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Safe Bulkers Inc (SB)
NYSE:SB
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Safe Bulkers
(NYSE:SB)
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Rating:72Outperform
Price Target:
$6.00
▲(11.73% Upside)
Action:ReiteratedDate:12/02/25
Safe Bulkers' overall stock score is driven by its solid financial performance and positive technical indicators. The company's strong cash flow and operational efficiency are significant strengths. However, fair valuation and challenges highlighted in the earnings call, such as decreased revenue and geopolitical risks, slightly temper the score.
Positive Factors
Fleet Renewal and Environmental Upgrades
The fleet renewal and environmental upgrades enhance operational efficiency and compliance with environmental regulations, positioning Safe Bulkers for long-term competitiveness.
Strong Cash Flow Generation
Robust cash flow generation provides financial flexibility for strategic investments and debt management, supporting sustainable business growth.
Share Repurchase Program
The share repurchase program reflects management's confidence in the company's future and aims to enhance shareholder value through strategic capital allocation.
Negative Factors
Decreased Revenue and Earnings
Declining revenue and earnings in a weaker market environment could challenge Safe Bulkers' profitability and growth prospects if market conditions do not improve.
Geopolitical and Economic Uncertainties
Geopolitical and economic uncertainties can disrupt global trade flows, impacting demand for shipping services and posing risks to Safe Bulkers' operational stability.
Lower Time Charter Equivalent (TCE)
A decline in TCE rates indicates reduced profitability per vessel, potentially affecting overall revenue and profit margins if the trend persists.
Safe Bulkers (SB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$649.79M
Dividend Yield4.16%
Average Volume (3M)666.75K
Price to Earnings (P/E)21.4
Beta (1Y)1.12
Revenue Growth-13.74%
EPS Growth-59.37%
CountryUS
Employees941
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.14
Shares Outstanding102,328,390
10 Day Avg. Volume754,935
30 Day Avg. Volume666,753
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.46
Price to Sales (P/S)1.25
P/FCF Ratio-26.82
Enterprise Value/Market Cap1.61
Enterprise Value/Revenue3.81
Enterprise Value/Gross Profit10.31
Enterprise Value/Ebitda7.46
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.52
Revenue Forecast (FY)$277.00M
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 generates revenue primarily through the chartering of its vessels. The company employs a mix of time charters and spot charters, allowing it to capitalize on fluctuating market rates for shipping dry bulk commodities. The time charter contracts typically provide more stable and predictable revenue streams over longer periods, while spot charters can yield higher profits during periods of high demand. Additionally, Safe Bulkers may benefit from partnerships with major shipping companies and commodity traders, enhancing their market reach and ability to secure lucrative contracts. Factors such as global demand for commodities, shipping rates, and operational efficiency also significantly influence the company's earnings.
Safe Bulkers Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operationally and strategically the company emphasized strong liquidity, disciplined free cash flow generation (17 consecutive quarters), a competitive, predominantly Japanese-built fleet and meaningful contracted revenue backlog. However, near-term operating profitability showed modest deterioration (adjusted EBITDA down ~8.1%, EPS down ~6.7%), vessel operating costs rose materially (~13% YoY), and the top-line freight environment faces macro and China-related downside risks, shipyard timing constraints and fuel transition uncertainty. On balance, the company appears financially resilient with positive structural positioning, but short-term earnings and cost pressures along with market uncertainty temper the outlook.Q4-2025 Updates
Positive Updates
Dividend Declaration and Shareholder Returns
Board declared a $0.05 per share common dividend for Q4 2025, continuing shareholder distributions and reflecting management confidence in cash generation and capital allocation.
Strong Liquidity and Financial Flexibility
Company reported approximately $167 million cash (as of Feb 13, 2026) plus $218 million available in revolving credit facilities, providing combined liquidity of about $385 million to support operations, investments and shareholder returns.
Contracted Revenue Backlog and Time Charter Coverage
Capesize segment alone has an average daily charter hire of ~$24,000 and a contracted revenue backlog topping $130 million; total contracted revenue backlog cited at roughly $178 million, providing near-term cash flow visibility.
Sustained Free Cash Flow Generation
Company highlighted its 17th consecutive quarter of free cash flow generation, underlining disciplined cost control and consistent cash generation across market cycles.
Fleet Quality, Renewal and Competitive Positioning
Order book of 8 newbuilds (mainly Japanese-built), with fleet ~80% Japanese built vs. ~40% global average, signaling a focus on younger, fuel-efficient tonnage to support competitiveness and CII/efficiency advantages.
Conservative Balance Sheet and Low Net Debt Intensity
Management emphasized a healthy balance sheet with comfortable leverage and a low net debt per vessel of ~€8.4 million, supporting long-term growth optionality.
Market Demand Areas with Growth Potential
BIMCO/IMF forecasts cited: global dry bulk demand growth roughly 2%–3% in 2026; grains expected to grow 5%–6% in 2026; India singled out as a growth engine (GDP ~6.4% projected), supporting ton-mile demand prospects.
Negative Updates
Adjusted EBITDA Decline
Adjusted EBITDA for Q4 2025 decreased to $37.4 million from $40.7 million in Q4 2024, a decline of about 8.1%, indicating weaker operating profitability versus the prior year quarter.
Adjusted EPS Slightly Lower Year-over-Year
Adjusted earnings per share for Q4 2025 were $0.14 versus $0.15 in Q4 2024, a decrease of approximately 6.7% (calculated on weighted average shares of 102.3m vs 106.4m).
Rising Vessel Operating Expenses
Daily vessel operating expenses increased ~13% to $5,686 in Q4 2025 from $5,047 in Q4 2024; OpEx excluding write-off delivery expenses rose ~6%, pressuring margins and free cash flow if trend continues.
Market Volatility and Macro Risks
Management highlighted increased market volatility driven by geopolitical issues and persistent downside risks from China including high port inventories (+11% YoY mentioned), a weak property sector and policy/industrial adjustments that could soften seaborne demand.
Softness in Key Commodity Flows
Coal shipments projected to decline 1%–2% in 2026 and global coal demand expected to fall ~1.4% (2025–2027); iron ore shipments growth limited (~1% in 2026) with downside risk from elevated Chinese inventories — risks to freight demand mix.
Fleet Renewal Timing and Secondhand Market Constraints
Management noted limited availability of quality secondhand Japanese-built tonnage and fully booked shipyards through 2028, pushing newbuild delivery timing into 2029 — a challenge for near-term fleet renewal and growth plans.
Regulatory and Fuel Transition Uncertainty
Postponement and uncertainty around global fuel standards (IMO) and a small dual-fuel/new-fuel order book in dry bulk create transitional/regulatory risk and potential compliance cost/operational implications through 2030.
Company Guidance
Management's guidance was that supply and demand should broadly match in 2026, with dry‑bulk supply growth of about 2.5% in 2026 and ~3% in 2027, deliveries around 3% in 2026, an order book equal to ~11.4% of the fleet, and BIMCO demand growth of 2–3% (ton‑mile support from sailing distances +0.5–1.5%); commodity outlooks included iron ore +1% (2026–27), coal −1% to −2% in 2026 (IEA −1.4% 2025–27; imports −4%; China −1.5%), grains +5–6% (2026) and minor bulks +3.5–4.5%. For the company, Q4 adjusted EPS was $0.14 (vs. $0.15 YoY), adjusted EBITDA $37.4M (Q4'24: $40.7M), average operated fleet ~45 vessels with a TCE reference of $6,521, daily vessel OpEx $5,686 (up 13% YoY), seven Capes on period charters (avg remaining duration 1.8 years at ~$24,000/day) with Capes backlog topping $130M and total contracted revenue/backlog cited at ~$178M; the Board declared a $0.05/share dividend, liquidity was highlighted as ~€163–167M cash plus ~€218–220M undrawn RCF (combined liquidity ≈$385M), low net debt per vessel of €8.4M, an average fleet age ~10.4 years and ~80% Japanese‑built vessels.Safe Bulkers Financial Statement Overview
Summary
Safe Bulkers demonstrates solid financial health with strong operational margins and cash flow generation. Despite a decline in revenue growth, the company maintains efficient cost management and a stable balance sheet with moderate leverage. The robust cash flow performance enhances its financial flexibility.Income Statement
Safe Bulkers has shown a decline in revenue growth in the TTM period, with a negative growth rate of -1.03%. However, the company maintains a solid gross profit margin of 36.93% and a net profit margin of 16.78%, indicating efficient cost management. The EBIT and EBITDA margins are also strong at 29.28% and 51.07%, respectively, reflecting robust operational performance despite the revenue decline.65
Positive
Balance Sheet
The company's debt-to-equity ratio stands at 0.62, indicating a moderate level of leverage, which is manageable. The return on equity (ROE) is relatively low at 5.59%, suggesting limited profitability from shareholders' equity. However, the equity ratio is healthy, with stockholders' equity making up a significant portion of total assets, indicating financial stability.70
Positive
Cash Flow
Safe Bulkers has demonstrated a strong free cash flow growth rate of 58.01% in the TTM period, showcasing improved cash generation capabilities. The operating cash flow to net income ratio is 1.64, indicating good cash conversion efficiency. The free cash flow to net income ratio of 0.57 further supports the company's ability to generate cash relative to its net income.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 274.66M | 307.63M | 284.40M | 349.72M | 329.03M | 198.16M |
| Gross Profit | 101.42M | 140.17M | 119.41M | 210.02M | 194.87M | 32.22M |
| EBITDA | 140.28M | 190.46M | 159.42M | 242.57M | 245.13M | 64.96M |
| Net Income | 46.09M | 97.38M | 77.35M | 172.55M | 174.35M | -12.90M |
Balance Sheet | ||||||
| Total Assets | 1.37B | 1.40B | 1.34B | 1.25B | 1.09B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 115.25M | 128.42M | 89.94M | 114.38M | 102.08M | 105.22M |
| Total Debt | 516.28M | 536.64M | 507.92M | 414.36M | 377.65M | 607.67M |
| Total Liabilities | 546.33M | 571.48M | 547.30M | 474.00M | 415.08M | 642.77M |
| Stockholders Equity | 826.28M | 831.62M | 792.51M | 771.92M | 679.24M | 462.86M |
Cash Flow | ||||||
| Free Cash Flow | 54.68M | -14.32M | -86.90M | 34.72M | 107.97M | 12.93M |
| Operating Cash Flow | 95.69M | 130.46M | 122.21M | 218.00M | 217.20M | 63.38M |
| Investing Cash Flow | -28.95M | -71.73M | -151.73M | -229.40M | 8.55M | -34.78M |
| Financing Cash Flow | -26.40M | -25.86M | 29.14M | -40.10M | -225.90M | -9.29M |
Safe Bulkers Technical Analysis
Positive
5.37
Price Trends
5.35
Positive
5.01
Positive
4.49
Positive
Market Momentum
0.25
Negative
70.43
Negative
95.14
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 5.37 is below the 20-day moving average (MA) of 5.84, above the 50-day MA of 5.35, and above the 200-day MA of 4.49, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 70.43 is Negative, neither overbought nor oversold. The STOCH value of 95.14 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $437.35M | 3.60 | 31.33% | 4.95% | 7.26% | 6.60% | |
72 Outperform | $649.79M | 21.41 | 4.64% | 4.16% | -13.74% | -59.37% | |
69 Neutral | $1.03B | -217.91 | -0.48% | 4.04% | -24.58% | -110.22% | |
67 Neutral | $2.88B | 48.14 | 2.50% | 1.59% | -13.87% | -82.48% | |
64 Neutral | $602.31M | 31.34 | 4.23% | 3.57% | 14.21% | -36.71% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
46 Neutral | $445.69M | ― | ― | ― | ― | ― |
* Industrials Sector Average
SB
Safe Bulkers
6.44
2.73
73.58%
ESEA
Euroseas
62.99
36.85
140.96%
GNK
Genco Shipping
23.60
9.76
70.51%
SBLK
Star Bulk Carriers
24.92
9.43
60.88%
PANL
Pangaea Logistics Solutions
9.10
4.02
79.13%
CMDB
Costamare Bulkers Holdings Limited
18.35
4.85
35.93%
Safe Bulkers Corporate Events
Safe Bulkers Declares Quarterly Dividends on Series C and D Preferred Shares
Jan 2, 2026
On January 2, 2026, Monaco-based Safe Bulkers, Inc. announced that its board of directors declared quarterly cash dividends of $0.50 per share on both its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares and its 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares for the period from October 30, 2025 to January 29, 2026. The dividends are scheduled to be paid on January 30, 2026 to shareholders of record as of January 16, 2026, underscoring the company’s ongoing capital return to preferred shareholders, while the board reiterated that future dividends will remain subject to factors including earnings, financial condition, financing capacity, debt covenants and broader global economic conditions.
The most recent analyst rating on (SB) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Safe Bulkers stock, see the SB Stock Forecast page.
Safe Bulkers Initiates 10 Million Share Repurchase Program
Dec 1, 2025
On December 1, 2025, Safe Bulkers, Inc. announced a new stock repurchase program authorizing the purchase of up to 10 million shares of its common stock. This initiative represents approximately 9.8% of the company’s outstanding shares and 20% of its public float, aiming to enhance shareholder value. The program will be funded through existing cash resources and may be modified or terminated at any time, reflecting the company’s strategic flexibility in managing its capital structure.
The most recent analyst rating on (SB) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Safe Bulkers stock, see the SB Stock Forecast page.
Safe Bulkers Announces Q3 2025 Financial Results and Dividend
Nov 26, 2025
On November 25, 2025, Safe Bulkers, Inc. announced its unaudited financial results for the third quarter of 2025, reporting net revenues of $73.1 million and a net income of $17.8 million. The company also declared a cash dividend of $0.05 per share of common stock, reflecting its commitment to returning value to shareholders.
The most recent analyst rating on (SB) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Safe Bulkers stock, see the SB Stock Forecast page.
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.