GENCO SHIPPING & TRADING LTD (GNK)
MHY2685T1313 - Common Stock
We assign a fundamental rating of 4 out of 10 to GNK. GNK was compared to 29 industry peers in the Marine Transportation industry. The financial health of GNK is average, but 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.
In the past year GNK had a positive cash flow from operations.
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's Return On Assets of -1.13% is on the low side compared to the rest of the industry. GNK is outperformed by 79.31% of its industry peers.
With a Return On Equity value of -1.41%, GNK is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
GNK has a worse Return On Invested Capital (2.55%) than 65.52% 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 7.78%.
The last Return On Invested Capital (2.55%) for GNK is well below the 3 year average (9.17%), which needs to be investigated, but indicates that GNK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -1.41% | ||
| ROIC | 2.55% |
ROA(3y)9.17%
ROA(5y)1.11%
ROE(3y)11.61%
ROE(5y)-0.23%
ROIC(3y)9.17%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of GNK (9.31%) is worse than 68.97% of its industry peers.
In the last couple of years the Operating Margin of GNK has declined.
The Gross Margin of GNK (35.06%) is worse than 65.52% of its industry peers.
In the last couple of years the Gross Margin of GNK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | N/A | ||
| GM | 35.06% |
OM growth 3Y64.25%
OM growth 5Y-8.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.36%
GM growth 5Y-3.46%
2. Health
2.1 Basic Checks
GNK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GNK has more shares outstanding
The number of shares outstanding for GNK has been increased compared to 5 years ago.
GNK has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.28 indicates that GNK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.28, GNK is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
GNK has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
GNK has a better Debt to Equity ratio (0.21) than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.28 |
ROIC/WACC0.29
WACC8.66%
2.3 Liquidity
GNK has a Current Ratio of 4.46. This indicates that GNK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.46, GNK is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
GNK has a Quick Ratio of 3.69. This indicates that GNK is financially healthy and has no problem in meeting its short term obligations.
GNK has a better Quick ratio (3.69) than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.46 | ||
| Quick Ratio | 3.69 |
3. Growth
3.1 Past
The earnings per share for GNK have decreased strongly by -82.06% in the last year.
GNK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.92% yearly.
GNK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.51%.
The Revenue has been growing slightly by 0.87% on average over the past years.
EPS 1Y (TTM)-82.06%
EPS 3YN/A
EPS 5Y1.92%
EPS growth Q2Q-35.82%
Revenue 1Y (TTM)-28.51%
Revenue growth 3Y2.58%
Revenue growth 5Y0.87%
Revenue growth Q2Q-9.04%
3.2 Future
Based on estimates for the next years, GNK will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.39% on average per year.
The Revenue is expected to decrease by -0.61% on average over the next years.
EPS Next Y255.12%
EPS Next 2Y96.75%
EPS Next 3Y54.39%
EPS Next 5Y12.39%
Revenue Next Year43.02%
Revenue Next 2Y19.71%
Revenue Next 3Y4.84%
Revenue Next 5Y-0.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GNK is valuated quite expensively with a Price/Earnings ratio of 32.61.
65.52% of the companies in the same industry are cheaper than GNK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GNK to the average of the S&P500 Index (27.73), we can say GNK is valued inline with the index average.
A Price/Forward Earnings ratio of 9.17 indicates a reasonable valuation of GNK.
GNK's Price/Forward Earnings ratio is in line with the industry average.
GNK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.61 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNK indicates a slightly more expensive valuation: GNK is more expensive than 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GNK's earnings are expected to grow with 54.39% in the coming years.
PEG (NY)0.13
PEG (5Y)16.95
EPS Next 2Y96.75%
EPS Next 3Y54.39%
5. Dividend
5.1 Amount
GNK has a Yearly Dividend Yield of 7.40%, which is a nice return.
GNK's Dividend Yield is rather good when compared to the industry average which is at 4.76. GNK pays more dividend than 89.66% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, GNK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.4% |
5.2 History
On average, the dividend of GNK grows each year by 10.52%, which is quite nice.
GNK has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)10.52%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of GNK are negative and hence is the payout ratio. GNK will probably not be able to sustain this dividend level.
The dividend of GNK is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-318.07%
EPS Next 2Y96.75%
EPS Next 3Y54.39%
GENCO SHIPPING & TRADING LTD
NYSE:GNK (5/6/2024, 3:16:27 PM)
After market: 21.85 0 (0%)21.85
-0.41 (-1.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap934.09M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.61 | ||
| Fwd PE | 9.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.13
PEG (5Y)16.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -1.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.31% | ||
| PM (TTM) | N/A | ||
| GM | 35.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.46 | ||
| Quick Ratio | 3.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-82.06%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y255.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.51%
Revenue growth 3Y2.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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