Safe Bulkers Story

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SB -- USA Stock  

USD 2.75  0.13  4.51%

Safe Bulkers is scheduled to announce its earnings today. The stock is undergoing an active upward rally. As many millenniums are trying to avoid industrials space, it makes sense to go over Safe Bulkers a little further and try to understand its current market patterns. Let's analyze the possibilities of Safe Bulkers maintaining its debt level in March.
Published over a week ago
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Should I exit my Safe Bulkers (NYSE:SB) position?
The company reports 608.85 M of total liabilities with total debt to equity ratio (D/E) of 1.33, which is normal for its line of buisiness. Safe Bulkers holds a performance score of 28 on a scale of zero to a hundred. The entity has a beta of 1.0165, which indicates a somewhat significant risk relative to the market. Let's try to break down what Safe Bulkers's beta means in this case. Safe Bulkers returns are very sensitive to returns on the market. As the market goes up or down, Safe Bulkers is expected to follow. Although it is essential to pay attention to Safe Bulkers current price movements, it is also good to be reasonable about what you can do with equity historical returns. Our philosophy towards measuring future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Safe Bulkers expected return of 1.77 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Safe Bulkers information ratio, as well as the relationship between the value at risk and expected short fall to analyze future returns on Safe Bulkers.
Safe Bulkers financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Safe Bulkers, including all of Safe Bulkers'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 Safe Bulkers assets, the company is considered highly leveraged. Understanding the composition and structure of overall Safe Bulkers 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.

How important is Safe Bulkers's Liquidity

Safe Bulkers financial leverage refers to using borrowed capital as a funding source to finance Safe Bulkers ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Safe Bulkers 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 Safe Bulkers's total debt and its cash.

How Safe Bulkers utilizes its cash?

To perform a cash flow analysis of Safe Bulkers, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Safe Bulkers is receiving and how much cash it distributes out in a given period. The Safe Bulkers cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking down Safe Bulkers Indicators

Safe Bulkers generated the yearly revenue of 199.18 M. Annual Net Loss to common stockholders was (28.86 M) with gross profit of 116.08 M.

Our take on today Safe Bulkers rise

Total risk alpha is down to 1.04. It may suggest a possible volatility slip. Safe Bulkers shows above-average downside volatility for the selected time horizon. We advise investors to inspect Safe Bulkers further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Safe Bulkers future alpha.

Our Conclusion on Safe Bulkers

Whereas some firms under the marine shipping industry are still a bit expensive, Safe Bulkers may offer a potential longer-term growth to investors. In closing, as of the 15th of February 2021, our analysis shows that Safe Bulkers almost mirrors the market. The company is overvalued and projects below average probability of distress for the next 2 years. Our final 30 days 'Buy-vs-Sell' recommendation on the company is Strong 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 Vlad Skutelnik do not own shares of Safe Bulkers. Please refer to our Terms of Use for any information regarding our disclosure principles.

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