GOLDEN OCEAN GROUP LTD (GOGL) Stock Fundamental Analysis
NASDAQ:GOGL - Nasdaq - BMG396372051 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to GOGL. GOGL was compared to 36 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GOGL had positive earnings in the past year.
In the past year GOGL had a positive cash flow from operations.
Of the past 5 years GOGL 4 years were profitable.
In the past 5 years GOGL always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.35%, GOGL perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
The Return On Equity of GOGL (6.23%) is comparable to the rest of the industry.
GOGL has a Return On Invested Capital (4.92%) which is in line with its industry peers.
GOGL had an Average Return On Invested Capital over the past 3 years of 7.46%. This is below the industry average of 9.49%.
| 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
With a Profit Margin value of 13.16%, GOGL perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
In the last couple of years the Profit Margin of GOGL has grown nicely.
Looking at the Operating Margin, with a value of 21.92%, GOGL is in line with its industry, outperforming 52.78% of the companies in the same industry.
In the last couple of years the Operating Margin of GOGL has grown nicely.
GOGL has a Gross Margin (42.48%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GOGL has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GOGL is creating some value.
The number of shares outstanding for GOGL remains at a similar level compared to 1 year ago.
GOGL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GOGL has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that GOGL is in the distress zone and has some risk of bankruptcy.
GOGL has a Altman-Z score of 1.16. This is comparable to the rest of the industry: GOGL outperforms 55.56% of its industry peers.
GOGL has a debt to FCF ratio of 8.36. This is a slightly negative value and a sign of low solvency as GOGL would need 8.36 years to pay back of all of its debts.
GOGL's Debt to FCF ratio of 8.36 is fine compared to the rest of the industry. GOGL outperforms 63.89% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that GOGL is somewhat dependend on debt financing.
GOGL has a worse Debt to Equity ratio (0.66) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.36 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.66
WACC7.46%
2.3 Liquidity
GOGL has a Current Ratio of 0.81. This is a bad value and indicates that GOGL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.81, GOGL is not doing good in the industry: 80.56% of the companies in the same industry are doing better.
GOGL has a Quick Ratio of 0.81. This is a bad value and indicates that GOGL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GOGL (0.81) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for GOGL have decreased strongly by -38.71% in the last year.
GOGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.14% yearly.
The Revenue has decreased by -7.73% in the past year.
The Revenue has been growing slightly by 6.53% on average over the past years.
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
Based on estimates for the next years, GOGL will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.94% on average per year.
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.
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
Based on the Price/Earnings ratio of 15.21, the valuation of GOGL can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as GOGL.
GOGL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.04.
GOGL is valuated reasonably with a Price/Forward Earnings ratio of 8.28.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOGL indicates a somewhat cheap valuation: GOGL is cheaper than 61.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, GOGL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
GOGL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GOGL is more expensive than 61.11% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOGL indicates a somewhat cheap valuation: GOGL is cheaper than 63.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.76 | ||
| EV/EBITDA | 9.22 |
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)0.5
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.49%, GOGL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.02, GOGL pays a better dividend. On top of this GOGL pays more dividend than 91.67% 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.49% |
5.2 History
On average, the dividend of GOGL grows each year by 29.94%, which is quite nice.
GOGL has paid a dividend for at least 10 years, which is 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%
8.67
+0.05 (+0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners34.43%
Inst Owner Change-0.36%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap1.68B
Analysts76.36
Price Target8.44 (-2.65%)
Short Float %5.41%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.49% |
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)-18.47%
PT rev (3m)-31.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-51.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-38.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 8.28 | ||
| P/S | 1.95 | ||
| P/FCF | 9.76 | ||
| P/OCF | 6.84 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 9.22 |
EPS(TTM)0.57
EY6.57%
EPS(NY)1.05
Fwd EY12.08%
FCF(TTM)0.89
FCFY10.25%
OCF(TTM)1.27
OCFY14.62%
SpS4.45
BVpS9.4
TBVpS9.4
PEG (NY)N/A
PEG (5Y)0.5
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 | 1.16 |
F-Score5
WACC7.46%
ROIC/WACC0.66
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%