Intrinsic value of Star Bulk Carriers - SBLK

Previous Close

$9.25

  Intrinsic Value

$4.24

stock screener

  Rating & Target

str. sell

-54%

Previous close

$9.25

 
Intrinsic value

$4.24

 
Up/down potential

-54%

 
Rating

str. sell

We calculate the intrinsic value of SBLK stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  49.50
  45.05
  41.05
  37.44
  34.20
  31.28
  28.65
  26.28
  24.16
  22.24
  20.52
  18.96
  17.57
  16.31
  15.18
  14.16
  13.25
  12.42
  11.68
  11.01
  10.41
  9.87
  9.38
  8.94
  8.55
  8.19
  7.88
  7.59
  7.33
  7.10
Revenue, $m
  496
  720
  1,015
  1,396
  1,873
  2,458
  3,163
  3,994
  4,959
  6,062
  7,305
  8,691
  10,218
  11,884
  13,689
  15,627
  17,697
  19,895
  22,219
  24,665
  27,233
  29,921
  32,728
  35,655
  38,704
  41,875
  45,173
  48,601
  52,163
  55,864
Variable operating expenses, $m
  740
  1,073
  1,514
  2,081
  2,792
  3,666
  4,716
  5,955
  7,394
  9,038
  10,892
  12,958
  15,235
  17,720
  20,410
  23,300
  26,386
  29,664
  33,128
  36,776
  40,605
  44,612
  48,798
  53,162
  57,707
  62,436
  67,353
  72,464
  77,774
  83,293
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  740
  1,073
  1,514
  2,081
  2,792
  3,666
  4,716
  5,955
  7,394
  9,038
  10,892
  12,958
  15,235
  17,720
  20,410
  23,300
  26,386
  29,664
  33,128
  36,776
  40,605
  44,612
  48,798
  53,162
  57,707
  62,436
  67,353
  72,464
  77,774
  83,293
Operating income, $m
  -244
  -353
  -499
  -685
  -920
  -1,207
  -1,553
  -1,961
  -2,435
  -2,976
  -3,587
  -4,267
  -5,017
  -5,835
  -6,721
  -7,673
  -8,689
  -9,769
  -10,909
  -12,111
  -13,371
  -14,691
  -16,070
  -17,507
  -19,004
  -20,561
  -22,180
  -23,863
  -25,612
  -27,429
EBITDA, $m
  -120
  -175
  -246
  -339
  -454
  -596
  -767
  -969
  -1,203
  -1,471
  -1,772
  -2,108
  -2,479
  -2,883
  -3,321
  -3,791
  -4,293
  -4,827
  -5,390
  -5,984
  -6,607
  -7,259
  -7,940
  -8,650
  -9,390
  -10,159
  -10,959
  -11,791
  -12,655
  -13,553
Interest expense (income), $m
  48
  55
  79
  110
  152
  206
  273
  356
  455
  573
  709
  865
  1,040
  1,236
  1,451
  1,687
  1,941
  2,215
  2,508
  2,818
  3,146
  3,492
  3,854
  4,234
  4,630
  5,043
  5,474
  5,922
  6,387
  6,871
  7,374
Earnings before tax, $m
  -299
  -432
  -609
  -837
  -1,125
  -1,480
  -1,909
  -2,416
  -3,007
  -3,685
  -4,452
  -5,307
  -6,253
  -7,287
  -8,408
  -9,614
  -10,904
  -12,276
  -13,727
  -15,257
  -16,863
  -18,545
  -20,303
  -22,137
  -24,047
  -26,035
  -28,102
  -30,250
  -32,483
  -34,804
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -299
  -432
  -609
  -837
  -1,125
  -1,480
  -1,909
  -2,416
  -3,007
  -3,685
  -4,452
  -5,307
  -6,253
  -7,287
  -8,408
  -9,614
  -10,904
  -12,276
  -13,727
  -15,257
  -16,863
  -18,545
  -20,303
  -22,137
  -24,047
  -26,035
  -28,102
  -30,250
  -32,483
  -34,804

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,852
  4,137
  5,835
  8,020
  10,763
  14,129
  18,177
  22,955
  28,500
  34,838
  41,986
  49,948
  58,723
  68,301
  78,670
  89,811
  101,707
  114,341
  127,695
  141,756
  156,513
  171,959
  188,093
  204,916
  222,435
  240,663
  259,615
  279,314
  299,785
  321,058
Adjusted assets (=assets-cash), $m
  2,852
  4,137
  5,835
  8,020
  10,763
  14,129
  18,177
  22,955
  28,500
  34,838
  41,986
  49,948
  58,723
  68,301
  78,670
  89,811
  101,707
  114,341
  127,695
  141,756
  156,513
  171,959
  188,093
  204,916
  222,435
  240,663
  259,615
  279,314
  299,785
  321,058
Revenue / Adjusted assets
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
Average production assets, $m
  2,687
  3,898
  5,498
  7,557
  10,141
  13,313
  17,127
  21,628
  26,853
  32,825
  39,559
  47,061
  55,329
  64,354
  74,123
  84,621
  95,830
  107,733
  120,315
  133,564
  147,468
  162,021
  177,223
  193,074
  209,581
  226,755
  244,612
  263,173
  282,460
  302,504
Working capital, $m
  26
  38
  54
  74
  99
  130
  168
  212
  263
  321
  387
  461
  542
  630
  725
  828
  938
  1,054
  1,178
  1,307
  1,443
  1,586
  1,735
  1,890
  2,051
  2,219
  2,394
  2,576
  2,765
  2,961
Total debt, $m
  1,457
  2,041
  2,814
  3,808
  5,056
  6,588
  8,429
  10,603
  13,126
  16,010
  19,262
  22,885
  26,878
  31,236
  35,953
  41,023
  46,436
  52,184
  58,260
  64,658
  71,372
  78,400
  85,741
  93,395
  101,367
  109,660
  118,284
  127,247
  136,561
  146,240
Total liabilities, $m
  1,298
  1,882
  2,655
  3,649
  4,897
  6,429
  8,271
  10,444
  12,967
  15,851
  19,103
  22,726
  26,719
  31,077
  35,795
  40,864
  46,277
  52,025
  58,101
  64,499
  71,213
  78,241
  85,582
  93,237
  101,208
  109,502
  118,125
  127,088
  136,402
  146,081
Total equity, $m
  1,555
  2,255
  3,180
  4,371
  5,866
  7,700
  9,907
  12,510
  15,532
  18,987
  22,882
  27,222
  32,004
  37,224
  42,875
  48,947
  55,430
  62,316
  69,594
  77,257
  85,299
  93,718
  102,510
  111,679
  121,227
  131,161
  141,490
  152,226
  163,383
  174,976
Total liabilities and equity, $m
  2,853
  4,137
  5,835
  8,020
  10,763
  14,129
  18,178
  22,954
  28,499
  34,838
  41,985
  49,948
  58,723
  68,301
  78,670
  89,811
  101,707
  114,341
  127,695
  141,756
  156,512
  171,959
  188,092
  204,916
  222,435
  240,663
  259,615
  279,314
  299,785
  321,057
Debt-to-equity ratio
  0.940
  0.910
  0.880
  0.870
  0.860
  0.860
  0.850
  0.850
  0.850
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
Adjusted equity ratio
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -299
  -432
  -609
  -837
  -1,125
  -1,480
  -1,909
  -2,416
  -3,007
  -3,685
  -4,452
  -5,307
  -6,253
  -7,287
  -8,408
  -9,614
  -10,904
  -12,276
  -13,727
  -15,257
  -16,863
  -18,545
  -20,303
  -22,137
  -24,047
  -26,035
  -28,102
  -30,250
  -32,483
  -34,804
Depreciation, amort., depletion, $m
  123
  179
  252
  347
  465
  611
  786
  992
  1,232
  1,506
  1,815
  2,159
  2,538
  2,952
  3,400
  3,882
  4,396
  4,942
  5,519
  6,127
  6,765
  7,432
  8,129
  8,857
  9,614
  10,402
  11,221
  12,072
  12,957
  13,876
Funds from operations, $m
  -176
  -253
  -357
  -491
  -660
  -869
  -1,123
  -1,424
  -1,776
  -2,179
  -2,637
  -3,149
  -3,715
  -4,335
  -5,008
  -5,733
  -6,509
  -7,334
  -8,208
  -9,130
  -10,098
  -11,113
  -12,174
  -13,280
  -14,433
  -15,633
  -16,881
  -18,178
  -19,526
  -20,927
Change in working capital, $m
  9
  12
  16
  20
  25
  31
  37
  44
  51
  58
  66
  73
  81
  88
  96
  103
  110
  117
  123
  130
  136
  142
  149
  155
  162
  168
  175
  182
  189
  196
Cash from operations, $m
  -185
  -265
  -372
  -511
  -685
  -901
  -1,160
  -1,468
  -1,827
  -2,238
  -2,703
  -3,222
  -3,796
  -4,423
  -5,103
  -5,835
  -6,618
  -7,451
  -8,331
  -9,260
  -10,235
  -11,256
  -12,322
  -13,435
  -14,595
  -15,801
  -17,056
  -18,360
  -19,715
  -21,123
Maintenance CAPEX, $m
  -82
  -123
  -179
  -252
  -347
  -465
  -611
  -786
  -992
  -1,232
  -1,506
  -1,815
  -2,159
  -2,538
  -2,952
  -3,400
  -3,882
  -4,396
  -4,942
  -5,519
  -6,127
  -6,765
  -7,432
  -8,129
  -8,857
  -9,614
  -10,402
  -11,221
  -12,072
  -12,957
New CAPEX, $m
  -890
  -1,211
  -1,600
  -2,059
  -2,584
  -3,172
  -3,814
  -4,502
  -5,224
  -5,972
  -6,734
  -7,502
  -8,268
  -9,025
  -9,769
  -10,497
  -11,209
  -11,903
  -12,582
  -13,248
  -13,904
  -14,554
  -15,201
  -15,851
  -16,507
  -17,174
  -17,857
  -18,560
  -19,288
  -20,043
Cash from investing activities, $m
  -972
  -1,334
  -1,779
  -2,311
  -2,931
  -3,637
  -4,425
  -5,288
  -6,216
  -7,204
  -8,240
  -9,317
  -10,427
  -11,563
  -12,721
  -13,897
  -15,091
  -16,299
  -17,524
  -18,767
  -20,031
  -21,319
  -22,633
  -23,980
  -25,364
  -26,788
  -28,259
  -29,781
  -31,360
  -33,000
Free cash flow, $m
  -1,157
  -1,599
  -2,151
  -2,821
  -3,616
  -4,537
  -5,585
  -6,755
  -8,043
  -9,442
  -10,943
  -12,539
  -14,222
  -15,986
  -17,824
  -19,733
  -21,709
  -23,750
  -25,856
  -28,027
  -30,265
  -32,574
  -34,956
  -37,416
  -39,958
  -42,589
  -45,315
  -48,141
  -51,075
  -54,124
Issuance/(repayment) of debt, $m
  429
  585
  773
  994
  1,248
  1,532
  1,842
  2,174
  2,523
  2,884
  3,252
  3,623
  3,993
  4,358
  4,718
  5,069
  5,413
  5,748
  6,076
  6,398
  6,714
  7,028
  7,341
  7,654
  7,971
  8,294
  8,623
  8,963
  9,314
  9,679
Issuance/(repurchase) of shares, $m
  811
  1,132
  1,534
  2,028
  2,620
  3,315
  4,115
  5,020
  6,029
  7,140
  8,347
  9,647
  11,035
  12,507
  14,059
  15,686
  17,388
  19,161
  21,005
  22,920
  24,906
  26,964
  29,096
  31,305
  33,595
  35,969
  38,431
  40,986
  43,640
  46,397
Cash from financing (excl. dividends), $m  
  1,240
  1,717
  2,307
  3,022
  3,868
  4,847
  5,957
  7,194
  8,552
  10,024
  11,599
  13,270
  15,028
  16,865
  18,777
  20,755
  22,801
  24,909
  27,081
  29,318
  31,620
  33,992
  36,437
  38,959
  41,566
  44,263
  47,054
  49,949
  52,954
  56,076
Total cash flow (excl. dividends), $m
  84
  118
  156
  201
  252
  309
  372
  439
  509
  582
  656
  731
  805
  879
  952
  1,023
  1,092
  1,160
  1,226
  1,291
  1,355
  1,418
  1,481
  1,544
  1,608
  1,673
  1,740
  1,808
  1,879
  1,953
Retained Cash Flow (-), $m
  -811
  -1,132
  -1,534
  -2,028
  -2,620
  -3,315
  -4,115
  -5,020
  -6,029
  -7,140
  -8,347
  -9,647
  -11,035
  -12,507
  -14,059
  -15,686
  -17,388
  -19,161
  -21,005
  -22,920
  -24,906
  -26,964
  -29,096
  -31,305
  -33,595
  -35,969
  -38,431
  -40,986
  -43,640
  -46,397
Prev. year cash balance distribution, $m
  46
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -682
  -1,014
  -1,378
  -1,827
  -2,368
  -3,006
  -3,743
  -4,582
  -5,520
  -6,558
  -7,691
  -8,916
  -10,230
  -11,628
  -13,107
  -14,664
  -16,296
  -18,002
  -19,780
  -21,629
  -23,551
  -25,546
  -27,615
  -29,761
  -31,987
  -34,296
  -36,691
  -39,178
  -41,761
  -44,445
Discount rate, %
  7.30
  7.67
  8.05
  8.45
  8.87
  9.32
  9.78
  10.27
  10.79
  11.32
  11.89
  12.49
  13.11
  13.77
  14.45
  15.18
  15.93
  16.73
  17.57
  18.45
  19.37
  20.34
  21.35
  22.42
  23.54
  24.72
  25.96
  27.25
  28.62
  30.05
PV of cash for distribution, $m
  -635
  -875
  -1,093
  -1,321
  -1,548
  -1,761
  -1,948
  -2,096
  -2,196
  -2,243
  -2,235
  -2,173
  -2,062
  -1,911
  -1,730
  -1,529
  -1,320
  -1,112
  -913
  -732
  -572
  -435
  -322
  -232
  -162
  -110
  -72
  -46
  -28
  -17
Current shareholders' claim on cash, %
  47.3
  23.2
  11.8
  6.2
  3.3
  1.8
  1.0
  0.6
  0.4
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Star Bulk Carriers Corp. is an international shipping company. The Company owns and operates a fleet of dry bulk carrier vessels. As of December 31, 2016, the Company's fleet included 73 vessels consisting primarily of Newcastlemax and Capesize, as well as Kamsarmax, Ultramax and Supramax vessels with a carrying capacity between 52,055 and 209,537 deadweight tonnage (dwt). The Company's vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes across the world. The Company's fleet, which emphasizes Capesize vessels, primarily transports minerals from the Americas and Australia to East Asia, particularly China, as well as Japan, South Korea, Taiwan, Indonesia and Malaysia. The Company's Supramax vessels carry minerals, grain products and steel between the Americas, Europe, Africa, Australia and Indonesia, and from these areas to China, Japan, South Korea, Taiwan, the Philippines and Malaysia.

FINANCIAL RATIOS  of  Star Bulk Carriers (SBLK)

Valuation Ratios
P/E Ratio -3.4
Price to Sales 2.4
Price to Book 0.5
Price to Tangible Book
Price to Cash Flow -15.9
Price to Free Cash Flow -1.2
Growth Rates
Sales Growth Rate -5.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -16.5%
Cap. Spend. - 3 Yr. Gr. Rate 25.3%
Financial Strength
Quick Ratio 30
Current Ratio 0.4
LT Debt to Equity 91.1%
Total Debt to Equity 91.7%
Interest Coverage -2
Management Effectiveness
Return On Assets -5.1%
Ret/ On Assets - 3 Yr. Avg. -8.6%
Return On Total Capital -7.5%
Ret/ On T. Cap. - 3 Yr. Avg. -10.3%
Return On Equity -14.2%
Return On Equity - 3 Yr. Avg. -18.6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 26.1%
Gross Margin - 3 Yr. Avg. 27.1%
EBITDA Margin -10.8%
EBITDA Margin - 3 Yr. Avg. -45.9%
Operating Margin -50.5%
Oper. Margin - 3 Yr. Avg. -78.1%
Pre-Tax Margin -69.4%
Pre-Tax Margin - 3 Yr. Avg. -91.1%
Net Profit Margin -69.4%
Net Profit Margin - 3 Yr. Avg. -91.1%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

SBLK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SBLK stock intrinsic value calculation we used $331.976 million for the last fiscal year's total revenue generated by Star Bulk Carriers. The default revenue input number comes from 0001 income statement of Star Bulk Carriers. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SBLK stock valuation model: a) initial revenue growth rate of 49.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.3%, whose default value for SBLK is calculated based on our internal credit rating of Star Bulk Carriers, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Star Bulk Carriers.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SBLK stock the variable cost ratio is equal to 149.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for SBLK stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Star Bulk Carriers.

Corporate tax rate of 27% is the nominal tax rate for Star Bulk Carriers. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SBLK stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SBLK are equal to 541.5%.

Life of production assets of 21.8 years is the average useful life of capital assets used in Star Bulk Carriers operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SBLK is equal to 5.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1088.052 million for Star Bulk Carriers - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 64.16 million for Star Bulk Carriers is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Star Bulk Carriers at the current share price and the inputted number of shares is $0.6 billion.

RELATED COMPANIES Price Int.Val. Rating
SHIP Seanergy Marit 0.750 5.03  str.buy
GOGL Golden Ocean G 6.68 2.67  str.sell
ESEA Euroseas 1.65 1.04  sell
DSX Diana Shipping 3.22 1.45  str.sell
GLBS Globus Maritim 5.63 0.34  hold

COMPANY NEWS

▶ Ahoy, Matey! Navios Maritime Stock Upgraded   [Oct-17-18 02:49PM  Motley Fool]
▶ Who Owns Star Bulk Carriers Corp (NASDAQ:SBLK)?   [Aug-31-18 09:40AM  Simply Wall St.]
▶ New Strong Buy Stocks for August 8th   [Aug-08-18 11:22AM  Zacks]
▶ Star Bulk Carriers: 2Q Earnings Snapshot   [07:28PM  Associated Press]
▶ 5 Stocks With Amazingly High Profitability to Own Now   [Aug-01-18 10:38AM  InvestorPlace]
▶ Star Bulk Carriers: 1Q Earnings Snapshot   [Jun-11-18 05:57PM  Associated Press]
▶ 5 Best Profitable Stocks to Garner Stunning Returns   [May-29-18 01:25PM  InvestorPlace]
▶ Star Bulk Carriers Corps (NASDAQ:SBLK) Path To Profitability   [May-22-18 06:59AM  Simply Wall St.]
▶ Star Bulk Carriers beats 4Q profit forecasts   [Feb-28-18 02:49PM  Associated Press]
▶ Star Bulk Announces Debt Principal Repayments From Q1 2018   [Dec-28-17 04:05PM  GlobeNewswire]
▶ Star Bulk Carriers reports 3Q loss   [Nov-20-17 05:06AM  Associated Press]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.