidity
Net cash increased to $66 million, and available committed liquidity stands at $550 million. A new 7-year revolving credit facility of $250 million was signed in July.
Dividend and Share Buyback
The Board declared an interim dividend of HKD 0.16 per share, amounting to $10.4 million. Pacific Basin has distributed 153% of net profit for the first half of 2025 through dividends and share buybacks.
Freight Rate Recovery
Spot freight rates for Handysize and Supramax vessels increased by 23% and 50%, respectively, since the start of the year.
Operating Activity Outperformance
Outperformance over average spot market rates by $2,320 (27%) per day for Handysize and $3,480 (40%) per day for Supramax.
Reduced Finance Costs
Finance costs declined due to lower borrowing levels and reduced interest rates.
Negative Updates
Decline in Top Line Revenue
Top line decreased by 21% due to reductions in Handysize and Supramax freight rates, which were down 21% and 34%, respectively.
Decrease in Net Profit
Net profit fell 56% to $26 million despite additional gains from vessel disposals.
Market Challenges in China
Global dry bulk loading volumes declined by 3% primarily due to reduced Chinese imports of major commodities following heavy stockpiling in 2024.
Increased Operating Expenses
Operating expenses rose slightly due to increased manning costs and higher depreciation.
USTR Regulation Concerns
Potential significant impact on financial performance due to proposed USTR 301 plan which may introduce extra port charges on Chinese-owned and operated vessels.
Company Guidance
During the Pacific Basin 2025 Interim Results Announcement Conference Call, CEO Martin Fruergaard and CFO Jimmy Ng provided comprehensive guidance on the company's financial performance and strategic outlook. In the first half of 2025, the company reported an EBITDA of USD 122 million, an underlying profit of USD 22 million, and a net profit of USD 26 million, translating to a 3% annualized return on equity and basic earnings per share of HKD 0.039. The Board declared an interim dividend of HKD 0.16 per share, equating to USD 10.4 million or 50% of net profit, excluding vessel disposal gains. Pacific Basin's liquidity was bolstered by a new USD 250 million revolving credit facility, enhancing its financial strength and growth strategy. Despite a challenging freight market with spot rates for Handysize and Supramax vessels dropping by 21% and 34% year-on-year, the company maintained a strong operational performance, outperforming market indices by 27% and 40% for Handysize and Supramax, respectively. Looking ahead, the company remains optimistic about market recovery, driven by factors such as increased soybean exports from Brazil and potential economic stimuli in China, while maintaining a strategic focus on fleet renewal and growth.Pacific Basin Shipping Financial Statement Overview
Summary
Pacific Basin Shipping has a stable financial position with strong cash flows and a solid balance sheet. The income statement reflects some operational challenges, particularly in EBIT performance. However, effective cash management and a declining debt trend position the company well for future growth.Income Statement
Pacific Basin Shipping has shown a recovery in revenue from 2020 to 2024. The gross profit margin improved slightly over the years, reflecting some stability in operations. However, recent EBIT margins are concerning, as EBIT was zero for 2024, indicating potential operational challenges. Net profit margin has improved, but the fluctuating revenue growth rate suggests inconsistent market conditions.65
Positive
Balance Sheet
The balance sheet shows a strengthening position with increasing stockholders' equity and a reduction in total debt over the years. The debt-to-equity ratio has improved, indicating reduced financial risk. The equity ratio remains solid, reflecting financial stability. Overall, the balance sheet suggests a well-managed capital structure but highlights potential risk if debt levels rise again.75
Positive
Cash Flow
Operating cash flow remains strong and consistent, exceeding net income, which indicates effective internal cash generation. Free cash flow has shown growth, although capital expenditures have been significant, reflecting ongoing investments. The cash flow position is robust, but attention is needed to ensure that high investment levels yield expected returns.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.58B | 2.30B | 3.28B | 2.97B | 1.47B |
| Gross Profit | 135.24M | 130.95M | 732.08M | 739.34M | 36.87M |
| EBITDA | 357.43M | 349.99M | 924.66M | 1.03B | -8.74M |
| Net Income | 131.70M | 109.38M | 701.86M | 844.81M | -208.23M |
Balance Sheet | |||||
| Total Assets | 2.41B | 2.43B | 2.65B | 2.75B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 282.04M | 261.40M | 443.82M | 459.67M | 234.77M |
| Total Debt | 344.36M | 366.25M | 471.90M | 648.59M | 940.72M |
| Total Liabilities | 587.39M | 634.53M | 741.33M | 914.21M | 1.13B |
| Stockholders Equity | 1.83B | 1.80B | 1.91B | 1.83B | 1.06B |
Cash Flow | |||||
| Free Cash Flow | 180.93M | 101.33M | 850.60M | 625.94M | 116.19M |
| Operating Cash Flow | 309.33M | 353.40M | 935.32M | 850.42M | 219.61M |
| Investing Cash Flow | -87.40M | -61.17M | 63.18M | -334.00M | -92.11M |
| Financing Cash Flow | -214.40M | -389.73M | -949.13M | -433.03M | -101.57M |
Pacific Basin Shipping Technical Analysis
Positive
6.27
Price Trends
5.98
Positive
5.56
Positive
4.86
Positive
Market Momentum
0.11
Positive
54.50
Neutral
16.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCFBY, the sentiment is Positive. The current price of 6.27 is below the 20-day moving average (MA) of 6.31, above the 50-day MA of 5.98, and above the 200-day MA of 4.86, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 16.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCFBY.
Pacific Basin Shipping Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.41B | 5.04 | 14.61% | 3.91% | -7.24% | -16.39% | |
81 Outperform | $1.07B | 2.84 | 26.40% | 6.67% | 4.43% | 17.82% | |
79 Outperform | $1.29B | 4.47 | 9.89% | 0.45% | -0.47% | -22.23% | |
71 Outperform | $1.60B | 16.20 | 5.53% | 3.12% | -4.67% | 23.16% | |
69 Neutral | $1.62B | 3.66 | 13.38% | 3.89% | 5.63% | -17.54% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.65B | 0.84 | 59.06% | 56.44% | 43.57% | ― |
* Industrials Sector Average
PCFBY
Pacific Basin Shipping
6.27
0.37
6.27%
CMRE
Costamare
11.51
1.16
11.21%
DAC
Danaos
87.35
4.72
5.71%
GSL
Global Ship Lease
29.22
5.83
24.93%
NMM
Navios Maritime Partners
44.79
-17.42
-28.00%
ZIM
ZIM
13.50
0.79
6.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.