8 Most Profitable Penny Stocks To Invest In

3. Safe Bulkers Inc. (NYSE:SB)

TTM Net Income: $95.5 million  

5-Year Net Income CAGR: 30.91%

Share Price as of October 9: $4.95

Number of Hedge Fund Holders: 15

Safe Bulkers Inc. (NYSE:SB) provides marine dry-bulk transportation services, owning and operating dry-bulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore. It has a fleet of 47 dry-bulk vessels having an aggregate carrying capacity of 4,719,600 deadweight tons. Its business is influenced by factors like global trade, demand for commodities, and shipping rates, so its financial performance can fluctuate depending on these market conditions.

The market focuses on decarbonization and energy efficiency, with strong iron ore demand. Coal demand is stable, and grain bulk levels are healthy. Global GDP growth is forecast at 3.2%, and BIMCO forecasts 3% growth in dry market demand. The dry bulk market remains strong despite falling steel and iron ore prices. Trade averages $22,000 per day, and global coal investment is set to grow by 2%. India’s growth forecast is raised to 7.3%.

Safe Bulkers Inc. (NYSE:SB) operated in a stronger chartered market environment in Q2 2024, with increased revenues from higher charter hires. However, earnings from stupefied vessels and higher interest expenses impacted overall profitability. Despite this, the company improved total revenue by 11.77% year-over-year.

Key financial highlights include an adjusted EBITDA of $41.8 million and adjusted earnings per share of $0.17. Operationally, the company operated 45.43 vessels on average, earning a TCE of $18,615. The company’s net income for the second quarter of 2024 was $27.6 million. The company’s strong financial performance, coupled with a healthy cash position and a focus on operational efficiency, positions it well for continued growth and success in the chartered market.