Have you ever considered owning a dry-bulk shipping stock? If you can tolerate some volatility, then consider taking a look at Eagle Bulk Shipping (NASDAQ:EGLE) stock.
This gets a “B” rating as the result of Eagle Bulk’s growing fleet and generous dividend payments. Plus, as we’ll discover, Eagle Bulk’s financial stats demonstrate notable improvement.
If any industry qualifies as a “need” rather than just a “want” in the 2020s, it’s the shipping industry. Eagle Bulk seeks to transport dry-bulk commodities worldwide, making it possible for a variety of products to reach their destinations.
To accomplish this, Eagle Bulk Shipping needs to have a sizable fleet of ships and firm finances. Fortunately, the company checks those boxes, while also rewarding long-term investors with an added income-generating opportunity.
| EGLE | Eagle Bulk Shipping | $49.41 |
Checking in on EGLE Stock
By mid-October, EGLE stock seemed to offer a favorable value because it was much closer to its 52-week low of $36.21 than the high of $78.75. However, that’s not the only way to measure the stock’s value.
Consider that Eagle Bulk Shipping’s trailing 12-month price-to-earnings (P/E) ratio is just 2.57. This certainly looks like bargain at the current valuation.
Plus, there’s a nice bonus in the form of hefty dividend payments. Income-focused investors should be glad to learn that Eagle Bulk Shipping pays a forward annual dividend yield of 17.72%.
What about the company itself, though? Here’s the rundown: Eagle Bulk specializes in Supramax/Ultramax vessels. These are among the most versatile types of dry-bulk ship types due to their size and specifications, according to the company.
Moreover, Eagle Bulk has a growing fleet of these ships. Not long ago, the company acquired an Ultramax vessel, putting Eagle Bulk’s total fleet count at 53 ships.
Eagle Bulk Shipping Is a Financially Stable Business
Having a large fleet and paying a huge dividend are great, but does Eagle Bulk Shipping have solid financials? The answer is definitely yes, and the data proves it.
Let’s start with the company’s balance sheet. On Dec. 31, 2021, Eagle Bulk Shipping had cash and cash equivalents totaling $86.15 million. That figure jumped to $138.96 million as of June 30, 2022. So far, so good.
Next, we should look at Eagle Bulk’s top- and bottom-line results. During 2022’s second quarter, the company generated $198.7 million in net revenue. That’s a sizable improvement over the $129.85 generated in the year-earlier quarter.
Finally, we should observe that Eagle Bulk Shipping’s net income soared from just $9.23 million in the year-earlier quarter, to $94.45 million in Q2 2022. Clearly, supply-chain constraints couldn’t stop Eagle Bulk from turning a nice profit.
What You Can Do Now
Don’t get the wrong idea here. Dry-bulk shipping stocks can be fast movers in both directions. This means that EGLE stock might not be appropriate for all portfolios.
Nonetheless, risk-tolerant, income-seeking investors should take a close look at Eagle Bulk Shipping. Just don’t “load the boat” with a too-large position size, and be ready to stay in the trade for the long haul.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.