GOLDEN OCEAN GROUP LTD (GOGL) Stock Fundamental Analysis
NASDAQ:GOGL - Nasdaq - BMG396372051 - Common Stock - Currency: USD
GOGL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Marine Transportation industry. While GOGL is still in line with the averages on profitability rating, there are concerns on its financial health. GOGL 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 GOGL was profitable.
In the past year GOGL had a positive cash flow from operations.
Of the past 5 years GOGL 4 years were profitable.
Each year in the past 5 years GOGL had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.35%, GOGL perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
With a Return On Equity value of 6.23%, GOGL perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
GOGL has a Return On Invested Capital (4.92%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOGL is in line with the industry average of 7.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 6.23% | ||
| ROIC | 4.92% |
ROA(3y)8%
ROA(5y)6.84%
ROE(3y)13.89%
ROE(5y)11.79%
ROIC(3y)7.46%
ROIC(5y)7.19%
1.3 Margins
GOGL has a Profit Margin (13.16%) which is in line with its industry peers.
In the last couple of years the Profit Margin of GOGL has grown nicely.
GOGL has a Operating Margin (21.92%) which is comparable to the rest of the industry.
GOGL's Operating Margin has improved in the last couple of years.
GOGL has a Gross Margin (42.48%) which is in line with its industry peers.
GOGL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.92% | ||
| PM (TTM) | 13.16% | ||
| GM | 42.48% |
OM growth 3Y-10.52%
OM growth 5Y16.22%
PM growth 3Y-19.28%
PM growth 5Y34.33%
GM growth 3Y-6.9%
GM growth 5Y1.39%
2. Health
2.1 Basic Checks
GOGL 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, GOGL has about the same amount of shares outstanding.
Compared to 5 years ago, GOGL has more shares outstanding
The debt/assets ratio for GOGL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that GOGL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.09, GOGL is in line with its industry, outperforming 57.58% of the companies in the same industry.
The Debt to FCF ratio of GOGL is 8.36, which is on the high side as it means it would take GOGL, 8.36 years of fcf income to pay off all of its debts.
GOGL has a better Debt to FCF ratio (8.36) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that GOGL is somewhat dependend on debt financing.
GOGL has a Debt to Equity ratio (0.66) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.36 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.68
WACC7.26%
2.3 Liquidity
A Current Ratio of 0.81 indicates that GOGL may have some problems paying its short term obligations.
GOGL has a worse Current ratio (0.81) than 78.79% of its industry peers.
A Quick Ratio of 0.81 indicates that GOGL may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, GOGL is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
GOGL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.71%.
The Earnings Per Share has been growing by 30.14% on average over the past years. This is a very strong growth
Looking at the last year, GOGL shows a decrease in Revenue. The Revenue has decreased by -7.73% in the last year.
GOGL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
EPS 1Y (TTM)-38.71%
EPS 3Y-23.79%
EPS 5Y30.14%
EPS Q2Q%-166.67%
Revenue 1Y (TTM)-7.73%
Revenue growth 3Y-6.98%
Revenue growth 5Y6.53%
Sales Q2Q%-27.85%
3.2 Future
The Earnings Per Share is expected to decrease by -13.94% on average over the next years. This is quite bad
The Revenue is expected to decrease by -3.10% on average over the next years.
EPS Next Y-53.1%
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
EPS Next 5YN/A
Revenue Next Year-17.68%
Revenue Next 2Y-4.37%
Revenue Next 3Y-3.1%
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 decreasing.
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 13.12, GOGL is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as GOGL.
GOGL is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
GOGL is valuated cheaply with a Price/Forward Earnings ratio of 7.14.
GOGL's Price/Forward Earnings is on the same level as the industry average.
GOGL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 7.14 |
4.2 Price Multiples
60.61% of the companies in the same industry are cheaper than GOGL, based on the Enterprise Value to EBITDA ratio.
GOGL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GOGL is cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.64 | ||
| EV/EBITDA | 8.65 |
4.3 Compensation for Growth
A cheap valuation may be justified as GOGL's earnings are expected to decrease with -13.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
5. Dividend
5.1 Amount
GOGL has a Yearly Dividend Yield of 10.22%, which is a nice return.
Compared to an average industry Dividend Yield of 8.06, GOGL pays a better dividend. On top of this GOGL pays more dividend than 90.91% of the companies listed in the same industry.
GOGL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.22% |
5.2 History
On average, the dividend of GOGL grows each year by 29.94%, which is quite nice.
GOGL has been paying a dividend for at least 10 years, so it has a reliable track record.
GOGL has decreased its dividend recently.
Dividend Growth(5Y)29.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
184.66% of the earnings are spent on dividend by GOGL. This is not a sustainable payout ratio.
The Dividend Rate of GOGL has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP184.66%
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
7.48
-0.04 (-0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners34.43%
Inst Owner Change-5.58%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap1.49B
Analysts76.67
Price Target10.35 (38.37%)
Short Float %6.61%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.22% |
Yearly Dividend1.2
Dividend Growth(5Y)29.94%
DP184.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.88%
Min EPS beat(2)-36.86%
Max EPS beat(2)-26.9%
EPS beat(4)1
Avg EPS beat(4)-18.69%
Min EPS beat(4)-36.86%
Max EPS beat(4)2.68%
EPS beat(8)5
Avg EPS beat(8)14.66%
EPS beat(12)8
Avg EPS beat(12)15.76%
EPS beat(16)12
Avg EPS beat(16)18.49%
Revenue beat(2)2
Avg Revenue beat(2)15.93%
Min Revenue beat(2)15.19%
Max Revenue beat(2)16.68%
Revenue beat(4)3
Avg Revenue beat(4)8.72%
Min Revenue beat(4)-0.42%
Max Revenue beat(4)16.68%
Revenue beat(8)5
Avg Revenue beat(8)9.6%
Revenue beat(12)9
Avg Revenue beat(12)18.12%
Revenue beat(16)13
Avg Revenue beat(16)22.97%
PT rev (1m)-10.15%
PT rev (3m)-19.23%
EPS NQ rev (1m)-32.74%
EPS NQ rev (3m)-51.61%
EPS NY rev (1m)-34.86%
EPS NY rev (3m)-58.91%
Revenue NQ rev (1m)-10.69%
Revenue NQ rev (3m)-10.69%
Revenue NY rev (1m)-7.76%
Revenue NY rev (3m)-9.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 7.14 | ||
| P/S | 1.73 | ||
| P/FCF | 8.64 | ||
| P/OCF | 6.06 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 8.65 |
EPS(TTM)0.57
EY7.62%
EPS(NY)1.05
Fwd EY14%
FCF(TTM)0.87
FCFY11.57%
OCF(TTM)1.23
OCFY16.5%
SpS4.33
BVpS9.16
TBVpS9.16
PEG (NY)N/A
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 6.23% | ||
| ROCE | 6.23% | ||
| ROIC | 4.92% | ||
| ROICexc | 5.1% | ||
| ROICexgc | 5.1% | ||
| OM | 21.92% | ||
| PM (TTM) | 13.16% | ||
| GM | 42.48% | ||
| FCFM | 19.99% |
ROA(3y)8%
ROA(5y)6.84%
ROE(3y)13.89%
ROE(5y)11.79%
ROIC(3y)7.46%
ROIC(5y)7.19%
ROICexc(3y)7.79%
ROICexc(5y)7.57%
ROICexgc(3y)7.79%
ROICexgc(5y)7.57%
ROCE(3y)9.45%
ROCE(5y)9.1%
ROICexcg growth 3Y-16.84%
ROICexcg growth 5Y19.87%
ROICexc growth 3Y-16.84%
ROICexc growth 5Y19.87%
OM growth 3Y-10.52%
OM growth 5Y16.22%
PM growth 3Y-19.28%
PM growth 5Y34.33%
GM growth 3Y-6.9%
GM growth 5Y1.39%
F-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.36 | ||
| Debt/EBITDA | 3.69 | ||
| Cap/Depr | 53.12% | ||
| Cap/Sales | 8.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.11% | ||
| Profit Quality | 151.83% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.09 |
F-Score5
WACC7.26%
ROIC/WACC0.68
Cap/Depr(3y)156.98%
Cap/Depr(5y)170.68%
Cap/Sales(3y)23.29%
Cap/Sales(5y)22.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.71%
EPS 3Y-23.79%
EPS 5Y30.14%
EPS Q2Q%-166.67%
EPS Next Y-53.1%
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.73%
Revenue growth 3Y-6.98%
Revenue growth 5Y6.53%
Sales Q2Q%-27.85%
Revenue Next Year-17.68%
Revenue Next 2Y-4.37%
Revenue Next 3Y-3.1%
Revenue Next 5YN/A
EBIT growth 1Y-26.42%
EBIT growth 3Y-16.77%
EBIT growth 5Y23.81%
EBIT Next Year7.16%
EBIT Next 3Y15.36%
EBIT Next 5YN/A
FCF growth 1Y-32.86%
FCF growth 3Y31.74%
FCF growth 5Y18.21%
OCF growth 1Y-46.05%
OCF growth 3Y-13.29%
OCF growth 5Y18.19%