GOLDEN OCEAN GROUP LTD (GOGL) Stock Fundamental Analysis
NASDAQ:GOGL - Nasdaq - BMG396372051 - Common Stock - Currency: USD
Taking everything into account, GOGL scores 4 out of 10 in our fundamental rating. GOGL was compared to 32 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 correct valuation and a medium growth rate.
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.
GOGL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GOGL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.35%, GOGL is in line with its industry, outperforming 43.75% of the companies in the same industry.
GOGL has a Return On Equity (6.23%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.92%, GOGL is in line with its industry, outperforming 46.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GOGL is in line with the industry average of 7.55%.
| 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's Profit Margin of 13.16% is in line compared to the rest of the industry. GOGL outperforms 50.00% of 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 in line with its industry peers.
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.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GOGL is still creating some value.
The number of shares outstanding for GOGL remains at a similar level compared to 1 year ago.
Compared to 5 years ago, GOGL has more shares outstanding
Compared to 1 year ago, GOGL has an improved debt to assets ratio.
2.2 Solvency
GOGL has an Altman-Z score of 1.10. This is a bad value and indicates that GOGL is not financially healthy and even has some risk of bankruptcy.
GOGL has a Altman-Z score of 1.10. This is comparable to the rest of the industry: GOGL outperforms 59.38% 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 has a better Debt to FCF ratio (8.36) than 65.63% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that GOGL is somewhat dependend on debt financing.
The Debt to Equity ratio of GOGL (0.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.36 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.67
WACC7.39%
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: 81.25% 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 78.13% 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.
The Earnings Per Share has been growing by 30.14% on average over the past years. This is a very strong growth
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
The Earnings Per Share is expected to grow by 19.50% on average over the next years. This is quite good.
Based on estimates for the next years, GOGL will show a small growth in Revenue. The Revenue will grow by 3.80% on average per year.
EPS Next Y-28%
EPS Next 2Y11.75%
EPS Next 3Y19.5%
EPS Next 5YN/A
Revenue Next Year-10.75%
Revenue Next 2Y1.92%
Revenue Next 3Y3.8%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
The Price/Earnings ratio is 13.51, which indicates a correct valuation of GOGL.
GOGL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of GOGL to the average of the S&P500 Index (26.43), we can say GOGL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 5.50, the valuation of GOGL can be described as very cheap.
Based on the Price/Forward Earnings ratio, GOGL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
GOGL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 5.5 |
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 65.63% of the companies listed 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 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.9 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
GOGL's earnings are expected to grow with 19.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y11.75%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.72%, GOGL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.28, GOGL pays a better dividend. On top of this GOGL pays more dividend than 90.63% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.72% |
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 of GOGL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP184.66%
EPS Next 2Y11.75%
EPS Next 3Y19.5%
7.7
+0.03 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners39.02%
Inst Owner Change-5.58%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap1.54B
Analysts78.33
Price Target11.52 (49.61%)
Short Float %5.79%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.72% |
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)-7.16%
PT rev (3m)-20.55%
EPS NQ rev (1m)-28.06%
EPS NQ rev (3m)-44.77%
EPS NY rev (1m)-5.88%
EPS NY rev (3m)-36.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 5.5 | ||
| P/S | 1.78 | ||
| P/FCF | 8.9 | ||
| P/OCF | 6.24 | ||
| P/B | 0.84 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)0.57
EY7.4%
EPS(NY)1.4
Fwd EY18.17%
FCF(TTM)0.87
FCFY11.24%
OCF(TTM)1.23
OCFY16.03%
SpS4.33
BVpS9.16
TBVpS9.16
PEG (NY)N/A
PEG (5Y)0.45
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 | 1.1 |
F-Score5
WACC7.39%
ROIC/WACC0.67
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-28%
EPS Next 2Y11.75%
EPS Next 3Y19.5%
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-10.75%
Revenue Next 2Y1.92%
Revenue Next 3Y3.8%
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%