Star Bulk Carriers: Do Not Get Fooled By The Share Repurchase Announcements

Mining The Data
64 Followers
(20min)

Summary

  • Star Bulk operates a large, young fleet, but Q1 2025 results highlight fragile profitability despite merger synergies and cost savings.
  • Valuation is unattractive compared to peers, with EV/EBITDA and share price/scrap value ratios both not compelling.
  • Continuous share dilution is a major red flag, as rising outstanding shares erode potential returns and dividends fail to offset this trend.
  • There is nothing attractive right now in SBLK, and I do not recommend purchasing shares at the current price. To me, this is a HOLD.

Loading grain into sea cargo vessel in seaport from silos of grain storage. Aerial view

sandsun

You may have been attracted by Star Bulk's (NASDAQ:SBLK) latest share repurchase announcement made a few days ago, but a close analysis suggests that it is actually not the right time to be a buyer! The management team's dilutive policy coupled

This article was written by

64 Followers
Trader of energy commodities for a living - 20 years of experience. Investor in equities since 1996. Strongly rely on analytical analysis for investment choices.

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.

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