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Pacific Basin Shipping Limited (PCFBY)
OTHER OTC:PCFBY
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Pacific Basin Shipping
(OTC:PCFBY)
Rating:72Outperform
Price Target:―
Pacific Basin Shipping (PCFBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.34B
Dividend Yield4.2%
Average Volume (3M)62.00
Price to Earnings (P/E)10.4
Beta (1Y)0.23
Revenue Growth12.36%
EPS Growth20.80%
CountryUS
Employees5,003
SectorIndustrials
Sector Strength90
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.29
Shares Outstanding258,574,340
10 Day Avg. Volume0
30 Day Avg. Volume62
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)0.77
Price to Sales (P/S)0.00
P/FCF Ratio6.33
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit10.13
Enterprise Value/Ebitda1.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Pacific Basin Shipping Business Overview & Revenue Model
Company DescriptionPacific Basin Shipping Limited (PCFBY) is a leading shipping company specializing in the transportation of dry bulk commodities. With a robust fleet of modern and efficient vessels, the company primarily operates in the Handymax and Supramax segments, which are known for their versatility and ability to access a wide range of ports. Headquartered in Hong Kong, Pacific Basin Shipping serves a global customer base, providing reliable and cost-effective maritime logistics solutions for the agricultural, mineral, and energy sectors.
How the Company Makes MoneyPacific Basin Shipping makes money by transporting dry bulk commodities such as grains, coal, and minerals across global trade routes. The company generates revenue primarily through time charter agreements and voyage charters. In time charters, customers hire the company's vessels for a specific period, paying a daily charter rate. Voyage charters involve transporting cargo from one port to another, with revenue based on a freight rate per ton of cargo. The company's earnings are influenced by factors such as global demand for dry bulk shipping, freight rate fluctuations, and efficient fleet management. Additionally, Pacific Basin Shipping may engage in strategic partnerships and long-term contracts with key customers to secure stable revenue streams.
Pacific Basin Shipping Earnings Call Summary
Earnings Call Date:Feb 28, 2025
(Q4-2024)
| % Change Since: 31.64%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
Pacific Basin demonstrated strong financial performance and strategic management in 2024, with significant shareholder returns and a solid market position. However, challenges such as increased operating costs, a weakened Q4 freight market, and potential impacts from U.S. tariffs and regulations pose risks. Overall, the company is well-positioned for future growth, leveraging market volatility and maintaining flexibility.Q4-2024 Updates
Positive Updates
Strong Financial Performance
Pacific Basin achieved an EBITDA of $333 million, underlying profit of $114 million, and net profit of $132 million in 2024. A robust balance sheet with $548 million in committed liquidity and a net cash position of $20 million was maintained.
Significant Shareholder Returns
The company completed a $40 million share buyback program and announced another $40 million buyback for 2025. A total of 83% of 2024 net profit, excluding vessel disposal gains, will be distributed to shareholders.
Freight Market and Outperformance
Handysize and Supramax vessels outperformed indices by $1,720 and $710 per day, respectively, driven by well-timed cargo coverage and market optimization strategies.
Strategic Fleet Management
The company exercised purchase options on modern vessels and sold older, less efficient ones. New dual-fuel methanol Ultramax vessels have been contracted, aligning with long-term emission reduction goals.
Growth Prospects and Market Position
Minor bulk tonne-miles are expected to grow 2.3% in 2025, with global economic support and trade development. Pacific Basin aims to capitalize on market volatility and maintain a strong position in the minor bulk segment.
Negative Updates
Weakened Freight Market in Q4 2024
The freight market weakened in Q4 2024 due to normalization of Panama Canal transit and weaker-than-expected trade exports, impacting short-term market conditions.
Increased Operating Costs
Higher depreciation costs and increased long-term charter vessel costs led to a 2% increase in Handysize daily core vessel costs and a slight increase in Supramax cash breakeven levels.
Potential Impact from U.S. Tariffs and Regulations
New U.S. tariffs on Chinese imports and potential regulatory impacts on Chinese-built vessels could disrupt market patterns and affect Pacific Basin's operations, especially concerning U.S. port calls.
Company Guidance
During Pacific Basin's 2024 Annual Results Earnings Call, CEO Martin Fruergaard provided guidance on the company's financial performance and strategic initiatives. The company reported an EBITDA of $333 million, an underlying profit of $114 million, and a net profit of $132 million, resulting in a 7% return on equity and an earnings per share of HK 0.199. Pacific Basin maintains a strong balance sheet with net cash of $20 million and available committed liquidity of $548 million. The core business generated $178 million before overheads, with an operating activity margin of $630 per day over 27,610 days. The Board proposed a final dividend of HK 0.051 per share, which, combined with the interim dividend, amounts to $61 million, representing 50% of the net profit for the year. A $40 million share buyback program for 2025 was also announced. In 2024, the company completed a $40 million share buyback, reducing issued share capital by 2%. The average market spot freight rates for Handysize and Supramax vessels increased by 24% and 21%, respectively, due to strong global dry bulk demand, particularly from China. For the first quarter of 2025, Pacific Basin covered 92% and 100% of its Handysize and Supramax fleet days at rates higher than the current market spot rates. The company outperformed the indices, achieving daily TCE earnings of US$12,840 for Handysize and US$13,630 for Supramax. Pacific Basin's fleet growth strategy includes acquiring modern secondhand vessels and investing in fuel efficiency technologies, aligning with its long-term goal of net zero emissions by 2050. The company's financial position remains robust, with $548 million in available liquidity and a positive cash flow from operations of $259 million. Looking ahead, the company anticipates minor bulk tonne-mile growth of 2.3% in 2025, despite potential challenges such as iron ore demand moderation and coal demand decline. Pacific Basin remains cautiously optimistic about 2025 and committed to strategic growth through disciplined capital allocation and fleet renewal initiatives.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 | 866.03M | 850.32M | 157.63M |
| 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
5.45
Price Trends
5.09
Positive
4.69
Positive
4.71
Positive
Market Momentum
0.08
Negative
59.05
Neutral
83.35
Negative
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 5.45 is above the 20-day moving average (MA) of 5.25, above the 50-day MA of 5.09, and above the 200-day MA of 4.71, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 83.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCFBY.
Pacific Basin Shipping Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $991.61M | 2.63 | 27.25% | 8.01% | 3.94% | 19.85% | |
74 Outperform | $2.17B | 9.39 | 11.09% | 7.81% | 25.60% | -9.32% | |
72 Outperform | $1.34B | 10.37 | 7.26% | 4.20% | 12.36% | 20.80% | |
71 Outperform | $1.65B | 3.69 | 14.14% | 4.60% | 4.93% | -17.08% | |
69 Neutral | $653.84M | 14.59 | 5.02% | 7.58% | -7.38% | 1295.53% | |
69 Neutral | $1.33B | 22.07 | 5.09% | 11.97% | 6.68% | -57.55% | |
65 Neutral | $10.94B | 15.62 | 5.18% | 2.23% | 3.14% | -26.85% |
* Industrials Sector Average
Performance Comparison
PCFBY
Pacific Basin Shipping
5.45
-0.26
-4.55%
DAC
Danaos
90.12
7.13
8.59%
GNK
Genco Shipping
15.69
-3.47
-18.11%
GSL
Global Ship Lease
28.09
4.73
20.25%
SFL
SFL Corporation
9.22
-3.22
-25.88%
SBLK
Star Bulk Carriers
18.96
-3.10
-14.05%
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.