This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Eagle Bulk Shipping Downgraded

By TheStreet Ratings Staff
Eagle Bulk Shipping -- Common Stock


Reviewed by TheStreet Ratings on .


TheStreet Ratings reiterates its sell rating on Eagle Bulk Shipping.


Eagle Bulk Shipping's gross profit margin for the fourth quarter of its fiscal year 2011 has significantly increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. Eagle Bulk Shipping has weak liquidity. Currently, the Quick Ratio is 0.58 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.


During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.


Rating: 1 of 5, "D" sell.



INCOME STATEMENT Q4 FY11 Q4 FY10
Net Sales ($mil) 70.01 72.35
EBITDA ($mil) 28.03 0.0
EBIT ($mil) 9.15 14.85
Net Income ($mil) -1.7 3.03


BALANCE SHEET Q4 FY11 Q4 FY10
Cash & Equiv. ($mil) 26.06 129.12
Total Assets ($mil) 1867.26 1896.57
Total Debt ($mil) 1129.48 1151.35
Equity ($mil) 674.18 669.09


PROFITABILITY Q4 FY11 Q4 FY10
Gross Profit Margin 50.52 33.06
EBITDA Margin 40.03 0.0
Operating Margin 13.07 20.53
Sales Turnover 0.17 0.14
Return on Assets -0.79 1.42
Return on Equity -2.2 4.01
DEBT Q4 FY11 Q4 FY10
Current Ratio 0.81 4.94
Debt/Capital 0.63 0.63
Interest Expense 0.0 13.34
Interest Coverage 0.0 1.11


SHARE DATA Q4 FY11 Q4 FY10
Shares outstanding (mil) 63.0 62.56
Div / share 0.0 0.0
EPS -0.03 0.05
Book value / share 10.7 10.7
Institutional Own % n/a n/a
Avg Daily Volume 994564.0 608169.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.15 indicates a significant discount versus the S&P 500 average of 2.26 and a significant discount versus the industry average of 1.70. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, EAGLE BULK SHIPPING INC proves to trade at a discount to investment alternatives within the industry.


PRICE/EARNINGS
1 2 3 4 5
PREMIUM   DISCOUNT
  PRICE/CASH FLOW
1 2 3 4 5
PREMIUM   DISCOUNT
EGLE NM Peers 20.40   EGLE 1.73 Peers 11.09

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

EGLE's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

EGLE is trading at a significant discount to its peers.

 
PRICE/PROJECTED
EARNINGS
1 2 3 4 5
PREMIUM   DISCOUNT
  PRICE TO
EARNINGS/GROWTH
1 2 3 4 5
PREMIUM   DISCOUNT
EGLE NM Peers 15.59   EGLE NA Peers 1.02

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

EGLE's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
PRICE/BOOK
1 2 3 4 5
PREMIUM   DISCOUNT
  EARNINGS GROWTH
1 2 3 4 5
LOWER   HIGHER
EGLE 0.15 Peers 1.70   EGLE -153.48 Peers -25.08

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

EGLE is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, EGLE is expected to significantly trail its peers on the basis of its earnings growth rate.

 
PRICE/SALES
1 2 3 4 5
PREMIUM   DISCOUNT
  SALES GROWTH
1 2 3 4 5
PREMIUM   DISCOUNT
EGLE 0.32 Peers 1.98   EGLE 18.26 Peers 55.38

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

EGLE is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

EGLE significantly trails its peers on the basis of sales growth

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Markets

Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%
Top Rated Stocks Top Rated Funds Top Rated ETFs