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. There are concerns on the financial health of GOGL while its profitability can be described as average. GOGL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GOGL was profitable.
GOGL had a positive operating cash flow in the past year.
Of the past 5 years GOGL 4 years were profitable.
GOGL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GOGL's Return On Assets of 3.35% is in line compared to the rest of the industry. GOGL outperforms 47.22% of its industry peers.
GOGL's Return On Equity of 6.23% is in line compared to the rest of the industry. GOGL outperforms 52.78% of its industry peers.
The Return On Invested Capital of GOGL (4.92%) is comparable to the rest of the industry.
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
The Profit Margin of GOGL (13.16%) is comparable to the rest of the industry.
GOGL's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 21.92%, GOGL perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
GOGL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 42.48%, GOGL perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
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.
The number of shares outstanding for GOGL remains at a similar level compared to 1 year ago.
The number of shares outstanding for GOGL has been increased compared to 5 years ago.
The debt/assets ratio for GOGL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.16, 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 58.33% 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.
GOGL has a Debt/Equity ratio of 0.66. This is a neutral value indicating 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
WACC7.41%
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.
GOGL has a Current ratio of 0.81. This is amonst the worse of the industry: GOGL underperforms 80.56% of its industry peers.
A Quick Ratio of 0.81 indicates that GOGL may have some problems paying its short term obligations.
GOGL has a Quick ratio of 0.81. This is in the lower half of the industry: GOGL underperforms 75.00% of its industry peers.
| 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%.
Measured over the past years, GOGL shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.14% on average per year.
Looking at the last year, GOGL shows a decrease in Revenue. The Revenue has decreased by -7.73% in the last year.
Measured over the past years, GOGL shows a small growth in Revenue. The Revenue has been growing by 6.53% on average per year.
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.
Based on estimates for the next years, GOGL will show a decrease in Revenue. The Revenue will decrease by -3.10% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GOGL is valuated correctly with a Price/Earnings ratio of 15.12.
GOGL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.69, GOGL is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 8.23, the valuation of GOGL can be described as reasonable.
Based on the Price/Forward Earnings ratio, GOGL is valued a bit cheaper than 61.11% of the companies in the same industry.
GOGL is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 8.23 |
4.2 Price Multiples
61.11% of the companies in the same industry are cheaper than GOGL, based on the Enterprise Value to EBITDA ratio.
63.89% of the companies in the same industry are more expensive than GOGL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.96 | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
GOGL's earnings are expected to decrease with -13.94% in the coming years. This may justify a cheaper valuation.
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 9.58%, GOGL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.25, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.58% |
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.
The dividend of GOGL decreased recently.
Dividend Growth(5Y)29.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GOGL pays out 184.66% of its income as dividend. This is not a sustainable payout ratio.
GOGL's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP184.66%
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
8.62
+0.19 (+2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners34.43%
Inst Owner Change-0.17%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap1.72B
Analysts76.36
Price Target8.44 (-2.09%)
Short Float %5.41%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.58% |
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)-34.15%
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 | 15.12 | ||
| Fwd PE | 8.23 | ||
| P/S | 1.99 | ||
| P/FCF | 9.96 | ||
| P/OCF | 6.98 | ||
| P/B | 0.94 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 9.21 |
EPS(TTM)0.57
EY6.61%
EPS(NY)1.05
Fwd EY12.15%
FCF(TTM)0.87
FCFY10.04%
OCF(TTM)1.23
OCFY14.32%
SpS4.33
BVpS9.16
TBVpS9.16
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
WACC7.41%
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%