GENCO SHIPPING & TRADING LTD (GNK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GNK - MHY2685T1313 - Common Stock
18.79 USD
+0.19 (+1.02%)
18.79 USD
0 (0%)
Taking everything into account, GNK scores 3 out of 10 in our fundamental rating. GNK was compared to 35 industry peers in the Marine Transportation industry. While GNK seems to be doing ok healthwise, there are quite some concerns on its profitability. GNK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
GNK had negative earnings in the past year.
GNK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: GNK reported negative net income in multiple years.
In the past 5 years GNK always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -0.64%, GNK is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
GNK has a worse Return On Equity (-0.80%) than 62.86% of its industry peers.
GNK has a Return On Invested Capital of 0.29%. This is in the lower half of the industry: GNK underperforms 68.57% of its industry peers.
GNK had an Average Return On Invested Capital over the past 3 years of 6.73%. This is in line with the industry average of 6.93%.
The 3 year average ROIC (6.73%) for GNK is well above the current ROIC(0.29%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.64% | ||
| ROE | -0.8% | ||
| ROIC | 0.29% |
ROA(3y)6.54%
ROA(5y)3.29%
ROE(3y)7.74%
ROE(5y)2.56%
ROIC(3y)6.73%
ROIC(5y)6.81%
1.3 Margins
GNK's Profit Margin has declined in the last couple of years.
GNK has a worse Operating Margin (1.18%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of GNK has declined.
With a Gross Margin value of 34.02%, GNK perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
GNK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.18% | ||
| PM (TTM) | N/A | ||
| GM | 34.02% |
OM growth 3Y-20.17%
OM growth 5YN/A
PM growth 3Y-18.42%
PM growth 5YN/A
GM growth 3Y-5.33%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
GNK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GNK has been increased compared to 1 year ago.
Compared to 5 years ago, GNK has more shares outstanding
The debt/assets ratio for GNK has been reduced compared to a year ago.
2.2 Solvency
GNK has an Altman-Z score of 1.85. This is not the best score and indicates that GNK is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.85, GNK is doing good in the industry, outperforming 62.86% of the companies in the same industry.
GNK has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.18, GNK is doing good in the industry, outperforming 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.85 |
ROIC/WACC0.03
WACC8.51%
2.3 Liquidity
GNK has a Current Ratio of 2.36. This indicates that GNK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.36, GNK is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
GNK has a Quick Ratio of 1.98. This is a normal value and indicates that GNK is financially healthy and should not expect problems in meeting its short term obligations.
GNK's Quick ratio of 1.98 is fine compared to the rest of the industry. GNK outperforms 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
GNK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -107.82%.
The earnings per share for GNK have been decreasing by -26.99% on average. This is quite bad
GNK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.58%.
GNK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.66% yearly.
EPS 1Y (TTM)-107.82%
EPS 3Y-26.99%
EPS 5YN/A
EPS Q2Q%-102.44%
Revenue 1Y (TTM)-24.58%
Revenue growth 3Y-8.22%
Revenue growth 5Y1.66%
Sales Q2Q%-0.03%
3.2 Future
Based on estimates for the next years, GNK will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.97% on average per year.
The Revenue is expected to decrease by -5.07% on average over the next years.
EPS Next Y-93.43%
EPS Next 2Y-9.35%
EPS Next 3Y13.97%
EPS Next 5YN/A
Revenue Next Year-12.41%
Revenue Next 2Y-5.18%
Revenue Next 3Y-5.07%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for GNK. In the last year negative earnings were reported.
GNK is valuated correctly with a Price/Forward Earnings ratio of 13.86.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GNK is on the same level as its industry peers.
GNK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
74.29% of the companies in the same industry are cheaper than GNK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GNK's earnings are expected to grow with 13.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.35%
EPS Next 3Y13.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.23%, GNK has a reasonable but not impressive dividend return.
GNK's Dividend Yield is a higher than the industry average which is at 5.65.
Compared to an average S&P500 Dividend Yield of 2.00, GNK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
On average, the dividend of GNK grows each year by 25.86%, which is quite nice.
GNK has been paying a dividend for over 5 years, so it has already some track record.
The dividend of GNK decreased recently.
Dividend Growth(5Y)25.86%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of GNK are negative and hence is the payout ratio. GNK will probably not be able to sustain this dividend level.
The dividend of GNK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-611.58%
EPS Next 2Y-9.35%
EPS Next 3Y13.97%
18.79
+0.19 (+1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners56.2%
Inst Owner Change-4.87%
Ins Owners1.74%
Ins Owner Change2.22%
Market Cap812.48M
Revenue(TTM)331.33M
Net Income(TTM)-7.10M
Analysts80
Price Target22.53 (19.9%)
Short Float %8.53%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend1.58
Dividend Growth(5Y)25.86%
DP-611.58%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-54.09%
Min EPS beat(2)-104.64%
Max EPS beat(2)-3.54%
EPS beat(4)0
Avg EPS beat(4)-34.62%
Min EPS beat(4)-104.64%
Max EPS beat(4)-3.54%
EPS beat(8)2
Avg EPS beat(8)-17.77%
EPS beat(12)5
Avg EPS beat(12)-13.34%
EPS beat(16)6
Avg EPS beat(16)-10.72%
Revenue beat(2)2
Avg Revenue beat(2)4.03%
Min Revenue beat(2)4.02%
Max Revenue beat(2)4.03%
Revenue beat(4)4
Avg Revenue beat(4)5.87%
Min Revenue beat(4)4.02%
Max Revenue beat(4)8.58%
Revenue beat(8)6
Avg Revenue beat(8)6.56%
Revenue beat(12)7
Avg Revenue beat(12)6.9%
Revenue beat(16)11
Avg Revenue beat(16)10.99%
PT rev (1m)3.11%
PT rev (3m)4.58%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)-67.29%
EPS NY rev (3m)-64.36%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)10.07%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.86 | ||
| P/S | 2.45 | ||
| P/FCF | N/A | ||
| P/OCF | 17.67 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)-0.14
EYN/A
EPS(NY)1.36
Fwd EY7.22%
FCF(TTM)-0.53
FCFYN/A
OCF(TTM)1.06
OCFY5.66%
SpS7.66
BVpS20.49
TBVpS20.49
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.64% | ||
| ROE | -0.8% | ||
| ROCE | 0.37% | ||
| ROIC | 0.29% | ||
| ROICexc | 0.32% | ||
| ROICexgc | 0.32% | ||
| OM | 1.18% | ||
| PM (TTM) | N/A | ||
| GM | 34.02% | ||
| FCFM | N/A |
ROA(3y)6.54%
ROA(5y)3.29%
ROE(3y)7.74%
ROE(5y)2.56%
ROIC(3y)6.73%
ROIC(5y)6.81%
ROICexc(3y)7.06%
ROICexc(5y)7.32%
ROICexgc(3y)7.06%
ROICexgc(5y)7.32%
ROCE(3y)8.51%
ROCE(5y)8.62%
ROICexgc growth 3Y-24.91%
ROICexgc growth 5YN/A
ROICexc growth 3Y-24.91%
ROICexc growth 5YN/A
OM growth 3Y-20.17%
OM growth 5YN/A
PM growth 3Y-18.42%
PM growth 5YN/A
GM growth 3Y-5.33%
GM growth 5Y10.39%
F-Score2
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 94.41% | ||
| Cap/Sales | 20.84% | ||
| Interest Coverage | 0.44 | ||
| Cash Conversion | 59.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 1.85 |
F-Score2
WACC8.51%
ROIC/WACC0.03
Cap/Depr(3y)105.67%
Cap/Depr(5y)111.35%
Cap/Sales(3y)16.11%
Cap/Sales(5y)15.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-107.82%
EPS 3Y-26.99%
EPS 5YN/A
EPS Q2Q%-102.44%
EPS Next Y-93.43%
EPS Next 2Y-9.35%
EPS Next 3Y13.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.58%
Revenue growth 3Y-8.22%
Revenue growth 5Y1.66%
Sales Q2Q%-0.03%
Revenue Next Year-12.41%
Revenue Next 2Y-5.18%
Revenue Next 3Y-5.07%
Revenue Next 5YN/A
EBIT growth 1Y-95.28%
EBIT growth 3Y-26.73%
EBIT growth 5YN/A
EBIT Next Year4.06%
EBIT Next 3Y28.08%
EBIT Next 5YN/A
FCF growth 1Y-128.77%
FCF growth 3Y-14.83%
FCF growth 5Y50.46%
OCF growth 1Y-47.8%
OCF growth 3Y-18.12%
OCF growth 5Y16.35%
GENCO SHIPPING & TRADING LTD / GNK FAQ
What is the ChartMill fundamental rating of GENCO SHIPPING & TRADING LTD (GNK) stock?
ChartMill assigns a fundamental rating of 3 / 10 to GNK.
What is the valuation status for GNK stock?
ChartMill assigns a valuation rating of 1 / 10 to GENCO SHIPPING & TRADING LTD (GNK). This can be considered as Overvalued.
How profitable is GENCO SHIPPING & TRADING LTD (GNK) stock?
GENCO SHIPPING & TRADING LTD (GNK) has a profitability rating of 3 / 10.
Can you provide the financial health for GNK stock?
The financial health rating of GENCO SHIPPING & TRADING LTD (GNK) is 5 / 10.
What is the expected EPS growth for GENCO SHIPPING & TRADING LTD (GNK) stock?
The Earnings per Share (EPS) of GENCO SHIPPING & TRADING LTD (GNK) is expected to decline by -93.43% in the next year.