GENCO SHIPPING & TRADING LTD (GNK) Stock Fundamental Analysis
NYSE:GNK - New York Stock Exchange, Inc. - MHY2685T1313 - Common Stock - Currency: USD
Taking everything into account, GNK scores 4 out of 10 in our fundamental rating. GNK was compared to 29 industry peers in the Marine Transportation industry. GNK has a great financial health rating, but its profitability evaluates not so good. GNK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GNK was profitable.
GNK had a positive operating cash flow in the past year.
In multiple years GNK reported negative net income over the last 5 years.
Of the past 5 years GNK 4 years had a positive operating cash flow.
1.2 Ratios
GNK's Return On Assets of 6.57% is in line compared to the rest of the industry. GNK outperforms 46.43% of its industry peers.
With a Return On Equity value of 7.38%, GNK is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 6.54%, GNK is in line with its industry, outperforming 53.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GNK is in line with the industry average of 8.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 7.38% | ||
| ROIC | 6.54% |
ROA(3y)9.17%
ROA(5y)1.11%
ROE(3y)11.61%
ROE(5y)-0.23%
ROIC(3y)9.17%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of GNK (15.63%) is worse than 60.71% of its industry peers.
GNK has a worse Operating Margin (18.89%) than 64.29% of its industry peers.
In the last couple of years the Operating Margin of GNK has declined.
The Gross Margin of GNK (42.89%) is worse than 64.29% of its industry peers.
In the last couple of years the Gross Margin of GNK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.89% | ||
| PM (TTM) | 15.63% | ||
| GM | 42.89% |
OM growth 3Y64.25%
OM growth 5Y-8.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.36%
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 GNK is still creating some value.
There is no outstanding debt for GNK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
GNK has an Altman-Z score of 3.30. This indicates that GNK is financially healthy and has little risk of bankruptcy at the moment.
GNK has a better Altman-Z score (3.30) than 85.71% of its industry peers.
The Debt to FCF ratio of GNK is 1.71, which is an excellent value as it means it would take GNK, only 1.71 years of fcf income to pay off all of its debts.
GNK has a better Debt to FCF ratio (1.71) than 85.71% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that GNK is not too dependend on debt financing.
GNK's Debt to Equity ratio of 0.08 is amongst the best of the industry. GNK outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 3.3 |
ROIC/WACC0.78
WACC8.38%
2.3 Liquidity
GNK has a Current Ratio of 3.09. This indicates that GNK is financially healthy and has no problem in meeting its short term obligations.
GNK's Current ratio of 3.09 is fine compared to the rest of the industry. GNK outperforms 75.00% of its industry peers.
GNK has a Quick Ratio of 2.49. This indicates that GNK is financially healthy and has no problem in meeting its short term obligations.
GNK has a Quick ratio of 2.49. This is in the better half of the industry: GNK outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 145.90% over the past year.
Measured over the past years, GNK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.99% on average per year.
EPS 1Y (TTM)145.9%
EPS 3Y-26.99%
EPS 5YN/A
EPS Q2Q%-32.56%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.78%
3.2 Future
GNK is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.43% yearly.
Based on estimates for the next years, GNK will show a very negative growth in Revenue. The Revenue will decrease by -17.90% on average per year.
EPS Next Y3.8%
EPS Next 2Y0.34%
EPS Next 3Y-13.43%
EPS Next 5YN/A
Revenue Next Year-15.77%
Revenue Next 2Y-3.21%
Revenue Next 3Y-17.9%
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.
4. Valuation
4.1 Price/Earnings Ratio
GNK is valuated reasonably with a Price/Earnings ratio of 8.58.
GNK's Price/Earnings ratio is in line with the industry average.
GNK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 8.26, which indicates a very decent valuation of GNK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GNK is on the same level as its industry peers.
GNK is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNK is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GNK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.44 | ||
| EV/EBITDA | 4.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GNK does not grow enough to justify the current Price/Earnings ratio.
GNK's earnings are expected to decrease with -13.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)2.26
PEG (5Y)N/A
EPS Next 2Y0.34%
EPS Next 3Y-13.43%
5. Dividend
5.1 Amount
GNK has a Yearly Dividend Yield of 8.16%, which is a nice return.
Compared to an average industry Dividend Yield of 13.73, GNK pays a bit more dividend than its industry peers.
GNK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.16% |
5.2 History
The dividend of GNK is nicely growing with an annual growth rate of 10.52%!
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)10.52%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
82.75% of the earnings are spent on dividend by GNK. This is not a sustainable payout ratio.
The Dividend Rate of GNK has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP82.75%
EPS Next 2Y0.34%
EPS Next 3Y-13.43%
14.15
-0.56 (-3.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners67.82%
Inst Owner Change-2.28%
Ins Owners1.58%
Ins Owner Change0%
Market Cap605.05M
Analysts77.14
Price Target20.54 (45.16%)
Short Float %2.35%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.16% |
Yearly Dividend0.96
Dividend Growth(5Y)10.52%
DP82.75%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.3%
Min EPS beat(2)-1.32%
Max EPS beat(2)1.92%
EPS beat(4)2
Avg EPS beat(4)-0.93%
Min EPS beat(4)-6.07%
Max EPS beat(4)1.92%
EPS beat(8)5
Avg EPS beat(8)-2.7%
EPS beat(12)6
Avg EPS beat(12)-2.75%
EPS beat(16)9
Avg EPS beat(16)16.69%
Revenue beat(2)1
Avg Revenue beat(2)2.34%
Min Revenue beat(2)-6.14%
Max Revenue beat(2)10.83%
Revenue beat(4)2
Avg Revenue beat(4)7.25%
Min Revenue beat(4)-6.14%
Max Revenue beat(4)28.13%
Revenue beat(8)3
Avg Revenue beat(8)7.42%
Revenue beat(12)7
Avg Revenue beat(12)12.69%
Revenue beat(16)11
Avg Revenue beat(16)21.42%
PT rev (1m)-3.34%
PT rev (3m)-12.23%
EPS NQ rev (1m)-15.32%
EPS NQ rev (3m)-35.13%
EPS NY rev (1m)-2.66%
EPS NY rev (3m)-6.95%
Revenue NQ rev (1m)-10.88%
Revenue NQ rev (3m)-13.38%
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 8.26 | ||
| P/S | 1.38 | ||
| P/FCF | 14.44 | ||
| P/OCF | 4.43 | ||
| P/B | 0.65 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 4.34 |
EPS(TTM)1.65
EY11.66%
EPS(NY)1.71
Fwd EY12.1%
FCF(TTM)0.98
FCFY6.92%
OCF(TTM)3.19
OCFY22.55%
SpS10.27
BVpS21.75
TBVpS21.75
PEG (NY)2.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 7.38% | ||
| ROCE | 8.27% | ||
| ROIC | 6.54% | ||
| ROICexc | 6.85% | ||
| ROICexgc | 6.85% | ||
| OM | 18.89% | ||
| PM (TTM) | 15.63% | ||
| GM | 42.89% | ||
| FCFM | 9.54% |
ROA(3y)9.17%
ROA(5y)1.11%
ROE(3y)11.61%
ROE(5y)-0.23%
ROIC(3y)9.17%
ROIC(5y)N/A
ROICexc(3y)9.91%
ROICexc(5y)N/A
ROICexgc(3y)9.91%
ROICexgc(5y)N/A
ROCE(3y)11.61%
ROCE(5y)N/A
ROICexcg growth 3Y63.87%
ROICexcg growth 5Y-3.46%
ROICexc growth 3Y63.87%
ROICexc growth 5Y-3.46%
OM growth 3Y64.25%
OM growth 5Y-8.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.36%
GM growth 5Y-3.46%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.71 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 139.85% | ||
| Cap/Sales | 21.52% | ||
| Interest Coverage | 6.18 | ||
| Cash Conversion | 90.6% | ||
| Profit Quality | 61.01% | ||
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.49 | ||
| Altman-Z | 3.3 |
F-Score8
WACC8.38%
ROIC/WACC0.78
Cap/Depr(3y)147.85%
Cap/Depr(5y)108.69%
Cap/Sales(3y)18.8%
Cap/Sales(5y)14.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)145.9%
EPS 3Y-26.99%
EPS 5YN/A
EPS Q2Q%-32.56%
EPS Next Y3.8%
EPS Next 2Y0.34%
EPS Next 3Y-13.43%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.78%
Revenue Next Year-15.77%
Revenue Next 2Y-3.21%
Revenue Next 3Y-17.9%
Revenue Next 5YN/A
EBIT growth 1Y80.82%
EBIT growth 3Y68.49%
EBIT growth 5Y-7.72%
EBIT Next Year463.27%
EBIT Next 3Y76.3%
EBIT Next 5Y44.31%
FCF growth 1Y-78.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-45.31%
OCF growth 3Y35.49%
OCF growth 5Y6.85%