Eagle Story

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EGLE -- USA Stock  

USD 16.65  0.43  2.65%

The next fiscal quarter end is expected on the 30th of September 2020. The stock just had it stock split. Eagle Bulk has reported 1 for 7 split on 15th of September 2020. Eagle Bulk Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 55.96 Million. The current year Average Equity is expected to grow to about 489.6 M, whereas Free Cash Flow is forecasted to decline to (162.7 M). As many investors are getting excited about industrials space, it is fair to digest Eagle Bulk Shipping as an investment option. We will evaluate why recent Eagle Bulk price moves suggest a bounce in October.
Published over a month ago
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How much will Eagle Bulk owe in October?
The company currently holds 539.41 M in liabilities with Debt to Equity (D/E) ratio of 1.18, which is about average as compared to similar companies. Eagle Bulk Shipping has a current ratio of 1.57, which is within standard range for the sector. Our investment recommendation module complements current analysts and expert consensus on Eagle Bulk. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
Eagle Bulk financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Eagle Bulk, including all of Eagle Bulk's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Eagle Bulk assets, the company is considered highly leveraged. Understanding the composition and structure of overall Eagle Bulk debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Eagle Total Liabilities

Eagle Bulk Shipping liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Eagle Bulk Shipping has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Eagle Bulk balance sheet include debt obligations and money owed to different Eagle Bulk vendors, workers, and loan providers. Below is the chart of Eagle short long-term liabilities accounts currently reported on its balance sheet.
You can use Eagle Bulk Shipping financial leverage analysis tool to get a better grip on understanding its financial position

How important is Eagle Bulk's Liquidity

Eagle Bulk financial leverage refers to using borrowed capital as a funding source to finance Eagle Bulk Shipping ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Eagle Bulk financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Eagle Bulk's total debt and its cash.

What is driving Eagle Bulk Investor Appetite?

The latest price surge of Eagle Bulk Shipping could raise concerns from shareholders as the firm it trading at a share price of 23.27 on slow start in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.59. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Eagle Bulk partners.

Liabilities Breakdown

121.7 M
Current Liabilities
499.6 M
Long-Term Liabilities
Total Liabilities593.35 Million
Current Liabilities121.67 Million
Long-Term Liabilities499.63 Million

Another 3 percent surge for Eagle Bulk

The jensen alpha is down to 0.72 as of today. As of the 19th of September, Eagle Bulk shows the Coefficient Of Variation of 814.25, mean deviation of 3.29, and Downside Deviation of 4.12. Eagle Bulk Shipping technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Eagle Bulk Shipping, which can be compared to its rivals. Please confirm Eagle Bulk Shipping coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to decide if Eagle Bulk Shipping is priced favorably, providing market reflects its regular price of 23.27 per share. Given that Eagle Bulk has jensen alpha of 0.724, we urge you to verify Eagle Bulk Shipping's prevailing market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Eagle Bulk Shipping

Although many other companies within the marine shipping industry are still a little expensive, even after the recent corrections, Eagle Bulk may offer a potential longer-term growth to shareholders. The bottom line, as of the 19th of September 2020, we believe that at this point, Eagle Bulk is overvalued with below average probability of bankruptcy within the next 2 years. Our primary buy-hold-sell advice on the firm is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Eagle Bulk Shipping. Please refer to our Terms of Use for any information regarding our disclosure principles.

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