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Safe Bulkers (SB)
NYSE:SB
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Safe Bulkers
(NYSE:SB)
Rating:75Outperform
Price Target:
$4.50
â–²(11.11%Upside)
Safe Bulkers (SB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$410.26M
Dividend Yield4.99%
Average Volume (3M)386.23K
Price to Earnings (P/E)6.0
Beta (1Y)0.93
Revenue Growth-2.98%
EPS Growth-0.96%
CountryUS
Employees941
SectorIndustrials
Sector Strength89
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.05
Shares Outstanding102,309,940
10 Day Avg. Volume381,823
30 Day Avg. Volume386,225
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)0.51
Price to Sales (P/S)0.00
P/FCF Ratio7.42
Enterprise Value/Market Cap1.97
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit6.61
Enterprise Value/Ebitda1.24
Forecast
1Y Price Target
$5.00Price Target Upside23.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Safe Bulkers Business Overview & Revenue Model
Company DescriptionSafe Bulkers, Inc. is a global shipping company specializing in the marine transportation of dry bulk commodities. The company operates primarily through its fleet of bulk carriers, which are employed in the transportation of various bulk cargoes such as coal, grain, and iron ore across international waters. Headquartered in Monaco, Safe Bulkers provides reliable and efficient transportation services to clients worldwide, ensuring the safe and timely delivery of goods.
How the Company Makes MoneySafe Bulkers generates revenue through the operation and leasing of its fleet of dry bulk carriers. The company's primary revenue stream comes from time charters and spot charters, where vessels are leased to clients for predetermined periods or single voyages. Safe Bulkers earns income based on charter hire rates, which are influenced by market supply and demand dynamics, global trade patterns, and economic conditions. Additionally, Safe Bulkers may engage in strategic partnerships or contracts with major commodity producers and traders to secure consistent business and optimize fleet utilization. The company also focuses on cost management and operational efficiency to enhance its profitability.
Safe Bulkers Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q1-2025)
| % Change Since: 10.66%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment. The company showcased a strong balance sheet, consistent dividends, and successful vessel deliveries, but faced significant challenges with a weaker charter market, decreased revenues, and increased operating expenses. Despite strategic initiatives to strengthen their fleet and financial position, market conditions remain challenging.Q1-2025 Updates
Positive Updates
Strong Balance Sheet and Capital Structure
Safe Bulkers maintained a strong capital structure, with ample liquidity and a leverage of about 37%.
New Vessel Deliveries and Environmental Upgrades
The company took delivery of its 12th newbuild and has environmentally upgraded 24 vessels, with 11 being ECO vessels. They have six more Phase III vessels on order.
Consistent Dividend Policy
Declared a 14th consecutive quarterly dividend of $0.05, representing a 5.5% dividend yield.
Share Repurchase Program
Completed a repurchase program of 3 million common shares, amounting to roughly 3% of the company's common stock.
Cash Position and Financial Flexibility
Reported a strong cash position of around $122 million and $128 million available in committed revolving credit facilities.
Negative Updates
Weaker Charter Market Environment
Faced a softer charter market due to seasonality and geopolitical uncertainties, leading to decreased revenues and increased operating expenses.
Decreased Adjusted EBITDA
Adjusted EBITDA for Q1 2025 stood at $29.4 million, compared to $64.3 million for the same period in 2024.
Decreased Earnings Per Share
Adjusted earnings per share for Q1 2025 was $0.05, compared to $0.20 during the same period in 2024.
Increased Operating Expenses
Daily vessel operating expenses increased by 6% to $5,765 for Q1 2025 compared to $5,442 for the same period in 2024.
Soft Panamax Charter Market
The Panamax charter market remains soft at about $11,500, reflecting a challenging market environment.
Company Guidance
During the first quarter of 2025, Safe Bulkers faced a challenging market environment characterized by softer charter markets, geopolitical uncertainties, and tariff-related concerns. Despite these challenges, the company maintained a strong balance sheet and completed the delivery of its 12th newbuild. Safe Bulkers declared a $0.05 per share dividend, reflecting a 5.5% dividend yield, and completed a share repurchase program of 3 million common shares, amounting to a 3% buyback. The company's leverage was approximately 37%, with ample liquidity and capital resources of $276 million. The global drybulk demand is expected to range from -1% to 0% in 2025, with grain and minor bulk shipments anticipated to drive growth. Safe Bulkers continues to focus on fleet renewal, environmental performance, and capital allocation towards newbuilds to enhance shareholder value, with $203 million in revenue backlog providing cash flow visibility. The company maintained a young fleet with an average age of 10 years and achieved zero vessels in the D and E carbon intensity ratings for 2024.Safe Bulkers Financial Statement Overview
Summary
Safe Bulkers demonstrates solid operational efficiency and strong cash flow management, despite a decline in revenue and net income. The balance sheet shows a healthy equity position but highlights a reliance on debt. Overall, the company is stable with potential for future growth if revenue trends reverse.Income Statement
The TTM (Trailing-Twelve-Months) revenue shows a decline compared to the previous full year. Gross profit and EBITDA margins remain strong at 42.23% and 45.66% respectively, despite the revenue drop, indicating efficiency in cost management. However, the net profit margin has slightly decreased to 27.32% from 31.66% in the previous year, reflecting a slight dip in profitability.70
Positive
Balance Sheet
The debt-to-equity ratio is moderately high at 0.63, suggesting reliance on debt, though it is stable compared to previous years. Return on equity remains robust at 9.59%, indicating good profitability relative to equity. The equity ratio of 59.86% suggests a strong equity base, providing stability.65
Positive
Cash Flow
Operating cash flow is positive, although decreased compared to the previous year, indicating strong cash generation. The free cash flow has improved significantly, moving from negative to positive, showing better cash management. The operating cash flow to net income ratio of 1.22 indicates efficient conversion of net income into cash.75
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 307.63M | 284.40M | 349.72M | 329.03M | 198.16M |
| Gross Profit | 140.17M | 119.41M | 210.02M | 194.87M | 32.22M |
| EBITDA | 186.89M | 156.19M | 234.17M | 232.20M | 64.75M |
| Net Income | 97.38M | 77.35M | 172.55M | 174.35M | 20.37M |
Balance Sheet | |||||
| Total Assets | 1.40B | 1.34B | 1.25B | 1.09B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 125.42M | 87.92M | 114.38M | 102.08M | 105.22M |
| Total Debt | 536.64M | 507.92M | 414.36M | 377.65M | 607.67M |
| Total Liabilities | 571.48M | 547.30M | 474.00M | 415.08M | 660.88M |
| Stockholders Equity | 831.62M | 792.51M | 771.92M | 679.24M | 427.55M |
Cash Flow | |||||
| Free Cash Flow | -14.32M | -86.90M | 34.72M | 107.97M | 12.93M |
| Operating Cash Flow | 130.46M | 122.21M | 218.00M | 217.20M | 63.38M |
| Investing Cash Flow | -71.73M | -151.73M | -229.40M | 8.60M | -34.78M |
| Financing Cash Flow | -25.86M | 29.14M | -40.10M | -225.90M | -9.29M |
Safe Bulkers Technical Analysis
Positive
4.05
Price Trends
3.74
Positive
3.63
Positive
3.74
Positive
Market Momentum
0.10
Negative
69.58
Neutral
81.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SB, the sentiment is Positive. The current price of 4.05 is above the 20-day moving average (MA) of 3.83, above the 50-day MA of 3.74, and above the 200-day MA of 3.74, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 69.58 is Neutral, neither overbought nor oversold. The STOCH value of 81.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SB.
Safe Bulkers Risk Analysis
Safe Bulkers disclosed 72 risk factors in its most recent earnings report. Safe Bulkers reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Safe Bulkers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $336.74M | 2.59 | 39.30% | 5.41% | 14.62% | 21.99% | |
75 Outperform | $410.26M | 5.99 | 9.82% | 4.99% | -2.98% | -0.96% | |
71 Outperform | $137.33M | 5.23 | 10.11% | 2.96% | 17.53% | 58.04% | |
69 Neutral | $625.49M | 13.96 | 5.02% | 4.12% | -7.38% | 1295.53% | |
63 Neutral | $328.76M | 14.67 | 4.05% | 3.99% | 13.10% | -54.75% | |
59 Neutral | $184.08M | 23.11 | 2.79% | 2.52% | -8.74% | -70.04% | |
58 Neutral | HK$14.16B | 4.53 | -3.01% | 6.82% | 3.67% | -54.16% |
* Industrials Sector Average
Performance Comparison
SB
Safe Bulkers
4.13
-1.07
-20.58%
DSX
Diana Shipping
1.65
-1.03
-38.43%
ESEA
Euroseas
49.55
20.53
70.74%
GNK
Genco Shipping
15.00
-3.77
-20.09%
SHIP
Seanergy Maritime
7.03
-1.36
-16.21%
PANL
Pangaea Logistics Solutions
5.20
-1.53
-22.73%
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.