SBLKStar Bulk Carriers Corp.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.2×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SBLK?
Star Bulk Carriers Corp. earns 5.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.5 points below what the capital costs: growth destroys value
- Operating margin
- 13%
Operating margin · Marine Shipping median 26% · fiscal year to FY2025
- Cash conversion
- 2.16×
Cash conversion · 1.56× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +6.2%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 52% |
| FY2022 | 42% |
| FY2023 | 25% |
| FY2024 | 30% |
| FY2025 | 13% |
Details›
- Gross marginfiscal year to FY2025
- 99%
- Operating marginfiscal year to FY2025
- 13%
- Net marginfiscal year to FY2025
- 8.1%
- Free cash flow margin
- 20%
- Revenue, trailing twelve months
- $1.04B
- Free cash flow, trailing twelve months
- $212M
- Net income, trailing twelve months
- $84M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.