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GOGL

Golden Ocean Group NasdaqGS:GOGL Stock Report

Last Price

US$8.43

Market Cap

US$1.7b

7D

14.4%

1Y

-20.9%

Updated

06 Oct, 2022

Data

Company Financials +
GOGL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends3/6

GOGL Stock Overview

Golden Ocean Group Limited, a shipping company, owns and operates a fleet of dry bulk vessels comprising Newcastlemax, Capesize, Panamax, and Ultramax vessels worldwide.

Golden Ocean Group Limited Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Golden Ocean Group
Historical stock prices
Current Share PriceUS$8.43
52 Week HighUS$16.46
52 Week LowUS$7.24
Beta1.37
1 Month Change-3.44%
3 Month Change-19.10%
1 Year Change-20.92%
3 Year Change35.53%
5 Year Change3.44%
Change since IPO-60.24%

Recent News & Updates

Oct 06

Golden Ocean Group - Buy The Pullback In This Leading Dry Bulk Shipper

Summary Golden Ocean is one of the world's largest publicly-traded dry bulk shippers, with a particular focus on the larger market segments. Strong financial condition and industry low break-even levels position the company well for a potential market recovery next year. Management's ongoing focus has been on returning capital to shareholders, with an aggregate $3.60 per share in cash dividends paid since the beginning of last year. Despite the recent market weakness, Golden Ocean is likely to deliver another set of strong quarterly results next month and keep its dividend at healthy levels. New $100 million share buyback program is likely to put a short-term floor under Golden Ocean's stock price. Speculative investors looking for exposure to the larger dry bulk market segments should consider scaling into the shares on weakness. Last week, I used the pronounced market weakness to enter a trading position in leading dry bulk shipper Golden Ocean Group (GOGL) or "Golden Ocean". Introducing Golden Ocean The company commands a modern fleet of 94 dry bulk carriers with an average age of six years and clear focus on the larger vessel classes (Capesize and Panamax). Golden Ocean is controlled by Norwegian-born shipping magnate John Fredriksen who beneficially owns almost 40% of outstanding common shares. The company is dual-listed in Oslo and New York and, with a market capitalization of $1.75 billion, among the most valuable dry bulk shipping companies in the world. Low Break-Even Levels With industry-low break-even rates of $13,000 for Capesizes and $9,350 for the Panamax fleet, Golden Ocean is well-positioned for a potential industry recovery next year after an ugly combination of much weaker-than-expected Chinese iron ore demand and rapidly easing port congestion has put some pressure on charter rates as of late. Dividend Focus Besides keeping a relatively young fleet profile, management's ongoing focus has been on returning capital to shareholders, with an aggregate $3.60 in cash dividends per common share paid since the beginning of 2021. Company Presentation Strong Financial Results Six weeks ago, Golden Ocean reported strong first-half results, with Adjusted EBITDA of $341 million and $279 million in cash flow from operations both up significantly on a year-over-year basis. Moreover, the company managed to contract the vast majority of available days for the third quarter ahead of the recent drop in charter rates, which should result in another strong quarterly report next month. Shareholders are likely to receive a dividend of at least $0.50 per common share. Company Presentation Q4 And Particularly Q1 Likely To Be Weaker That said, based on current Forward Freight Agreement ("FFA") rates, Q4 and particularly Q1 are likely to be weaker even with the majority of the fleet currently enjoying healthy scrubber premiums. Braemar Atlantic Securities Should Capesize FFAs for Q1 remain in the current range, the company's larger vessels are unlikely to generate meaningful profits even when accounting for material Newcastlemax and scrubber premiums. The Panamax fleet would do somewhat better, but rates remain a far cry of what investors have gotten used to over the past two years. But even when assuming no improvements in charter rates, Golden Ocean is still likely to pay a dividend for both Q4 and Q1 albeit at reduced levels. Potential Market Recovery Next Year While inflation and related recession fears are currently impacting demand, with congestion now below historical averages, an order book at record lows and new environmental regulations likely to result in materially reduced sailing speeds next year, the industry outlook isn't all that bad. Company Presentation Should China's government finally pull through with a large-scale stimulus, iron ore demand is likely to recover materially, which in turn would benefit Capesize charter rates. Valuation And Leverage In a recent note, Fearnley Securities assessed the company's net asset value ("NAV") at $11. While a number of smaller and lower-quality peers are trading at even more depressed valuations, the recent sell-off provides investors the rare opportunity to buy into a market leader at a sizeable discount to NAV. At a loan-to-value ("LTV") ratio of 37%, leverage shouldn't be an issue for the time being. $100 Million Share Buyback Program Following the recent 50%+ pullback from multi-year highs marked in Q2, I wasn't exactly surprised by Tuesday's $100 million share buyback announcement:

Sep 22
Is Golden Ocean Group (NASDAQ:GOGL) Using Too Much Debt?

Is Golden Ocean Group (NASDAQ:GOGL) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

GOGLUS ShippingUS Market
7D14.4%4.4%1.9%
1Y-20.9%-22.6%-18.8%

Return vs Industry: GOGL exceeded the US Shipping industry which returned -22.6% over the past year.

Return vs Market: GOGL underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is GOGL's price volatile compared to industry and market?
GOGL volatility
GOGL Average Weekly Movement7.8%
Shipping Industry Average Movement7.4%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: GOGL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GOGL's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a37Ulrik Andersenhttps://www.goldenocean.bm

Golden Ocean Group Limited, a shipping company, owns and operates a fleet of dry bulk vessels comprising Newcastlemax, Capesize, Panamax, and Ultramax vessels worldwide. It owns and operates dry bulk vessels in the spot and time charter markets. The company transports bulk commodities, such as ores, coal, grains, and fertilizers.

Golden Ocean Group Limited Fundamentals Summary

How do Golden Ocean Group's earnings and revenue compare to its market cap?
GOGL fundamental statistics
Market CapUS$1.69b
Earnings (TTM)US$688.22m
Revenue (TTM)US$1.35b

2.5x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GOGL income statement (TTM)
RevenueUS$1.35b
Cost of RevenueUS$560.28m
Gross ProfitUS$785.02m
Other ExpensesUS$96.80m
EarningsUS$688.22m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 30, 2022

Earnings per share (EPS)3.43
Gross Margin58.35%
Net Profit Margin51.16%
Debt/Equity Ratio61.8%

How did GOGL perform over the long term?

See historical performance and comparison

Dividends

42.7%

Current Dividend Yield

83%

Payout Ratio