This shipping company, after merging with its competitor, owns about 150 ships with nearly 15 million deadweight tons, generates over $1.26 billion in revenue annually and shows net profit of over $300 million and EBITDA of over half a billion on the latest figures. Yet its shares are trading slightly below the book value of the fleet, with a price to earnings ratio of around 2.6 and a fair price in the $35-36 per unit range, about half the current market price.
The key part of the story is not just the number of ships, but the cost structure and capital policy. The Eagle Bulk integration has delivered $21.8 million in synergies and is running at an annual savings rate of over $50 million, with daily operating costs per ship of around $5,200 and cash overhead of around $1,300 per ship among the best in the fleet segment.
Top points of analysis
The combined post-merger fleet has around 150+ ships of over 14-15 million dwt, with an average age of around 10 years.
Revenues grow 33% to $1.265…