GENCO SHIPPING & TRADING LTD (GNK) Stock Fundamental Analysis
NYSE:GNK - New York Stock Exchange, Inc. - MHY2685T1313 - Common Stock - Currency: USD
GNK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 34 industry peers in the Marine Transportation industry. GNK has only an average score on both its financial health and profitability. GNK has a expensive valuation and it also scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: GNK reported negative net income in multiple years.
GNK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GNK has a Return On Assets of 4.40%. This is comparable to the rest of the industry: GNK outperforms 55.88% of its industry peers.
The Return On Equity of GNK (5.06%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.53%, GNK perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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
GNK has a Profit Margin (12.12%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GNK has declined.
GNK has a Operating Margin (11.76%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GNK has declined.
With a Gross Margin value of 40.14%, GNK is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
GNK's Gross Margin has improved in the last couple of years.
| 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 has a better Altman-Z score (2.43) than 85.29% of its industry peers.
The Debt to FCF ratio of GNK is 2.15, which is a good value as it means it would take GNK, 2.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.15, GNK belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
GNK has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
GNK's Debt to Equity ratio of 0.09 is amongst the best of the industry. GNK outperforms 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
GNK has a Current Ratio of 1.79. 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 Current ratio of 1.79. This is in the better half of the industry: GNK outperforms 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
GNK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.00%.
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.
The Revenue has decreased by -7.40% in the past 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
The Earnings Per Share is expected to grow by 4.60% on average over the next years.
Based on estimates for the next years, GNK will show a very negative growth in Revenue. The Revenue will decrease by -12.01% on average per year.
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
Based on the Price/Earnings ratio of 15.88, the valuation of GNK can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as GNK.
GNK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.65, GNK is valued correctly.
GNK's Price/Forward Earnings is on the same level as the industry average.
GNK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 12.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GNK.
GNK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.59 | ||
| EV/EBITDA | 5.75 |
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.
GNK's Dividend Yield is a higher than the industry average which is at 7.55.
GNK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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
138.05% of the earnings are spent on dividend by GNK. This is not a sustainable payout ratio.
The dividend of GNK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP138.05%
EPS Next 2Y-18.2%
EPS Next 3Y4.6%
13.97
+0.02 (+0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners66.64%
Inst Owner Change0%
Ins Owners1.72%
Ins Owner Change7.23%
Market Cap600.15M
Analysts83.08
Price Target20.49 (46.67%)
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 | 15.88 | ||
| Fwd PE | 12.65 | ||
| P/S | 1.59 | ||
| P/FCF | 15.59 | ||
| P/OCF | 6.16 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 5.75 |
EPS(TTM)0.88
EY6.3%
EPS(NY)1.1
Fwd EY7.9%
FCF(TTM)0.9
FCFY6.41%
OCF(TTM)2.27
OCFY16.25%
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%