Should I exit my Safe Bulkers (NYSE:SB) position?
 | By Vlad Skutelnik | Macroaxis Story |
Safe Bulkers is scheduled to announce its earnings today. The stock is undergoing an active upward rally. As many millenniums are trying to avoid industrials space, it makes sense to go over Safe Bulkers a little further and try to understand its current market patterns. Let's analyze the possibilities of Safe Bulkers maintaining its debt level in March.
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Reviewed by Raphi Shpitalnik
The company reports 608.85 M of total liabilities with total debt to equity ratio (D/E) of 1.33, which is normal for its line of buisiness. Safe Bulkers holds a performance score of 28 on a scale of zero to a hundred. The entity has a beta of 1.0165, which indicates a somewhat significant risk relative to the market. Let's try to break down what Safe Bulkers's beta means in this case. Safe Bulkers returns are very sensitive to returns on the market. As the market goes up or down, Safe Bulkers is expected to follow. Although it is essential to pay attention to Safe Bulkers current price movements, it is also good to be reasonable about what you can do with equity historical returns. Our philosophy towards measuring future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Safe Bulkers expected return of 1.77 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Safe Bulkers information ratio, as well as the relationship between the value at risk and expected short fall to analyze future returns on Safe Bulkers. Safe Bulkers financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Safe Bulkers, including all of Safe Bulkers's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Safe Bulkers assets, the company is considered highly leveraged. Understanding the composition and structure of overall Safe Bulkers debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Safe Total Debt
Safe Bulkers liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Safe Bulkers has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Safe Bulkers balance sheet include debt obligations and money owed to different Safe Bulkers vendors, workers, and loan providers. Below is the chart of Safe main long-term debt accounts currently reported on its balance sheet. You can use Safe Bulkers financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Safe Bulkers's Liquidity
Safe Bulkers financial leverage refers to using borrowed capital as a funding source to finance Safe Bulkers ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Safe Bulkers financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Safe Bulkers' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Safe Bulkers' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Safe Bulkers's total debt and its cash.
Breaking down Safe Bulkers Further
Safe Bulkers generated the yearly revenue of 199.18 M. Annual Net Loss to common stockholders was (28.86 M) with gross profit of 116.08 M.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Safe Bulkers. Please refer to our Terms of Use for any information regarding our disclosure principles.