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Genco Shipping (GNK)
NYSE:GNK
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Genco Shipping
(NYSE:GNK)
70Outperform
Genco Shipping (GNK) vs. S&P 500 (SPY)
Market Cap
$590.91M
Dividend Yield11.36%
Average Volume (3M)669.63K
Price to Earnings (P/E)8.2
Beta (1Y)1.04
Revenue Growth10.21%
EPS GrowthN/A
CountryUS
Employees1,105
SectorIndustrials
Sector Strength72
IndustryTransportation
Share Statistics
EPS (TTM)1.75
Shares Outstanding42,757,896
10 Day Avg. Volume954,997
30 Day Avg. Volume669,633
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)1.44
Price to Cash Flow (P/CF)5.10
P/FCF Ratio5.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.75Price Target Upside38.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Genco Shipping Business Overview & Revenue Model
Company DescriptionGenco Shipping & Trading Limited (GNK) is a prominent player in the maritime transportation industry, primarily focused on dry bulk shipping. The company operates a modern and diverse fleet of vessels that transport major bulk commodities such as iron ore, coal, grain, steel products, and other dry bulk cargoes across the globe. Genco Shipping is headquartered in New York, USA, and is committed to providing reliable and efficient shipping services to its clients by leveraging its operational expertise and extensive market knowledge.
How the Company Makes MoneyGenco Shipping makes money through the chartering of its dry bulk vessels to customers under spot market voyages or time charters. Revenue is mainly generated from the hire rates paid by clients for the transportation of dry bulk commodities. The company's earnings are significantly influenced by the prevailing conditions in the dry bulk shipping market, which are driven by global demand and supply dynamics for commodities. Genco's revenue streams also depend on the efficient management of its fleet and strategic positioning of its vessels to capitalize on lucrative shipping routes. While the company may engage in partnerships with various chartering clients and maritime service providers, the core factor contributing to its earnings remains the freight rates in the dry bulk shipping market.
Genco Shipping Financial Statement Overview
Summary
Genco Shipping demonstrates solid financial footing with strong equity and cash flow management. Promising recent profit margins and revenue growth are somewhat offset by historical volatility in earnings and inconsistent free cash flow. The company's low leverage is a favorable factor in the transportation industry.Income Statement
Genco Shipping has shown a strong gross profit margin of approximately 67.88% for 2024, indicating efficient cost management. However, the net profit margin is lower at 18.06%, showing potential challenges in controlling other expenses. Revenue has seen considerable growth from 2023 to 2024, but the previous year was marked by a net loss, indicating some volatility in earnings.65
Positive
Balance Sheet
The company maintains a healthy equity position with a debt-to-equity ratio of 0.01, reflecting low leverage and reduced financial risk. The return on equity is strong at 8.24% for 2024, indicating effective use of equity capital. The equity ratio of approximately 87.72% reinforces the company's solid financial stability.72
Positive
Cash Flow
Genco Shipping's cash flow analysis reveals a robust operating cash flow that significantly exceeds net income, with an operating cash flow to net income ratio of approximately 1.66. However, free cash flow growth has been inconsistent over the years, affecting the predictability of future cash generation.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 423.02M | 383.82M | 536.93M | 547.13M | 355.56M | Gross Profit |
| 116.68M | 68.16M | 196.26M | 226.26M | 35.68M | EBIT |
| 87.05M | -5.85M | 167.24M | 201.12M | 7.63M | EBITDA |
| 159.90M | 60.62M | 230.06M | 255.02M | -136.63M | Net Income Common Stockholders |
| 76.40M | -12.87M | 158.58M | 182.01M | -247.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 43.69M | 46.54M | 58.14M | 114.57M | 143.87M | Total Assets |
| 1.06B | 1.14B | 1.17B | 1.20B | 1.23B | Total Debt |
| 7.04M | 194.26M | 171.12M | 246.29M | 449.40M | Net Debt |
| -36.65M | 147.72M | 112.98M | 131.72M | 305.53M | Total Liabilities |
| 128.37M | 227.26M | 205.56M | 286.33M | 487.81M | Stockholders Equity |
| 926.74M | 913.26M | 967.43M | 916.59M | 744.99M |
| Cash Flow | Free Cash Flow | |||
| 70.17M | -2.23M | 133.28M | 113.66M | 16.86M | Operating Cash Flow |
| 126.85M | 91.78M | 189.32M | 231.12M | 36.90M | Investing Cash Flow |
| 47.85M | -91.62M | -55.02M | -67.57M | 37.44M | Financing Cash Flow |
| -177.55M | -17.40M | -190.74M | -222.69M | -56.91M |
Genco Shipping Technical Analysis
Negative
13.50
Price Trends
14.00
Negative
14.75
Negative
16.52
Negative
Market Momentum
-0.13
Positive
41.17
Neutral
17.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNK, the sentiment is Negative. The current price of 13.5 is below the 20-day moving average (MA) of 13.98, below the 50-day MA of 14.00, and below the 200-day MA of 16.52, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 17.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNK.
Genco Shipping Risk Analysis
Genco Shipping disclosed 10 risk factors in its most recent earnings report. Genco Shipping reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Genco Shipping Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $230.67M | 2.06 | 35.83% | 7.17% | 13.90% | 3.21% | |
77 Outperform | $1.87B | 5.74 | 14.71% | 15.87% | 33.31% | 62.94% | |
73 Outperform | $1.65B | 7.86 | 11.68% | 14.58% | 14.81% | 96.97% | |
71 Outperform | $386.45M | 4.57 | 11.99% | 5.45% | 10.27% | 36.29% | |
70 Outperform | $590.91M | 8.16 | 8.30% | 11.36% | 10.21% | ― | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
57 Neutral | $201.36M | 36.20 | 2.56% | 13.28% | -16.79% | -89.43% |
* Industrials Sector Average
Performance Comparison
GNK
Genco Shipping
13.50
-6.00
-30.77%
DSX
Diana Shipping
1.75
-1.14
-39.45%
ESEA
Euroseas
32.49
-2.31
-6.64%
SB
Safe Bulkers
3.71
-1.10
-22.87%
SBLK
Star Bulk Carriers
15.79
-6.45
-29.00%
GOGL
Golden Ocean Group
7.78
-4.38
-36.02%
Genco Shipping Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -5.59% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a robust financial performance in 2024 with significant growth in EBITDA, dividends, and fleet modernization. However, there are challenges in the form of downward volatility in early 2025 freight rates and a high drydocking year. The company's strong financial position and low leverage provide a buffer against these challenges.Highlights
Strong Financial Performance in 2024
Genco's EBITDA exceeded $150 million, a nearly 50% increase from 2023 levels. The company also increased time charter equivalent rates to $19,107 per day from $14,766 the prior year.
Significant Dividend Increase
Genco increased distributions to shareholders by 70%, declaring $1.46 per share in dividends during the year, maintaining a strong track record of providing dividends through market cycles.
Fleet Expansion and Modernization
Acquired a high specification Capesize vessel, Genco Intrepid, as part of the fleet renewal strategy, increasing investment in modern vessels to $285 million since 2021.
Low Financial Leverage
Industry-low net loan to value of 5% and over $330 million in undrawn revolver availability, indicating strong financial health and flexibility.
Lowlights
Downward Volatility in Early 2025
The beginning of 2025 saw downward volatility in the dry bulk market due to seasonal factors, impacting near-term freight rates.
Challenges in Freight Rates
Despite strong fundamentals, Genco has faced softening freight rates, particularly affecting the first quarter of 2025.
High Drydocking Year in 2025
Anticipation of a high drydocking year, which could impact fleet utilization and operational costs in 2025.
Company Guidance
During the Genco Shipping & Trading Limited fourth quarter 2024 earnings call, several key metrics and strategic decisions were highlighted. The company reported an EBITDA exceeding $150 million, marking a nearly 50% increase from the previous year, with time charter equivalent (TCE) rates rising to $19,107 per day from $14,766. Genco noted a 70% increase in shareholder distributions, declaring $1.46 per share in dividends for 2024, with a fourth-quarter dividend of $0.30 per share, marking their 22nd consecutive dividend. They emphasized their strong financial position with a low net loan-to-value of 5% and over $330 million in undrawn revolver availability. In 2024, Genco voluntarily reduced its debt by $110 million, expecting a $6 million annualized interest expense reduction. Looking ahead, they have fixed 75% of their Q1 2025 days at $12,366 per day, with a cash flow breakeven rate of $8,873 per vessel per day, while planning to frontload drydockings in the first half of 2025. The company continues to capitalize on market opportunities by acquiring high-specification Capesize vessels, aligning with its value strategy of dividends, deleveraging, and growth.Genco Shipping Corporate Events
Financial Disclosures
Genco Shipping Updates Q4 2024 TCE Rate Estimate
Neutral
Dec 20, 2024
Genco Shipping Company has provided an update on its estimated time charter equivalent (TCE) rate for the fourth quarter of 2024, which is approximately $18,300 per day for 95% of its available days. This estimate reflects the company’s operating performance based on period and spot fixtures, although actual results may vary.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.