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1. Company Snapshot

1.a. Company Description

Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide.The company's vessels transport a range of major bulks, including iron ores, coal, and grains, as well as minor bulks, such as bauxite, fertilizers, and steel products.As of December 31, 2021, it had a fleet of 128 vessels with an aggregate capacity of approximately 14.1 million deadweight tons, including 17 Newcastlemax, 24 Capesize, 7 Post Panamax, 41 Kamsarmax, 2 Panamax, 20 Ultramax, and 17 Supramax vessels.


The company also provides vessel management services.Star Bulk Carriers Corp.was incorporated in 2006 and is based in Marousi, Greece.

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1.b. Last Insights on SBLK

The recent 3-month performance of Star Bulk Carriers Corp. was negatively driven by several factors. The company's Q4 2024 earnings release showed a net profit of $42.4 million, but this was overshadowed by a decline in contracted TCE rates guidance on a QoQ/ YoY basis, worsened by higher expenses and dry docking expenses in FY2025. Additionally, the company's dividend policy changes have reversed the prior optimism surrounding its investment thesis, as management focuses on share repurchases, deleveraging, and fleet renewal. Furthermore, the company's Q4 non-GAAP EPS of $0.34 missed estimates, despite a 17% revenue increase, due to concerns over dividend policy changes and elevated net debt.

1.c. Company Highlights

2. Star Bulk Carriers' Q3 2025 Earnings: A Strong Performance

Star Bulk Carriers reported a net income of $18.5 million and an adjusted net income of $32.4 million, or $0.28 adjusted income per share, for Q3 2025, in line with analyst estimates. The company's adjusted EBITDA was $87 million. The time charter equivalent rate was $16,634 per vessel per day, with combined daily OpEx and net cash general and administrative expenses per vessel per day of $6,421, resulting in a TCE less OpEx and cash G&A of approximately $10,213 per vessel per day.

Publication Date: Nov -20

📋 Highlights
  • Strong Adjusted EBITDA:: Adjusted EBITDA reached $87 million, reflecting robust operational performance.
  • Significant Share Repurchases:: $11.1 million spent on 610,000 shares repurchased in Q3-Q4, enhancing shareholder value.
  • High TCE Margin:: $10,213 per vessel daily (TCE less OpEx and G&A), indicating efficient cost management.
  • Liquidity and Debt Profile:: $454 million cash, $1.028 billion debt, and $570+ million pro forma liquidity, supporting strategic investments.
  • Shareholder Returns:: $2.8 billion in dividends, buybacks, and debt repayment since 2021, including a $0.11/share Q3 dividend.

Financial Performance and Shareholder Returns

The company's financial performance was accompanied by significant shareholder returns. Star Bulk repurchased 250,000 shares for $4.4 million during Q3 and has bought back an additional 360,000 shares for $6.7 million since the beginning of Q4. The Board of Directors declared a dividend per share of $0.11 for Q3, payable on December 18, 2025. Since 2021, the company has returned $13.2 per share in dividends, corresponding to approximately 70% of its current share price, as part of its $2.8 billion efforts in dividends, share buybacks, and debt repayment.

Fleet Composition and Investment Strategy

Star Bulk has been actively renewing its fleet, particularly in the Kamsarmax segment, with three newbuildings set to deliver next year and five more newbuildings. The company is focusing on sub-Cape vessels due to the challenging prices of Capesizes. Petros Pappas noted that the existing Kamsarmax fleet is getting older, and the new vessels have scrubbers, are eco-friendly, and have early delivery dates in 2026 at a competitive price of $35 million. The strategy is to invest in Kamsarmaxes, which can generate similar EBITDA returns to Capesizes.

Valuation and Outlook

With a P/E Ratio of 35.87 and an EV/EBITDA of 10.18, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 20.4%. The Dividend Yield stands at 4.15%, providing a relatively attractive return. The company's strong rate performance in the sub-Cape segment, driven by improved demand fundamentals, supports this outlook. The equity CapEx required for newbuildings has already been covered by proceeds from past vessel sales, positioning Star Bulk for continued growth.

3. NewsRoom

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Star Bulk: Dividends Could Triple Next Quarter, But Share Repurchases Are The Real Value Driver

Nov -20

Source: seekingalpha.com

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Star Bulk Carriers Corp. (SBLK) Q3 2025 Earnings Call Transcript

Nov -19

Source: seekingalpha.com

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This Shipper Nears Buy Point After Q3 Earnings As Industry Outlook Brightens

Nov -19

Source: investors.com

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Star Bulk Carriers (SBLK) Q3 Earnings Match Estimates

Nov -18

Source: zacks.com

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Star Bulk Carriers Corp. Reports Financial Results for the Third Quarter of 2025, and Declares Quarterly Dividend of $0.11 Per Share

Nov -18

Source: globenewswire.com

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Star Bulk Carriers (SBLK) Laps the Stock Market: Here's Why

Nov -11

Source: zacks.com

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Star Bulk Announces Date for the Release of Third Quarter Ended September 30, 2025, Results, Conference Call, and Webcast

Nov -10

Source: globenewswire.com

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Star Bulk Carriers (SBLK) Registers a Bigger Fall Than the Market: Important Facts to Note

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.04%)

6. Segments

Time Charters

Expected Growth: 5%

Strong demand for dry bulk commodities, increasing global trade, and a growing fleet size driven by strategic acquisitions and newbuild deliveries contribute to Star Bulk Carriers Corp.'s 5% growth in Time Charters. Additionally, the company's cost-effective operations, diversified customer base, and favorable charter rates also support this growth.

Voyage Charters

Expected Growth: 3%

Strong demand for dry bulk commodities, particularly iron ore and coal, drives growth in Voyage Charters for Star Bulk Carriers Corp. Additionally, increasing global trade, fleet modernization, and a favorable tanker market contribute to the 3% growth. Furthermore, the company's strategic fleet expansion and cost-saving initiatives also support this growth.

Pool

Expected Growth: 2%

Star Bulk Carriers Corp.'s Pool segment growth is driven by increasing demand for dry bulk shipping, rising commodity prices, and growing global trade. Additionally, the company's modern fleet and operational efficiency enable it to capitalize on market opportunities, while its cost-saving initiatives and strategic partnerships further support growth.

7. Detailed Products

Dry Bulk Cargo Transportation

Star Bulk Carriers Corp. provides dry bulk cargo transportation services, specializing in the transportation of commodities such as iron ore, coal, and grains.

Vessel Management

The company offers vessel management services, including technical management, crew management, and commercial management.

Ship Brokerage

Star Bulk Carriers Corp. provides ship brokerage services, connecting buyers and sellers of dry bulk commodities and vessels.

Vessel Acquisition and Disposal

The company provides services for the acquisition and disposal of vessels, including sale and purchase, chartering, and financing.

8. Star Bulk Carriers Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Star Bulk Carriers Corp. is medium due to the availability of alternative modes of transportation, such as road and rail, which can be used for certain types of cargo. However, the high cost and limited availability of these alternatives reduce the threat.

Bargaining Power Of Customers

The bargaining power of customers for Star Bulk Carriers Corp. is low due to the fragmented nature of the shipping industry, which reduces the negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Star Bulk Carriers Corp. is medium due to the limited number of suppliers of dry bulk cargo ships and the high cost of switching suppliers.

Threat Of New Entrants

The threat of new entrants for Star Bulk Carriers Corp. is low due to the high barriers to entry, including the high cost of purchasing or leasing ships and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry for Star Bulk Carriers Corp. is high due to the highly competitive nature of the shipping industry, with many companies competing for a limited number of contracts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.50%
Debt Cost 7.37%
Equity Weight 57.50%
Equity Cost 9.31%
WACC 8.48%
Leverage 73.92%

11. Quality Control: Star Bulk Carriers Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hafnia

A-Score: 7.6/10

Value: 7.9

Growth: 9.3

Quality: 6.9

Yield: 10.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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BW LPG

A-Score: 7.3/10

Value: 7.0

Growth: 8.6

Quality: 5.4

Yield: 10.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Odfjell

A-Score: 6.8/10

Value: 8.5

Growth: 7.7

Quality: 6.2

Yield: 9.4

Momentum: 6.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Stolt-Nielsen

A-Score: 6.6/10

Value: 8.9

Growth: 6.8

Quality: 5.2

Yield: 10.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Wallenius Wilhelmsen

A-Score: 5.8/10

Value: 9.2

Growth: 8.2

Quality: 7.9

Yield: 6.2

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Star Bulk Carriers

A-Score: 5.5/10

Value: 6.2

Growth: 5.2

Quality: 4.9

Yield: 8.8

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.45$

Current Price

20.45$

Potential

-0.00%

Expected Cash-Flows