GOLDEN OCEAN GROUP LTD (GOGL) Stock Fundamental Analysis
NASDAQ:GOGL - Nasdaq - BMG396372051 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GOGL. GOGL was compared to 29 industry peers in the Marine Transportation industry. While GOGL is still in line with the averages on profitability rating, there are concerns on its financial health. GOGL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GOGL had positive earnings in the past year.
GOGL had a positive operating cash flow in the past year.
Of the past 5 years GOGL 4 years were profitable.
In the past 5 years GOGL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GOGL (7.01%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 12.54%, GOGL is in line with its industry, outperforming 57.14% of the companies in the same industry.
GOGL has a Return On Invested Capital of 8.54%. This is in the better half of the industry: GOGL outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOGL is in line with the industry average of 8.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 12.54% | ||
| ROIC | 8.54% |
ROA(3y)10.89%
ROA(5y)5.77%
ROE(3y)19.09%
ROE(5y)9.93%
ROIC(3y)9.18%
ROIC(5y)6.3%
1.3 Margins
The Profit Margin of GOGL (23.89%) is better than 60.71% of its industry peers.
In the last couple of years the Profit Margin of GOGL has remained more or less at the same level.
GOGL has a Operating Margin of 34.12%. This is in the better half of the industry: GOGL outperforms 60.71% of its industry peers.
In the last couple of years the Operating Margin of GOGL has remained more or less at the same level.
GOGL has a Gross Margin (52.94%) which is comparable to the rest of the industry.
GOGL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.12% | ||
| PM (TTM) | 23.89% | ||
| GM | 52.94% |
OM growth 3Y57.95%
OM growth 5Y-0.58%
PM growth 3YN/A
PM growth 5Y-0.32%
GM growth 3Y6.19%
GM growth 5Y-3.46%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GOGL is creating some value.
Compared to 1 year ago, GOGL has less shares outstanding
The number of shares outstanding for GOGL has been increased compared to 5 years ago.
GOGL has a worse debt/assets ratio than last year.
2.2 Solvency
GOGL has an Altman-Z score of 1.55. This is a bad value and indicates that GOGL is not financially healthy and even has some risk of bankruptcy.
GOGL has a Altman-Z score of 1.55. This is comparable to the rest of the industry: GOGL outperforms 57.14% of its industry peers.
The Debt to FCF ratio of GOGL is 4.56, which is a neutral value as it means it would take GOGL, 4.56 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.56, GOGL is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that GOGL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, GOGL perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.56 | ||
| Altman-Z | 1.55 |
ROIC/WACC1.15
WACC7.44%
2.3 Liquidity
GOGL has a Current Ratio of 1.22. This is a normal value and indicates that GOGL is financially healthy and should not expect problems in meeting its short term obligations.
GOGL has a Current ratio of 1.22. This is in the lower half of the industry: GOGL underperforms 64.29% of its industry peers.
A Quick Ratio of 1.22 indicates that GOGL should not have too much problems paying its short term obligations.
GOGL has a Quick ratio of 1.22. This is in the lower half of the industry: GOGL underperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.62% over the past year.
GOGL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.73% yearly.
GOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.81%.
Measured over the past years, GOGL shows a small growth in Revenue. The Revenue has been growing by 6.19% on average per year.
EPS 1Y (TTM)108.62%
EPS 3YN/A
EPS 5Y0.73%
EPS Q2Q%100%
Revenue 1Y (TTM)14.81%
Revenue growth 3Y13.37%
Revenue growth 5Y6.19%
Sales Q2Q%31.92%
3.2 Future
The Earnings Per Share is expected to grow by 2.24% on average over the next years.
The Revenue is expected to decrease by -2.62% on average over the next years.
EPS Next Y123.22%
EPS Next 2Y60.34%
EPS Next 3Y46.07%
EPS Next 5Y2.24%
Revenue Next Year22.77%
Revenue Next 2Y11.3%
Revenue Next 3Y10.31%
Revenue Next 5Y-2.62%
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
GOGL is valuated cheaply with a Price/Earnings ratio of 7.79.
Compared to the rest of the industry, the Price/Earnings ratio of GOGL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.63. GOGL is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.55, the valuation of GOGL can be described as very cheap.
60.71% of the companies in the same industry are more expensive than GOGL, based on the Price/Forward Earnings ratio.
GOGL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOGL is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
GOGL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.18 | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
GOGL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GOGL's earnings are expected to grow with 46.07% in the coming years.
PEG (NY)0.06
PEG (5Y)10.68
EPS Next 2Y60.34%
EPS Next 3Y46.07%
5. Dividend
5.1 Amount
GOGL has a Yearly Dividend Yield of 12.83%, which is a nice return.
GOGL's Dividend Yield is rather good when compared to the industry average which is at 14.52. GOGL pays more dividend than 85.71% of the companies in the same industry.
GOGL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.83% |
5.2 History
The dividend of GOGL has a limited annual growth rate of 1.95%.
GOGL has been paying a dividend for at least 10 years, so it has a reliable track record.
GOGL has decreased its dividend recently.
Dividend Growth(5Y)1.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GOGL pays out 82.70% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GOGL is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP82.7%
EPS Next 2Y60.34%
EPS Next 3Y46.07%
9.43
-0.27 (-2.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners39.78%
Inst Owner Change7.01%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap1.89B
Analysts78.67
Price Target15.22 (61.4%)
Short Float %3.77%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.83% |
Yearly Dividend0.5
Dividend Growth(5Y)1.95%
DP82.7%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.5%
Min EPS beat(2)-13.68%
Max EPS beat(2)2.68%
EPS beat(4)3
Avg EPS beat(4)4.42%
Min EPS beat(4)-13.68%
Max EPS beat(4)22.92%
EPS beat(8)7
Avg EPS beat(8)31.14%
EPS beat(12)10
Avg EPS beat(12)25.28%
EPS beat(16)13
Avg EPS beat(16)22.7%
Revenue beat(2)1
Avg Revenue beat(2)1.51%
Min Revenue beat(2)-0.42%
Max Revenue beat(2)3.45%
Revenue beat(4)1
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)3.45%
Revenue beat(8)5
Avg Revenue beat(8)14.11%
Revenue beat(12)9
Avg Revenue beat(12)20.22%
Revenue beat(16)13
Avg Revenue beat(16)24.3%
PT rev (1m)0%
PT rev (3m)-8.02%
EPS NQ rev (1m)-36.2%
EPS NQ rev (3m)-53.82%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-13.23%
Revenue NQ rev (1m)-17.34%
Revenue NQ rev (3m)-25.18%
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)-4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.55 | ||
| P/S | 1.86 | ||
| P/FCF | 6.18 | ||
| P/OCF | 4.83 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)1.21
EY12.83%
EPS(NY)1.44
Fwd EY15.27%
FCF(TTM)1.53
FCFY16.19%
OCF(TTM)1.95
OCFY20.7%
SpS5.06
BVpS9.63
TBVpS9.63
PEG (NY)0.06
PEG (5Y)10.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 12.54% | ||
| ROCE | 10.81% | ||
| ROIC | 8.54% | ||
| ROICexc | 8.86% | ||
| ROICexgc | 8.86% | ||
| OM | 34.12% | ||
| PM (TTM) | 23.89% | ||
| GM | 52.94% | ||
| FCFM | 30.19% |
ROA(3y)10.89%
ROA(5y)5.77%
ROE(3y)19.09%
ROE(5y)9.93%
ROIC(3y)9.18%
ROIC(5y)6.3%
ROICexc(3y)9.68%
ROICexc(5y)6.65%
ROICexgc(3y)9.68%
ROICexgc(5y)6.65%
ROCE(3y)11.62%
ROCE(5y)7.98%
ROICexcg growth 3Y61.83%
ROICexcg growth 5Y-2.7%
ROICexc growth 3Y61.83%
ROICexc growth 5Y-2.7%
OM growth 3Y57.95%
OM growth 5Y-0.58%
PM growth 3YN/A
PM growth 5Y-0.32%
GM growth 3Y6.19%
GM growth 5Y-3.46%
F-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.56 | ||
| Debt/EBITDA | 2.58 | ||
| Cap/Depr | 59.81% | ||
| Cap/Sales | 8.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.11% | ||
| Profit Quality | 126.36% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 1.55 |
F-Score8
WACC7.44%
ROIC/WACC1.15
Cap/Depr(3y)253.01%
Cap/Depr(5y)165.76%
Cap/Sales(3y)32.13%
Cap/Sales(5y)21.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)108.62%
EPS 3YN/A
EPS 5Y0.73%
EPS Q2Q%100%
EPS Next Y123.22%
EPS Next 2Y60.34%
EPS Next 3Y46.07%
EPS Next 5Y2.24%
Revenue 1Y (TTM)14.81%
Revenue growth 3Y13.37%
Revenue growth 5Y6.19%
Sales Q2Q%31.92%
Revenue Next Year22.77%
Revenue Next 2Y11.3%
Revenue Next 3Y10.31%
Revenue Next 5Y-2.62%
EBIT growth 1Y93.64%
EBIT growth 3Y79.07%
EBIT growth 5Y5.57%
EBIT Next Year159.32%
EBIT Next 3Y43.94%
EBIT Next 5YN/A
FCF growth 1Y-40.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.6%
OCF growth 3Y23.73%
OCF growth 5Y7.39%