GENCO SHIPPING & TRADING LTD (GNK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GNK - MHY2685T1313 - Common Stock
18.8 USD
-0.85 (-4.33%)
18.75 USD
-0.05 (-0.27%)
GNK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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
In the past year GNK has reported negative net income.
In the past year GNK had a positive cash flow from operations.
In multiple years GNK reported negative net income over the last 5 years.
In the past 5 years GNK always reported a positive cash flow from operatings.
1.2 Ratios
GNK has a Return On Assets of -0.64%. This is in the lower half of the industry: GNK underperforms 60.00% of its industry peers.
Looking at the Return On Equity, with a value of -0.80%, GNK is doing worse than 60.00% of the companies in the same industry.
The Return On Invested Capital of GNK (0.29%) is worse than 60.00% 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 7.60%.
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.
With a Operating Margin value of 1.18%, GNK is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of GNK has declined.
Looking at the Gross Margin, with a value of 34.02%, GNK is in line with its industry, outperforming 45.71% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GNK is destroying value.
Compared to 1 year ago, GNK has more shares outstanding
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
An Altman-Z score of 1.95 indicates that GNK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.95, GNK is doing good in the industry, outperforming 65.71% 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.
Looking at the Debt to Equity ratio, with a value of 0.18, GNK is in the better half of 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 | 1.95 |
ROIC/WACC0.03
WACC8.55%
2.3 Liquidity
A Current Ratio of 2.36 indicates that GNK has no problem at all paying its short term obligations.
The Current ratio of GNK (2.36) is better than 68.57% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.98, GNK is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
| 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.
Based on estimates for the next years, GNK will show a decrease in Revenue. The Revenue will decrease by -5.07% on average per year.
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.
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
GNK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 13.87, the valuation of GNK can be described as correct.
GNK's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, GNK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
62.86% 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 | 11.91 |
4.3 Compensation for Growth
GNK's earnings are expected to grow with 13.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.35%
EPS Next 3Y13.97%
5. Dividend
5.1 Amount
GNK has a Yearly Dividend Yield of 3.26%. Purely for dividend investing, there may be better candidates out there.
GNK's Dividend Yield is a higher than the industry average which is at 4.83.
Compared to an average S&P500 Dividend Yield of 1.94, GNK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of GNK is nicely growing with an annual growth rate of 25.86%!
GNK has been paying a dividend for over 5 years, so it has already some track record.
GNK has decreased its dividend 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%
18.8
-0.85 (-4.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners56.4%
Inst Owner Change0%
Ins Owners1.74%
Ins Owner Change2.22%
Market Cap812.91M
Revenue(TTM)331.33M
Net Income(TTM)-7.10M
Analysts80
Price Target22.53 (19.84%)
Short Float %5.81%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend1.58
Dividend Growth(5Y)25.86%
DP-611.58%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-32.36%
EPS NY rev (3m)-64.36%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.87 | ||
| P/S | 2.45 | ||
| P/FCF | N/A | ||
| P/OCF | 17.68 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)-0.14
EYN/A
EPS(NY)1.36
Fwd EY7.21%
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 | 1.95 |
F-Score2
WACC8.55%
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.
Can you provide the valuation status for GENCO SHIPPING & TRADING LTD?
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.
How financially healthy is GENCO SHIPPING & TRADING LTD?
The financial health rating of GENCO SHIPPING & TRADING LTD (GNK) is 5 / 10.
What is the earnings growth outlook for GENCO SHIPPING & TRADING LTD?
The Earnings per Share (EPS) of GENCO SHIPPING & TRADING LTD (GNK) is expected to decline by -93.43% in the next year.