Safe Bulkers Inc Common Stock ($0.001 par value) (SB)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Safe Bulkers as a cyclical asset play, not a franchise. It owns and operates 45 dry bulk vessels—8 Panamax, 12 Kamsarmax, 17 post-Panamax, and 8 Capesize—with 4,559,000 deadweight tons, carrying coal, grain, and iron ore. That business has almost no pricing moat: rates are set by global supply and demand, and a fleet is a commodity asset. Still, the latest reported quarter, fiscal Q2 2026, was strong: revenue of $87.5 million, net income of $35.2 million, and a 40.20% net margin. The trailing figures show free cash flow of $61.3 million, a 9.2% free cash flow yield, a 10.32% return on equity, and a Piotroski F-Score of 8/9. Debt to equity is 0.59, which is manageable but not trivial in a capital-intensive industry. The red flag is the Altman Z-Score of 0.86, suggesting financial distress risk if rates fall. At the 2026-10-13 close of $8.66, the market cap is $669.2 million. FairStock calculations show a P/E of 11.25, P/B of 1.01, EV/EBITDA of 9.91, and a Graham Number of $12.17, giving a 28.84% margin of safety. The 3.27% dividend yield is a modest return while waiting. Growth is the hard part: the latest quarter’s $35.2 million profit on $87.5 million revenue shows strong cyclical earning power, but I do not treat that as durable growth. FairStock’s PEG ratio of 0.01 looks optically absurd and likely reflects an unsustainable cyclical profit rebound. I would want a larger discount because the moat is absent and the balance sheet has cyclical risk, but the price is not demanding relative to current cash generation and book value.

In plain English: Safe Bulkers owns and runs dry bulk ships that carry coal, grain, and iron ore around the world. In the latest reported quarter, fiscal Q2 2026, it earned $87.5 million of revenue and $35.2 million of net income, so the business looks profitable right now. At the 2026-10-13 close of $8.66, the shares look roughly fair to moderately cheap compared with the company’s accounting value and a conservative valuation estimate, but shipping is a boom-and-bust industry.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer