GENCO SHIPPING & TRADING LTD (GNK) Stock Fundamental Analysis
NYSE:GNK - New York Stock Exchange, Inc. - MHY2685T1313 - Common Stock - Currency: USD
Overall GNK gets a fundamental rating of 4 out of 10. We evaluated GNK against 32 industry peers in the Marine Transportation industry. While GNK seems to be doing ok healthwise, there are quite some concerns on its profitability. GNK has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GNK was profitable.
GNK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: GNK reported negative net income in multiple years.
GNK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GNK has a Return On Assets of 4.40%. This is comparable to the rest of the industry: GNK outperforms 46.88% of its industry peers.
GNK has a Return On Equity (5.06%) which is in line with its industry peers.
GNK's Return On Invested Capital of 3.53% is on the low side compared to the rest of the industry. GNK is outperformed by 65.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GNK is in line with the industry average of 8.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 5.06% | ||
| ROIC | 3.53% |
ROA(3y)6.54%
ROA(5y)3.29%
ROE(3y)7.74%
ROE(5y)2.56%
ROIC(3y)6.73%
ROIC(5y)6.81%
1.3 Margins
GNK has a Profit Margin (12.12%) which is in line with its industry peers.
GNK's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 11.76%, GNK is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
GNK's Operating Margin has declined in the last couple of years.
GNK has a worse Gross Margin (40.14%) than 65.63% of its industry peers.
GNK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.76% | ||
| PM (TTM) | 12.12% | ||
| GM | 40.14% |
OM growth 3Y-20.17%
OM growth 5YN/A
PM growth 3Y-18.42%
PM growth 5YN/A
GM growth 3Y-5.33%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GNK is destroying value.
GNK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GNK has been increased compared to 5 years ago.
GNK has a better debt/assets ratio than last year.
2.2 Solvency
GNK has an Altman-Z score of 2.25. This is not the best score and indicates that GNK is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.25, GNK is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
GNK has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as GNK would need 2.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.15, GNK is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
GNK has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
GNK has a better Debt to Equity ratio (0.09) than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.4
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.79 indicates that GNK should not have too much problems paying its short term obligations.
GNK has a Current ratio of 1.79. This is in the better half of the industry: GNK outperforms 75.00% of its industry peers.
GNK has a Quick Ratio of 1.28. This is a normal value and indicates that GNK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.28, GNK is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for GNK have decreased strongly by -20.00% in the last year.
The earnings per share for GNK have been decreasing by -26.99% on average. This is quite bad
Looking at the last year, GNK shows a decrease in Revenue. The Revenue has decreased by -7.40% in the last year.
Measured over the past years, GNK shows a small growth in Revenue. The Revenue has been growing by 1.66% on average per year.
EPS 1Y (TTM)-20%
EPS 3Y-26.99%
EPS 5YN/A
EPS Q2Q%-157.14%
Revenue 1Y (TTM)-7.4%
Revenue growth 3Y-8.22%
Revenue growth 5Y1.66%
Sales Q2Q%-39.31%
3.2 Future
GNK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.60% yearly.
GNK is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.01% yearly.
EPS Next Y-70.99%
EPS Next 2Y-20.83%
EPS Next 3Y4.6%
EPS Next 5YN/A
Revenue Next Year-21.17%
Revenue Next 2Y-7.47%
Revenue Next 3Y-12%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.08, GNK is valued correctly.
GNK's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.82, GNK is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.83, GNK is valued correctly.
GNK's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, GNK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GNK.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GNK indicates a somewhat cheap valuation: GNK is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.81 | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.83%
EPS Next 3Y4.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, GNK is a good candidate for dividend investing.
GNK's Dividend Yield is comparable with the industry average which is at 9.31.
Compared to an average S&P500 Dividend Yield of 2.36, GNK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
On average, the dividend of GNK grows each year by 25.86%, which is quite nice.
GNK has been paying a dividend for over 5 years, so it has already some track record.
GNK has decreased its dividend recently.
Dividend Growth(5Y)25.86%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GNK pays out 138.05% of its income as dividend. This is not a sustainable payout ratio.
GNK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP138.05%
EPS Next 2Y-20.83%
EPS Next 3Y4.6%
13.27
+0.23 (+1.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners67.82%
Inst Owner Change0.4%
Ins Owners1.58%
Ins Owner Change7.23%
Market Cap570.08M
Analysts80
Price Target19.76 (48.91%)
Short Float %5.01%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend1.58
Dividend Growth(5Y)25.86%
DP138.05%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.15%
Min EPS beat(2)-21.15%
Max EPS beat(2)-9.14%
EPS beat(4)1
Avg EPS beat(4)-7.42%
Min EPS beat(4)-21.15%
Max EPS beat(4)1.92%
EPS beat(8)4
Avg EPS beat(8)-0.18%
EPS beat(12)5
Avg EPS beat(12)-5.16%
EPS beat(16)7
Avg EPS beat(16)-3.91%
Revenue beat(2)2
Avg Revenue beat(2)7.71%
Min Revenue beat(2)6.84%
Max Revenue beat(2)8.58%
Revenue beat(4)3
Avg Revenue beat(4)5.02%
Min Revenue beat(4)-6.14%
Max Revenue beat(4)10.83%
Revenue beat(8)4
Avg Revenue beat(8)3.48%
Revenue beat(12)7
Avg Revenue beat(12)9.6%
Revenue beat(16)11
Avg Revenue beat(16)13.64%
PT rev (1m)-3.08%
PT rev (3m)-10.73%
EPS NQ rev (1m)-24.08%
EPS NQ rev (3m)-79.28%
EPS NY rev (1m)-23.9%
EPS NY rev (3m)-74.84%
Revenue NQ rev (1m)-4.98%
Revenue NQ rev (3m)-19.08%
Revenue NY rev (1m)-5.35%
Revenue NY rev (3m)-14.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 12.83 | ||
| P/S | 1.51 | ||
| P/FCF | 14.81 | ||
| P/OCF | 5.85 | ||
| P/B | 0.63 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 5.4 |
EPS(TTM)0.88
EY6.63%
EPS(NY)1.03
Fwd EY7.79%
FCF(TTM)0.9
FCFY6.75%
OCF(TTM)2.27
OCFY17.1%
SpS8.77
BVpS21.02
TBVpS21.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 5.06% | ||
| ROCE | 4.47% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 3.64% | ||
| OM | 11.76% | ||
| PM (TTM) | 12.12% | ||
| GM | 40.14% | ||
| FCFM | 10.22% |
ROA(3y)6.54%
ROA(5y)3.29%
ROE(3y)7.74%
ROE(5y)2.56%
ROIC(3y)6.73%
ROIC(5y)6.81%
ROICexc(3y)7.06%
ROICexc(5y)7.32%
ROICexgc(3y)7.06%
ROICexgc(5y)7.32%
ROCE(3y)8.51%
ROCE(5y)8.62%
ROICexcg growth 3Y-24.91%
ROICexcg growth 5YN/A
ROICexc growth 3Y-24.91%
ROICexc growth 5YN/A
OM growth 3Y-20.17%
OM growth 5YN/A
PM growth 3Y-18.42%
PM growth 5YN/A
GM growth 3Y-5.33%
GM growth 5Y10.39%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 85.38% | ||
| Cap/Sales | 15.66% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 85.95% | ||
| Profit Quality | 84.27% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 2.25 |
F-Score6
WACC8.74%
ROIC/WACC0.4
Cap/Depr(3y)105.67%
Cap/Depr(5y)111.35%
Cap/Sales(3y)16.11%
Cap/Sales(5y)15.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20%
EPS 3Y-26.99%
EPS 5YN/A
EPS Q2Q%-157.14%
EPS Next Y-70.99%
EPS Next 2Y-20.83%
EPS Next 3Y4.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.4%
Revenue growth 3Y-8.22%
Revenue growth 5Y1.66%
Sales Q2Q%-39.31%
Revenue Next Year-21.17%
Revenue Next 2Y-7.47%
Revenue Next 3Y-12%
Revenue Next 5YN/A
EBIT growth 1Y-18.54%
EBIT growth 3Y-26.73%
EBIT growth 5YN/A
EBIT Next Year23.58%
EBIT Next 3Y18.9%
EBIT Next 5YN/A
FCF growth 1Y-73.3%
FCF growth 3Y-14.83%
FCF growth 5Y50.46%
OCF growth 1Y-37.62%
OCF growth 3Y-18.12%
OCF growth 5Y16.35%