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. The financial health of GNK is average, but there are quite some concerns on its profitability. GNK does not seem to be growing, but still is valued expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

GNK had negative earnings in the past year.
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.
GNK had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

GNK's Return On Assets of -0.64% is on the low side compared to the rest of the industry. GNK is outperformed by 60.00% of its industry peers.
With a Return On Equity value of -0.80%, GNK is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
GNK's Return On Invested Capital of 0.29% is on the low side compared to the rest of the industry. GNK is outperformed by 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GNK is in line with the industry average of 7.59%.
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.
Looking at the Operating Margin, with a value of 1.18%, GNK is doing worse than 62.86% of the companies in the same industry.
GNK's Operating Margin has declined in the last couple of years.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GNK 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
Compared to 1 year ago, GNK has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.02 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 2.02, GNK is doing good in the industry, outperforming 68.57% 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	2.02

ROIC/WACC0.03

WACC8.61%

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.
A Quick Ratio of 1.98 indicates that GNK should not have too much problems paying its short term obligations.
The Quick ratio of GNK (1.98) is better than 62.86% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.36
Quick Ratio	1.98

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

The Earnings Per Share is expected to grow by 13.28% on average over the next years. This is quite good.
The Revenue is expected to decrease by -2.92% on average over the next years.

EPS Next Y-95.46%

EPS Next 2Y-9.78%

EPS Next 3Y13.28%

EPS Next 5YN/A

Revenue Next Year-19.14%

Revenue Next 2Y-5.52%

Revenue Next 3Y-2.92%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for GNK. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 15.06, which indicates a correct 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 rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	15.06

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNK indicates a slightly more expensive valuation: GNK is more expensive than 62.86% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	12.24

4.3 Compensation for Growth

GNK's earnings are expected to grow with 13.28% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-9.78%

EPS Next 3Y13.28%

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5. Dividend

5.1 Amount

GNK has a Yearly Dividend Yield of 3.00%.
GNK's Dividend Yield is a higher than the industry average which is at 5.57.
GNK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	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.
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-9.78%

EPS Next 3Y13.28%

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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 -95.46% in the next year.