Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drybulk shipper Safe Bulkers (NYSE: SB ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Safe Bulkers' business and see what CAPS investors are saying about the stock right now.
Safe Bulkers facts
|Headquarters (Founded)||Athens, Greece (2007)|
|Market Cap||$513.2 million|
|Trailing-12-Month Revenue||$152.3 million|
Chairman/CEO Polys Hajioannou
CFO Konstantinos Adamopoulos
|Return on Capital (Average, Past 2 Years)||18.8%|
|Cash/Debt||$136.8 million / $497.2 million|
DryShips (Nasdaq: DRYS )
Eagle Bulk Shipping (Nasdaq: EGLE )
Navios Maritime (NYSE: NM )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 89% of the 157 members who have rated Safe Bulkers believe the stock will outperform the S&P 500 going forward. These bulls include All-Star mrindependent, who is ranked in the top 2% of our community, and KnockoutMouse.
Just last month, mrindependent highlighted stock's cheapish price:
Safe Bulkers qualifies for my best 12 low price value stocks screen, which looks for low PE's, high roes, low p/bv and reasonable price trends. Balance sheet seems solvent. Management looks savvy based on its success navigating the recent weakness in the shipping industry.
Safe Bulkers' industry-lagging valuation and industry-topping profitability drive its four-star CAPS rating. When you couple Safe Bulkers' paltry forward P/E of 4.9 with a three-year average return on capital of 18.8% -- much higher than that of rivals DryShips (7.2%), Eagle Bulk (3.6%), and Navios (2.8%), as well as the likes of Diana Shipping (NYSE: DSX ) (9.7%) and Genco Shipping (NYSE: GNK ) (7%) -- the stock is clearly worth looking into.
CAPS member KnockoutMouse elaborates:
It's hard to find good investments among the dry bulk shippers, but here is one that may be worth a bet. Safe Bulkers has a high ROIC and profit margin which indicates it is efficient and well managed. It carries some debt, but appears to manage it well and has adequate cash flow to fund both its operations and its generous dividend payout. Also, [Safe Bulkers] has a young fleet of mostly panamax and post-panamax size vessels, which command the best rates.
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