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 34 industry peers in the Marine Transportation industry. There are concerns on the financial health of GOGL while its profitability can be described as average. GOGL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GOGL had positive earnings in the past year.
In the past year GOGL had a positive cash flow from operations.
GOGL had positive earnings in 4 of the past 5 years.
In the past 5 years GOGL always reported a positive cash flow from operatings.
1.2 Ratios
GOGL has a Return On Assets (3.35%) which is in line with its industry peers.
GOGL has a Return On Equity (6.23%) which is in line with its industry peers.
GOGL's Return On Invested Capital of 4.92% is in line compared to the rest of the industry. GOGL outperforms 50.00% 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 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 6.23% | ||
| ROIC | 4.92% |
ROA(3y)8%
ROA(5y)6.84%
ROE(3y)13.89%
ROE(5y)11.79%
ROIC(3y)7.46%
ROIC(5y)7.19%
1.3 Margins
GOGL has a Profit Margin (13.16%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GOGL has grown nicely.
GOGL has a Operating Margin (21.92%) which is in line with its industry peers.
In the last couple of years the Operating Margin of GOGL has grown nicely.
Looking at the Gross Margin, with a value of 42.48%, GOGL is in line with its industry, outperforming 44.12% of the companies in the same industry.
In the last couple of years the Gross Margin of GOGL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.92% | ||
| PM (TTM) | 13.16% | ||
| GM | 42.48% |
OM growth 3Y-10.52%
OM growth 5Y16.22%
PM growth 3Y-19.28%
PM growth 5Y34.33%
GM growth 3Y-6.9%
GM growth 5Y1.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GOGL is still creating some value.
The number of shares outstanding for GOGL remains at a similar level compared to 1 year ago.
GOGL has more shares outstanding than it did 5 years ago.
GOGL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that GOGL is in the distress zone and has some risk of bankruptcy.
GOGL has a Altman-Z score of 1.08. This is comparable to the rest of the industry: GOGL outperforms 58.82% of its industry peers.
The Debt to FCF ratio of GOGL is 8.36, which is on the high side as it means it would take GOGL, 8.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GOGL (8.36) is better than 64.71% of its industry peers.
GOGL has a Debt/Equity ratio of 0.66. This is a neutral value indicating GOGL is somewhat dependend on debt financing.
GOGL has a Debt to Equity ratio of 0.66. This is comparable to the rest of the industry: GOGL outperforms 41.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.36 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.68
WACC7.28%
2.3 Liquidity
A Current Ratio of 0.81 indicates that GOGL may have some problems paying its short term obligations.
GOGL's Current ratio of 0.81 is on the low side compared to the rest of the industry. GOGL is outperformed by 79.41% of its industry peers.
GOGL has a Quick Ratio of 0.81. This is a bad value and indicates that GOGL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.81, GOGL is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
GOGL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.71%.
Measured over the past years, GOGL shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.14% on average per year.
GOGL shows a decrease in Revenue. In the last year, the revenue decreased by -7.73%.
GOGL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
EPS 1Y (TTM)-38.71%
EPS 3Y-23.79%
EPS 5Y30.14%
EPS Q2Q%-166.67%
Revenue 1Y (TTM)-7.73%
Revenue growth 3Y-6.98%
Revenue growth 5Y6.53%
Sales Q2Q%-27.85%
3.2 Future
GOGL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.94% yearly.
GOGL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.10% yearly.
EPS Next Y-53.1%
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
EPS Next 5YN/A
Revenue Next Year-17.68%
Revenue Next 2Y-4.37%
Revenue Next 3Y-3.1%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 13.74 indicates a correct valuation of GOGL.
GOGL's Price/Earnings ratio is in line with the industry average.
GOGL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
The Price/Forward Earnings ratio is 7.48, which indicates a rather cheap valuation of GOGL.
GOGL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, GOGL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 7.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOGL is on the same level as its industry peers.
61.76% of the companies in the same industry are more expensive than GOGL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.05 | ||
| EV/EBITDA | 8.6 |
4.3 Compensation for Growth
A cheap valuation may be justified as GOGL's earnings are expected to decrease with -13.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.64%, GOGL is a good candidate for dividend investing.
GOGL's Dividend Yield is rather good when compared to the industry average which is at 7.93. GOGL pays more dividend than 91.18% of the companies in the same industry.
GOGL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.64% |
5.2 History
The dividend of GOGL is nicely growing with an annual growth rate of 29.94%!
GOGL has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of GOGL decreased recently.
Dividend Growth(5Y)29.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
184.66% of the earnings are spent on dividend by GOGL. This is not a sustainable payout ratio.
GOGL's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP184.66%
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
7.83
+0.4 (+5.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners34.43%
Inst Owner Change-5.58%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap1.56B
Analysts76.67
Price Target10.35 (32.18%)
Short Float %6.02%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.64% |
Yearly Dividend1.2
Dividend Growth(5Y)29.94%
DP184.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.88%
Min EPS beat(2)-36.86%
Max EPS beat(2)-26.9%
EPS beat(4)1
Avg EPS beat(4)-18.69%
Min EPS beat(4)-36.86%
Max EPS beat(4)2.68%
EPS beat(8)5
Avg EPS beat(8)14.66%
EPS beat(12)8
Avg EPS beat(12)15.76%
EPS beat(16)12
Avg EPS beat(16)18.49%
Revenue beat(2)2
Avg Revenue beat(2)15.93%
Min Revenue beat(2)15.19%
Max Revenue beat(2)16.68%
Revenue beat(4)3
Avg Revenue beat(4)8.72%
Min Revenue beat(4)-0.42%
Max Revenue beat(4)16.68%
Revenue beat(8)5
Avg Revenue beat(8)9.6%
Revenue beat(12)9
Avg Revenue beat(12)18.12%
Revenue beat(16)13
Avg Revenue beat(16)22.97%
PT rev (1m)-10.15%
PT rev (3m)-19.23%
EPS NQ rev (1m)-32.74%
EPS NQ rev (3m)-51.61%
EPS NY rev (1m)-34.86%
EPS NY rev (3m)-58.91%
Revenue NQ rev (1m)-10.69%
Revenue NQ rev (3m)-10.69%
Revenue NY rev (1m)-7.76%
Revenue NY rev (3m)-9.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 7.48 | ||
| P/S | 1.81 | ||
| P/FCF | 9.05 | ||
| P/OCF | 6.34 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 8.6 |
EPS(TTM)0.57
EY7.28%
EPS(NY)1.05
Fwd EY13.37%
FCF(TTM)0.87
FCFY11.06%
OCF(TTM)1.23
OCFY15.77%
SpS4.33
BVpS9.16
TBVpS9.16
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 6.23% | ||
| ROCE | 6.23% | ||
| ROIC | 4.92% | ||
| ROICexc | 5.1% | ||
| ROICexgc | 5.1% | ||
| OM | 21.92% | ||
| PM (TTM) | 13.16% | ||
| GM | 42.48% | ||
| FCFM | 19.99% |
ROA(3y)8%
ROA(5y)6.84%
ROE(3y)13.89%
ROE(5y)11.79%
ROIC(3y)7.46%
ROIC(5y)7.19%
ROICexc(3y)7.79%
ROICexc(5y)7.57%
ROICexgc(3y)7.79%
ROICexgc(5y)7.57%
ROCE(3y)9.45%
ROCE(5y)9.1%
ROICexcg growth 3Y-16.84%
ROICexcg growth 5Y19.87%
ROICexc growth 3Y-16.84%
ROICexc growth 5Y19.87%
OM growth 3Y-10.52%
OM growth 5Y16.22%
PM growth 3Y-19.28%
PM growth 5Y34.33%
GM growth 3Y-6.9%
GM growth 5Y1.39%
F-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.36 | ||
| Debt/EBITDA | 3.69 | ||
| Cap/Depr | 53.12% | ||
| Cap/Sales | 8.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.11% | ||
| Profit Quality | 151.83% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.08 |
F-Score5
WACC7.28%
ROIC/WACC0.68
Cap/Depr(3y)156.98%
Cap/Depr(5y)170.68%
Cap/Sales(3y)23.29%
Cap/Sales(5y)22.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.71%
EPS 3Y-23.79%
EPS 5Y30.14%
EPS Q2Q%-166.67%
EPS Next Y-53.1%
EPS Next 2Y-3.3%
EPS Next 3Y-13.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.73%
Revenue growth 3Y-6.98%
Revenue growth 5Y6.53%
Sales Q2Q%-27.85%
Revenue Next Year-17.68%
Revenue Next 2Y-4.37%
Revenue Next 3Y-3.1%
Revenue Next 5YN/A
EBIT growth 1Y-26.42%
EBIT growth 3Y-16.77%
EBIT growth 5Y23.81%
EBIT Next Year7.16%
EBIT Next 3Y15.36%
EBIT Next 5YN/A
FCF growth 1Y-32.86%
FCF growth 3Y31.74%
FCF growth 5Y18.21%
OCF growth 1Y-46.05%
OCF growth 3Y-13.29%
OCF growth 5Y18.19%