Pacific Basin Shipping (PCFBY) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: 3.26%
• Average Volume (3M): 16.00
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.21
• Revenue Growth: -4.54%
• EPS Growth: 23.39%
• Country: US
• Employees: 5,003
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 0.13
• Shares Outstanding: 258,336,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 16
• PEG Ratio: -0.48
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 10.08
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 24.32
• Enterprise Value/Ebitda: 7.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $8.00 ▲(29.24% Upside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is supported primarily by strong financial stability (low leverage and continued positive cash generation) and a constructive earnings-call outlook emphasizing liquidity and shareholder returns. These positives are tempered by weak technical momentum and a valuation that looks relatively high versus a cyclical, recently weakening earnings and revenue backdrop.

Positive Factors

Strong balance sheet and liquidity

Very low leverage and substantial committed liquidity give Pacific Basin durable financial flexibility through shipping cycles. Net cash and undrawn facilities support capex timing, selective fleet renewal, and downside protection versus peers reliant on debt, reducing insolvency and refinancing risk.

Consistent cash generation

Persistent positive operating cash flow even as profits normalize shows the business converts revenue into real cash. This durable cash generation funds dividends, selective vessel purchases/sales and operational needs without heavy new borrowing, improving resilience in weaker freight cycles.

Disciplined capital allocation & shareholder returns

An explicit, cash‑sensitive dividend framework plus buyback authorization demonstrates disciplined allocation and management alignment with shareholders. It preserves flexibility when cash is needed while returning excess cash in stronger years, supporting long-term shareholder value without risking balance sheet strength.

Negative Factors

TCE and revenue weakness

Material year‑on‑year TCE and revenue declines signal durable earnings pressure tied to freight cycle dynamics. Lower realized charter rates compress margins and reduce reinvestment capacity; if market recovery stalls, profitability and cash metrics may remain subdued for multiple quarters.

Aging fleet concentration

A large share of older vessels raises structural costs: higher drydocking, retrofit and fuel inefficiency expenses and potential regulatory retrofits for emissions. Managing renewals/scrappings requires sustained capex or sales, pressuring margins and limiting ability to rapidly upgrade to more efficient tonnage.

Industry supply/demand imbalance

Structural fleet deliveries outpacing ton‑mile demand creates persistent downward pressure on freight rates. For a company with spot exposure and open tonnage, this industry imbalance can extend low TCE periods, hinder margin recovery, and make fleet renewal timing and utilization management more challenging.

Pacific Basin Shipping Business Overview & Revenue Model

Company Description

Pacific 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 Money

Pacific Basin makes money mainly by earning freight and charter income from carrying dry bulk cargoes on its vessels. Its core revenue stream comes from time charter and voyage charter employment: (1) In time charters, customers pay a daily hire rate for use of a vessel for a period, and Pacific Basin earns hire revenue while managing the ship and its operating performance (the exact allocation of voyage costs depends on the charter terms). (2) In voyage charters, Pacific Basin earns revenue based on transporting a specific cargo from one port to another; the company bears voyage-related costs such as bunkers (fuel), port charges, and canal fees, and its earnings depend on the net spread between freight collected and these voyage expenses. The company also generates earnings by actively managing its chartering and freight "book" (commercial operations), including positioning ships, optimizing routes and loading patterns, and using a mix of owned and chartered-in vessels to meet cargo requirements and capture market opportunities; this can create additional margin when it secures cargoes at attractive rates and/or sources vessels at favorable terms. Beyond freight, the company can earn other shipping-related income such as demurrage (compensation for delays beyond agreed laytime) and may realize gains or losses from the sale and purchase of vessels as part of fleet renewal (when disclosed, these are typically reported separately from underlying operating earnings). Key factors that drive its earnings include prevailing Handysize and Supramax/Ultramax freight rates, fleet utilization, fuel prices (and ability to pass through or manage bunker exposure), operating cost control, port congestion and trade patterns, and the balance between spot exposure and contract coverage used to manage cyclicality.

Pacific Basin Shipping Financial Statement Overview

Summary

Financials reflect a normalized post-cycle environment: profitability remains positive but materially lower, with weakening revenue momentum and modest 2025 margins. Offsetting this, the balance sheet is notably strong with low and improving leverage, and cash generation remains positive despite declining free cash flow versus last year.

Income Statement

Results show a clear post-cycle normalization. After exceptionally strong profitability in 2021–2022 (very high net margins), earnings have stepped down materially in 2023–2025, alongside weakening top-line momentum (2025 revenue down ~10% vs. 2024). Margins in 2025 are modest (gross margin ~3.6%, net margin ~2.8%), but the company remains profitable and still generates positive EBIT and EBITDA, indicating resilience despite a tougher rate environment.

Balance Sheet

Leverage is conservative and improving, with debt-to-equity declining from ~0.88 (2020) to ~0.13 (2025), providing meaningful financial flexibility for a cyclical shipping business. Equity remains sizable relative to assets, supporting balance-sheet stability. The main weakness is profitability on equity has cooled sharply from peak-cycle levels (2021–2022) to low-single-digit returns in 2025, reflecting the earnings downshift rather than balance-sheet stress.

Cash Flow

Cash generation remains solid, with operating cash flow positive each year and still healthy in 2025. Free cash flow is also positive, but has been trending down recently (2025 free cash flow down ~16.5% vs. 2024) and is moderate relative to net income in 2025. A key strength is that cash flow held up even as profits normalized, though coverage levels are well below the peak seen in 2021–2022, highlighting a less favorable operating backdrop.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.08B	2.58B	2.30B	3.28B	2.97B
Gross Profit	75.83M	135.24M	130.95M	732.08M	739.34M
EBITDA	259.67M	357.43M	349.99M	924.66M	1.03B
Net Income	58.17M	131.70M	109.38M	701.86M	844.81M
Balance Sheet
Total Assets	2.28B	2.41B	2.43B	2.65B	2.75B
Cash, Cash Equivalents and Short-Term Investments	270.57M	282.04M	261.40M	443.82M	459.67M
Total Debt	230.43M	344.36M	366.25M	471.90M	648.59M
Total Liabilities	453.46M	587.39M	634.53M	741.33M	914.21M
Stockholders Equity	1.83B	1.83B	1.80B	1.91B	1.83B
Cash Flow
Free Cash Flow	147.87M	180.93M	101.33M	850.60M	625.94M
Operating Cash Flow	264.27M	309.33M	353.40M	935.32M	850.42M
Investing Cash Flow	-54.43M	-87.40M	-61.17M	63.18M	-334.00M
Financing Cash Flow	-230.25M	-214.40M	-389.73M	-949.13M	-433.03M

Pacific Basin Shipping Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCFBY, the sentiment is Negative. The current price of 6.19 is below the 20-day moving average (MA) of 8.15, below the 50-day MA of 7.92, and below the 200-day MA of 6.51, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 34.10 is Neutral, neither overbought nor oversold. The STOCH value of 0.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCFBY.

Pacific Basin Shipping Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSL	83 Outperform	$1.37B	3.00	24.76%	6.16%	7.13%	23.37%
DAC	81 Outperform	$2.08B	3.51	13.56%	3.64%	3.82%	-13.73%
CMRE	72 Outperform	$2.09B	5.21	16.86%	2.94%	-29.82%	-16.77%
NMM	70 Outperform	$1.87B	3.29	8.85%	0.39%	-1.33%	-33.66%
ZIM	69 Neutral	$3.12B	5.34	12.06%	20.35%	1.63%	-30.30%
PCFBY	67 Neutral	$1.85B	25.63	2.51%	3.26%	-4.54%	23.39%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%