Between 2023 and 2028, dry bulk shipping revenue is expected to grow by $3.64 billion at a CAGR of 4.09%. As the market expands, there’s significant potential for dry bulk shipping companies.
And what better company is there than the largest dry bulk company in the US? Saqib Iqbal, a financial analyst at Trading.biz, found that, surprisingly, this company is undervalued by more than 50%.
- Star Bulk Carriers (NASDAQ: SBLK) is undervalued by over 50% with a 20% upside potential.
- The recent merger makes SBLK the US’s largest dry bulk shipping company.
- Dry bulk shipping revenue is projected to grow significantly by 2028.
He says, “Star Bulk Carriers (NASDAQ: SBLK) is truly an undervalued gem with 20% upside potential. The combination of a successful merger, robust demand, a juicy dividend yield of 5.84%, and beneficial external factors makes SBLK an ideal value opportunity.
Recently, a merger between Eagle Bulk Shipping and the company was completed, resulting in a $2.1 billion all-stock deal. In this way, SBLK has become the largest dry bulk shipping company in the US.
Based on the company’s stats, its P/E ratio is currently 13.88, lower than the market’s 40.97 and the marine shipping industry’s 17.18. Star Bulk Carriers (NASDAQ: SBLK) is looking good regarding earnings.
Compared to an industry average of 28.66% and a market average of 17.9%, forecasts point to a 100.85% growth per year.
According to Saqib, geopolitical unrest, such as the recent Middle East crisis, boosts demand for shipping miles, resulting in profits for shipping businesses. And Star Bulk is at the forefront of this.
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