GENCO SHIPPING & TRADING LTD (GNK) Stock Fundamental Analysis
NYSE:GNK - New York Stock Exchange, Inc. - MHY2685T1313 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GNK. GNK was compared to 34 industry peers in the Marine Transportation industry. GNK has an average financial health and profitability rating. GNK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
GNK had positive earnings in the past year.
GNK had a positive operating cash flow in the past year.
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
The Return On Assets of GNK (4.40%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.06%, GNK is in line with its industry, outperforming 47.06% of the companies in the same industry.
GNK has a Return On Invested Capital (3.53%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GNK is in line with the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 5.06% | ||
| ROIC | 3.53% |
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
The Profit Margin of GNK (12.12%) is comparable to the rest of the industry.
GNK's Profit Margin has declined in the last couple of years.
GNK has a Operating Margin of 11.76%. This is comparable to the rest of the industry: GNK outperforms 41.18% of its industry peers.
GNK's Operating Margin has declined in the last couple of years.
GNK's Gross Margin of 40.14% is on the low side compared to the rest of the industry. GNK is outperformed by 61.76% of its industry peers.
In the last couple of years the Gross Margin of GNK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.76% | ||
| PM (TTM) | 12.12% | ||
| GM | 40.14% |
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.
GNK has more shares outstanding than it did 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
An Altman-Z score of 2.43 indicates that GNK is not a great score, but indicates only limited risk for bankruptcy at the moment.
GNK's Altman-Z score of 2.43 is amongst the best of the industry. GNK outperforms 85.29% of its industry peers.
GNK has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as GNK would need 2.15 years to pay back of all of its debts.
GNK has a better Debt to FCF ratio (2.15) than 82.35% of its industry peers.
GNK has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
GNK has a better Debt to Equity ratio (0.09) than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.41
WACC8.61%
2.3 Liquidity
A Current Ratio of 1.79 indicates that GNK should not have too much problems paying its short term obligations.
GNK has a better Current ratio (1.79) than 70.59% of its industry peers.
GNK has a Quick Ratio of 1.28. This is a normal value and indicates that GNK is financially healthy and should not expect problems in meeting its short term obligations.
GNK has a Quick ratio (1.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for GNK have decreased strongly by -20.00% in the last year.
The earnings per share for GNK have been decreasing by -26.99% on average. This is quite bad
Looking at the last year, GNK shows a decrease in Revenue. The Revenue has decreased by -7.40% in the last year.
The Revenue has been growing slightly by 1.66% on average over the past years.
EPS 1Y (TTM)-20%
EPS 3Y-26.99%
EPS 5YN/A
EPS Q2Q%-157.14%
Revenue 1Y (TTM)-7.4%
Revenue growth 3Y-8.22%
Revenue growth 5Y1.66%
Sales Q2Q%-39.31%
3.2 Future
GNK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.60% yearly.
The Revenue is expected to decrease by -12.01% on average over the next years. This is quite bad
EPS Next Y-78.02%
EPS Next 2Y-18.2%
EPS Next 3Y4.6%
EPS Next 5YN/A
Revenue Next Year-13.98%
Revenue Next 2Y-6.08%
Revenue Next 3Y-12%
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 15.85, which indicates a correct valuation of GNK.
Compared to the rest of the industry, the Price/Earnings ratio of GNK is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.45, GNK is valued a bit cheaper.
GNK is valuated correctly with a Price/Forward Earnings ratio of 12.64.
GNK's Price/Forward Earnings ratio is in line with the industry average.
GNK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 12.64 |
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.
GNK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.57 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.2%
EPS Next 3Y4.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, GNK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.72, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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
GNK pays out 138.05% of its income as dividend. This is not a sustainable payout ratio.
GNK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP138.05%
EPS Next 2Y-18.2%
EPS Next 3Y4.6%
13.95
+0.15 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners66.64%
Inst Owner Change-61.15%
Ins Owners1.72%
Ins Owner Change7.23%
Market Cap599.29M
Analysts83.08
Price Target20.49 (46.88%)
Short Float %6.59%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend1.58
Dividend Growth(5Y)25.86%
DP138.05%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.15%
Min EPS beat(2)-21.15%
Max EPS beat(2)-9.14%
EPS beat(4)1
Avg EPS beat(4)-7.42%
Min EPS beat(4)-21.15%
Max EPS beat(4)1.92%
EPS beat(8)4
Avg EPS beat(8)-0.18%
EPS beat(12)5
Avg EPS beat(12)-5.16%
EPS beat(16)7
Avg EPS beat(16)-3.91%
Revenue beat(2)2
Avg Revenue beat(2)7.71%
Min Revenue beat(2)6.84%
Max Revenue beat(2)8.58%
Revenue beat(4)3
Avg Revenue beat(4)5.02%
Min Revenue beat(4)-6.14%
Max Revenue beat(4)10.83%
Revenue beat(8)4
Avg Revenue beat(8)3.48%
Revenue beat(12)7
Avg Revenue beat(12)9.6%
Revenue beat(16)11
Avg Revenue beat(16)13.64%
PT rev (1m)3.68%
PT rev (3m)0.48%
EPS NQ rev (1m)-7.45%
EPS NQ rev (3m)-233.19%
EPS NY rev (1m)-24.23%
EPS NY rev (3m)-48.4%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-4.74%
Revenue NY rev (1m)1.5%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 12.64 | ||
| P/S | 1.59 | ||
| P/FCF | 15.57 | ||
| P/OCF | 6.15 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)0.88
EY6.31%
EPS(NY)1.1
Fwd EY7.91%
FCF(TTM)0.9
FCFY6.42%
OCF(TTM)2.27
OCFY16.27%
SpS8.77
BVpS21.02
TBVpS21.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 5.06% | ||
| ROCE | 4.47% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 3.64% | ||
| OM | 11.76% | ||
| PM (TTM) | 12.12% | ||
| GM | 40.14% | ||
| FCFM | 10.22% |
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%
ROICexcg growth 3Y-24.91%
ROICexcg 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 85.38% | ||
| Cap/Sales | 15.66% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 85.95% | ||
| Profit Quality | 84.27% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 2.43 |
F-Score6
WACC8.61%
ROIC/WACC0.41
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)-20%
EPS 3Y-26.99%
EPS 5YN/A
EPS Q2Q%-157.14%
EPS Next Y-78.02%
EPS Next 2Y-18.2%
EPS Next 3Y4.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.4%
Revenue growth 3Y-8.22%
Revenue growth 5Y1.66%
Sales Q2Q%-39.31%
Revenue Next Year-13.98%
Revenue Next 2Y-6.08%
Revenue Next 3Y-12%
Revenue Next 5YN/A
EBIT growth 1Y-18.54%
EBIT growth 3Y-26.73%
EBIT growth 5YN/A
EBIT Next Year7.32%
EBIT Next 3Y20.85%
EBIT Next 5YN/A
FCF growth 1Y-73.3%
FCF growth 3Y-14.83%
FCF growth 5Y50.46%
OCF growth 1Y-37.62%
OCF growth 3Y-18.12%
OCF growth 5Y16.35%