Star Bulk Is A Buy At Around $22: Here Is Why

Summary

• I estimate a 4Q 2021 TCE per day of $29271 for Star Bulk. Also, I estimate a 4Q 2021 TCE revenue of $333.8 million for the company.
• I estimate that SBLK’s fair value is about $26 per share, an 18.37% upside potential.
• The company’s well-performed capital structure led to growth in cash and liquidities. SBLK was successful in a 35% drop in its adjusted net debt through 2019-2021.
• Comparing the quarterly TCE per day of SBLK, GOGL, and GRIN from1Q 2019 to 4Q 2021, we can see that during 2021, their quarterly TCE per day increasedat almost the same rate.
• According to Star Bulk's dividend policy and dividend calculation formula, I calculate a fourth-quarter dividend per share of $2.

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As a global shipping company, Star Bulk Carriers Corp. (NASDAQ:SBLK) provides transportation services of dry bulk cargoes. I am bullish on SBLK since its financial statements analysis, my stock valuation, and estimations of the company's TCE rates show

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.