GOLDEN OCEAN GROUP LTD (GOGL)
BMG396372051 - Common Stock
We assign a fundamental rating of 4 out of 10 to GOGL. GOGL was compared to 29 industry peers in the Marine Transportation industry. GOGL has a medium profitability rating, but doesn't score so well on its financial health evaluation. GOGL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GOGL had positive earnings in the past year.
GOGL had a positive operating cash flow in the past year.
GOGL had positive earnings in 4 of the past 5 years.
GOGL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.22%, GOGL is in line with its industry, outperforming 41.38% of the companies in the same industry.
GOGL has a Return On Equity (5.84%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.63%, GOGL is in line with its industry, outperforming 51.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOGL is in line with the industry average of 7.51%.
The 3 year average ROIC (9.18%) for GOGL is well above the current ROIC(4.63%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 5.84% | ||
| ROIC | 4.63% |
ROA(3y)10.89%
ROA(5y)5.77%
ROE(3y)19.09%
ROE(5y)9.93%
ROIC(3y)9.18%
ROIC(5y)6.3%
1.3 Margins
GOGL has a Profit Margin (12.68%) which is in line with its industry peers.
GOGL's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 21.59%, GOGL is in line with its industry, outperforming 48.28% of the companies in the same industry.
GOGL's Operating Margin has been stable in the last couple of years.
The Gross Margin of GOGL (43.77%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GOGL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.59% | ||
| PM (TTM) | 12.68% | ||
| GM | 43.77% |
OM growth 3Y57.95%
OM growth 5Y-0.58%
PM growth 3YN/A
PM growth 5Y-0.32%
GM growth 3Y6.19%
GM growth 5Y-3.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GOGL is still creating some value.
Compared to 1 year ago, GOGL has less shares outstanding
The number of shares outstanding for GOGL has been increased compared to 5 years ago.
GOGL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that GOGL is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.65, GOGL is doing good in the industry, outperforming 65.52% of the companies in the same industry.
GOGL has a Debt/Equity ratio of 0.69. This is a neutral value indicating GOGL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, GOGL is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
ROIC/WACC0.58
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.23 indicates that GOGL should not have too much problems paying its short term obligations.
GOGL's Current ratio of 1.23 is in line compared to the rest of the industry. GOGL outperforms 44.83% of its industry peers.
GOGL has a Quick Ratio of 1.23. This is a normal value and indicates that GOGL is financially healthy and should not expect problems in meeting its short term obligations.
GOGL's Quick ratio of 1.23 is in line compared to the rest of the industry. GOGL outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
GOGL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.83%.
GOGL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.73% yearly.
Looking at the last year, GOGL shows a very negative growth in Revenue. The Revenue has decreased by -20.45% in the last year.
Measured over the past years, GOGL shows a small growth in Revenue. The Revenue has been growing by 6.19% on average per year.
EPS 1Y (TTM)-70.83%
EPS 3YN/A
EPS 5Y0.73%
EPS growth Q2Q-6.45%
Revenue 1Y (TTM)-20.45%
Revenue growth 3Y13.37%
Revenue growth 5Y6.19%
Revenue growth Q2Q1.84%
3.2 Future
Based on estimates for the next years, GOGL will show a very strong growth in Earnings Per Share. The EPS will grow by 47.50% on average per year.
GOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.45% yearly.
EPS Next Y202.87%
EPS Next 2Y80.88%
EPS Next 3Y47.5%
EPS Next 5YN/A
Revenue Next Year30.25%
Revenue Next 2Y15.78%
Revenue Next 3Y9.45%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.09, GOGL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GOGL is valued a bit more expensive than the industry average as 62.07% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 24.84, GOGL is valued at the same level.
Based on the Price/Forward Earnings ratio of 8.28, the valuation of GOGL can be described as reasonable.
GOGL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of GOGL to the average of the S&P500 Index (21.35), we can say GOGL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOGL indicates a slightly more expensive valuation: GOGL is more expensive than 65.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.55 |
4.3 Compensation for Growth
GOGL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOGL's earnings are expected to grow with 47.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)34.37
EPS Next 2Y80.88%
EPS Next 3Y47.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, GOGL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.90, GOGL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, GOGL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
The dividend of GOGL has a limited annual growth rate of 1.95%.
GOGL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GOGL pays out 89.06% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GOGL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP89.06%
EPS Next 2Y80.88%
EPS Next 3Y47.5%
GOLDEN OCEAN GROUP LTD
NASDAQ:GOGL (4/26/2024, 7:00:02 PM)
After market: 14.09 +0.04 (+0.28%)14.05
+0.23 (+1.66%)
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 Cap2.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 8.28 | ||
| 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)0.12
PEG (5Y)34.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 5.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.59% | ||
| PM (TTM) | 12.68% | ||
| GM | 43.77% | ||
| 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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| 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)-70.83%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y202.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.45%
Revenue growth 3Y13.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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