Pacific Basin Shipping (PCFBY) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: 3.09%
• Average Volume (3M): 16.00
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.15
• Revenue Growth: -4.54%
• EPS Growth: 23.39%
• Country: US
• Employees: 5,003
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 0.10
• Shares Outstanding: 260,418,180
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 16
• PEG Ratio: 0.44
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 6.41
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 12.69
• Enterprise Value/Ebitda: 4.82
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $7.50 ▲(18.67% Upside)

Pacific Basin Shipping's overall stock score of 71 reflects a stable financial position with strong cash flows and a solid balance sheet, despite operational challenges. Positive technical indicators and reasonable valuation metrics support the score, while the earnings call presents a mixed outlook with cautious optimism.

Positive Factors

Strong Cash Flow

Robust cash flow exceeding net income indicates effective cash generation, supporting long-term operational stability and growth potential.

Improved Liquidity

Enhanced liquidity through increased cash reserves and credit facilities strengthens financial resilience and supports strategic initiatives.

Fleet Management

Ongoing fleet renewal and growth strategy positions the company to capitalize on market recovery and improve operational efficiency.

Negative Factors

Decline in Revenue

Significant revenue decline reflects market challenges, potentially impacting profitability and necessitating strategic adjustments.

Market Challenges in China

Reduced Chinese imports pose a structural challenge, affecting demand and necessitating market diversification for stability.

USTR Regulation Concerns

Proposed USTR regulations could increase operational costs, impacting competitiveness and financial performance in key markets.

Pacific Basin Shipping Business Overview & Revenue Model

Company Description

Pacific Basin Shipping (PCFBY) is a leading dry bulk shipping company headquartered in Hong Kong. The company specializes in the transportation of dry bulk commodities, including coal, grain, and iron ore, through its fleet of modern vessels. Operating globally, Pacific Basin services a diverse customer base across various sectors, including agriculture, mining, and energy. The company focuses on providing reliable and efficient shipping solutions, leveraging its extensive network and expertise in the dry bulk market.

How the Company Makes Money

Pacific 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 Financial Statement Overview

Summary

Pacific Basin Shipping shows a stable financial position with strong cash flows and a solid balance sheet. However, operational challenges are evident in the income statement, particularly with EBIT performance. The company demonstrates resilience with effective cash management and a declining debt trend, positioning it 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.32B	2.58B	2.30B	3.28B	2.97B	1.47B
Gross Profit	107.76M	135.24M	130.95M	732.08M	739.34M	36.87M
EBITDA	283.46M	357.43M	349.99M	924.66M	1.03B	-8.74M
Net Income	99.51M	131.70M	109.38M	701.86M	844.81M	-208.23M
Balance Sheet
Total Assets	2.33B	2.41B	2.43B	2.65B	2.75B	2.19B
Cash, Cash Equivalents and Short-Term Investments	295.50M	282.04M	261.40M	443.82M	459.67M	234.77M
Total Debt	310.24M	344.36M	366.25M	471.90M	648.59M	940.72M
Total Liabilities	534.30M	587.39M	634.53M	741.33M	914.21M	1.13B
Stockholders Equity	1.80B	1.83B	1.80B	1.91B	1.83B	1.06B
Cash Flow
Free Cash Flow	177.12M	180.93M	101.33M	850.60M	625.94M	116.19M
Operating Cash Flow	298.64M	309.33M	353.40M	935.32M	850.42M	219.61M
Investing Cash Flow	-39.90M	-87.40M	-61.17M	63.18M	-334.00M	-92.11M
Financing Cash Flow	-219.03M	-214.40M	-389.73M	-949.13M	-433.03M	-101.57M

Pacific Basin Shipping Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCFBY, the sentiment is Neutral. The current price of 6.32 is below the 20-day moving average (MA) of 6.80, below the 50-day MA of 6.68, and above the 200-day MA of 5.47, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 39.17 is Neutral, neither overbought nor oversold. The STOCH value of 49.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PCFBY.

Pacific Basin Shipping Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAC	81 Outperform	$1.76B	3.83	13.16%	3.63%	3.82%	-13.73%
GSL	81 Outperform	$1.31B	3.28	26.18%	5.94%	7.13%	23.37%
CMRE	76 Outperform	$1.90B	6.32	14.98%	2.86%	-29.82%	-16.77%
NMM	76 Outperform	$1.59B	6.29	8.36%	0.38%	-1.33%	-33.66%
PCFBY	71 Outperform	$1.70B	17.18	5.54%	3.09%	-4.54%	23.39%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIM	62 Neutral	$2.05B	1.02	25.25%	21.57%	1.63%	-30.30%

Pacific Basin Shipping Corporate Events

Pacific Basin Navigates Earnings Challenges with Strategic Optimism

During the latest earnings call, Pacific Basin Shipping Ltd. conveyed a mixed sentiment, reflecting a challenging financial period marked by a significant drop in net profit and reduced freight rates. Despite these hurdles, the company has managed to enhance its liquidity and financial strength, demonstrating a commitment to shareholder returns through dividends and share buybacks. This strategic financial management and market outperformance suggest a cautiously optimistic outlook for the future.