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Safe Bulkers (SB)
NYSE:SB
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Safe Bulkers
(NYSE:SB)
66Neutral
Safe Bulkers (SB) vs. S&P 500 (SPY)
Market Cap
$363.18M
Dividend Yield5.8%
Average Volume (3M)556.65K
Price to Earnings (P/E)4.2
Beta (1Y)0.91
Revenue Growth8.17%
EPS Growth35.92%
CountryUS
Employees941
SectorIndustrials
Sector Strength78
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.83
Shares Outstanding105,269,714
10 Day Avg. Volume375,089
30 Day Avg. Volume556,650
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.17
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.62
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside73.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Safe Bulkers Business Overview & Revenue Model
Company DescriptionSafe Bulkers, Inc., together with its subsidiaries, provides marine drybulk transportation services. It owns and operates drybulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore. As of March 18, 2022, the company had a fleet of 40 drybulk vessels having an average age of 10.4 years; and an aggregate carrying capacity of 3,925,500 deadweight tons. Its fleet consisted of 12 Panamax class vessels, 7 Kamsarmax class vessels, 15 post- Panamax class vessels, and 6 Capesize class vessels. Safe Bulkers, Inc. was incorporated in 2007 and is based in Monaco.
How the Company Makes MoneySafe Bulkers makes money primarily through the chartering of its dry bulk vessels to customers who need to transport bulk commodities. The company enters into time charter agreements where vessels are leased out for a specific period at a predetermined daily rate. Revenue is generated based on the number of days the vessel is chartered and the agreed-upon rate. Additionally, Safe Bulkers may also engage in spot chartering, where vessels are hired for single voyages at market rates. The company's earnings are influenced by factors such as global demand for bulk commodities, shipping market conditions, and the availability of vessels. Key partnerships with major commodity producers and traders can also contribute to its revenue streams.
Safe Bulkers Financial Statement Overview
Summary
Safe Bulkers shows strong revenue growth and profitability with a solid equity base. However, challenges include a decline in revenue growth from 2022 to 2023 and negative free cash flow, which could impact financial flexibility.Income Statement
The company has shown consistent revenue growth from 2019 to 2024, reaching $307.63 million in 2024. Gross profit margin improved significantly from 2020, reaching 45.57% in 2024. Net profit margin has also improved, marking 31.65% in 2024, indicating strong profitability. However, there's a decline in revenue from 2022 to 2023, which could be a concern.75
Positive
Balance Sheet
Safe Bulkers maintains a moderate debt-to-equity ratio of 0.65 in 2024, reflecting manageable leverage. The equity ratio has improved, reaching 59.27% in 2024, indicating a strong equity base. However, the increase in total debt from 2020 to 2024 could pose potential risks if leverage increases further.68
Positive
Cash Flow
The company's operating cash flow has remained strong, but free cash flow has been negative in recent years, notably -$14.32 million in 2024. The operating cash flow to net income ratio suggests strong cash generation relative to profits, but negative free cash flow could limit financial flexibility.62
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 | EBIT |
| 128.43M | 104.15M | 132.55M | 116.38M | -45.55M | EBITDA |
| 186.89M | 156.19M | 234.17M | 232.20M | 64.75M | Net Income Common Stockholders |
| 97.38M | 77.35M | 172.55M | 174.35M | 20.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 125.42M | 87.92M | 114.38M | 102.08M | 105.22M | Total Assets |
| 1.40B | 1.34B | 1.25B | 1.09B | 1.11B | Total Debt |
| 536.64M | 507.92M | 414.36M | 377.65M | 607.67M | Net Debt |
| 455.56M | 458.98M | 365.18M | 276.65M | 517.63M | 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
Neutral
3.45
Price Trends
3.57
Negative
3.56
Negative
4.06
Negative
Market Momentum
-0.05
Negative
51.59
Neutral
81.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SB, the sentiment is Neutral. The current price of 3.45 is above the 20-day moving average (MA) of 3.32, below the 50-day MA of 3.57, and below the 200-day MA of 4.06, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 81.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $227.92M | 2.00 | 35.83% | 7.58% | 12.43% | -1.63% | |
71 Outperform | $583.39M | 7.76 | 8.30% | 10.75% | 10.21% | ― | |
71 Outperform | $119.98M | 2.72 | 16.96% | 11.06% | 51.91% | 2984.06% | |
70 Outperform | $282.20M | 6.85 | 7.69% | 9.59% | 7.46% | 8.41% | |
66 Neutral | $363.18M | 4.15 | 11.99% | 5.80% | 8.17% | 35.92% | |
64 Neutral | $4.27B | 11.81 | 5.31% | 249.66% | 4.08% | -8.61% | |
55 Neutral | $170.18M | 25.00 | 2.56% | 11.56% | -12.93% | -86.34% |
* Industrials Sector Average
Performance Comparison
SB
Safe Bulkers
3.45
-1.51
-30.44%
DSX
Diana Shipping
1.47
-1.35
-47.87%
ESEA
Euroseas
32.34
5.54
20.67%
GNK
Genco Shipping
13.58
-6.54
-32.50%
SHIP
Seanergy Maritime
5.74
-3.06
-34.77%
PANL
Pangaea Logistics Solutions
4.17
-2.72
-39.48%
Safe Bulkers Earnings Call Summary
Earnings Call Date:Feb 18, 2025
(Q4-2024)
| % Change Since: -5.22%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strengths in capital structure and fleet renewal efforts, but challenges due to a weaker charter market and decreasing financial performance. The company's commitment to sustainability and cash flow visibility provides a positive angle, though market conditions remain a concern.Q4-2024 Updates
Positive Updates
Strong Capital Structure and Liquidity
Safe Bulkers maintains a strong capital structure with a leverage of 35% and ample liquidity of $276 million, providing flexibility for capital allocation and fleet expansion.
Significant Contracted Revenue
The company has a contracted revenue of $205 million, providing considerable cash flow visibility, especially with Capes that have a period time charters averaging $22,000 daily.
Fleet Renewal and Environmental Upgrades
Safe Bulkers has invested in environmentally upgraded vessels and new builds, with a current fleet average age of 10 years and 24 vessels having undergone environmental upgrades.
Negative Updates
Weaker Charter Market Environment
The charter market weakened during Q4 2024, impacting revenues and profitability, resulting in decreased revenues due to lower charter hires and increased operating expenses.
Decreased Financial Performance
Adjusted EBITDA for Q4 2024 was $40.7 million, down from $50.7 million in Q4 2023. Adjusted earnings per share dropped to $0.15 from $0.25 in the same period.
Asset Prices and Market Conditions
Asset prices weakened during the second half of 2024, and secondary prices may fall further in line with freight markets. The company anticipates a softer trade market as supply grows faster than demand.
Company Guidance
During the Safe Bulkers conference call for the fourth quarter of 2024, the company provided detailed guidance on several financial and operational metrics. The company announced a $0.05 per share dividend, maintaining a strong capital structure with a leverage of about 35% and liquidity of $276 million. They have a contracted revenue of $205 million, bolstered by $145 million from period-chartered Capes with an average daily rate of $22,000. The company reported a net income of $19.4 million for the fourth quarter and an adjusted EBITDA of $40.7 million. The company's fleet, with an average age of 10 years, includes 11 eco-ships and 11 Phase 3 vessels, with plans for seven more Phase 3 newbuilds. The company's debt stands at $545 million, with a weighted average interest rate of 6.12%. The management highlighted a focus on fleet renewal and upgrading, anticipating a softer trade market in the coming quarters but remaining committed to sustainable growth and shareholder wealth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.