Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Greek-based Star Bulk Carriers Corp. (NASDAQ: SBLK) operates internationally. Its fleet of dry bulk carrier boats is owned and operated by it. Major bulks including iron ore, coal, and grain are transported by the company's boats, as well as lesser bulks like bauxite, fertiliser, and steel goods. Its fleet comprises of 128 ships with 52,247 to 209,537 dwt carrying capacity. The fleet of the company consists of ships that range in size from Newcastlemax to Capesize to Panamax, Post Panamax, Kamsarmax, Ultramax, and Supramax, with a total carrying capacity of about 14 million deadweight tonnes (dwt) and an average age of almost ten years.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 7.72% in the last three months as well as by 16.57% in past three months.
• The stock is leaning towards its lower band of its 52-week range of USD 27.82 and 52-week low price of USD 16.85. Post the announcement of Q1FY23 results the stock corrected by 8.25% due to lower rate of dry bulk freight across the global economies.
• The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 39.23.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

These positive indicators suggest that SBLK has effectively managed its financial position by reducing its reliance on debt and improving its profitability. The lower debt/equity ratio signifies a stronger financial structure and reduced risk for the company. Additionally, the higher EBITDA margin indicates that SBLK is efficiently managing its costs and generating a greater return on its operating activities compared to its industry peers. This demonstrates the company's ability to optimize its operations and maximize its profitability. Overall, these favorable outcomes reflect SBLK's effective risk management and operational efficiency, positioning it well for future growth and stability.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~42.54% of the total shareholding, signifying diverse shareholding. Oaktree Capital Management, L.P. and Alliance Bernstein L.P. are the biggest shareholders, holding the maximum stake in the company at ~25.34% and ~6.54 %, respectively.

1.5 Freight Index Analysis:

The Baltic Dry Index is a measure of shipping rates for dry bulk commodities that indicates global demand for commodities and shipping capacity. It has historically been correlated with the share price of SBLK, a shipping company. When the BDI index price is high, SBLK's earnings and share price may be positively impacted due to strong demand and potentially higher shipping rates. Conversely, when the BDI index price is low, SBLK's earnings and share price may be negatively affected. Recently, the BDI index has increased following a low point in mid-February, which may indicate a positive financial announcement for SBLK's Q2FY23.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q1FY23:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 7.72% in the last three months as well as by 16.57% in past three months.
• The stock is leaning towards its lower band of its 52-week range of USD 27.82 and 52-week low price of USD 16.85. Post the announcement of Q1FY23 results the stock corrected by 8.25% due to lower rate of dry bulk freight across the global economies.
• The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 39.23.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 05, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.