NasdaqGS:GOGL

Stock Analysis Report

Executive Summary

Golden Ocean Group Limited, a shipping company, engages in the transportation of bulk commodities worldwide.

Rewards

Trading at 82.5% below its fair value

Earnings are forecast to grow 70.13% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 7.38% is not well covered by earnings

Profit margins (3.1%) are lower than last year (13.9%)



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Golden Ocean Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GOGL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

GOGL

0.5%

US Shipping

0.7%

US Market


1 Year Return

-22.6%

GOGL

16.5%

US Shipping

21.1%

US Market

Return vs Industry: GOGL underperformed the US Shipping industry which returned 16.5% over the past year.

Return vs Market: GOGL underperformed the US Market which returned 21.1% over the past year.


Shareholder returns

GOGLIndustryMarket
7 Day-2.0%0.5%0.7%
30 Day1.5%5.7%2.3%
90 Day-17.4%2.9%5.0%
1 Year-18.0%-22.6%19.1%16.5%23.7%21.1%
3 Year44.6%29.4%19.2%12.2%47.0%37.4%
5 Yearn/a-73.3%-74.5%65.7%47.5%

Price Volatility Vs. Market

How volatile is Golden Ocean Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Golden Ocean Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOGL ($5.42) is trading below our estimate of fair value ($31.04)

Significantly Below Fair Value: GOGL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GOGL is poor value based on its PE Ratio (39.3x) compared to the Shipping industry average (19.3x).

PE vs Market: GOGL is poor value based on its PE Ratio (39.3x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: GOGL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: GOGL is overvalued based on its PB Ratio (0.5x) compared to the US Shipping industry average (0.5x).


Next Steps

Future Growth

How is Golden Ocean Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

70.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOGL's forecast earnings growth (70.1% per year) is above the savings rate (1.7%).

Earnings vs Market: GOGL's earnings (70.1% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GOGL's revenue is expected to decline over the next 3 years (-6.5% per year).

High Growth Revenue: GOGL's revenue is forecast to decline over the next 3 years (-6.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GOGL's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Golden Ocean Group performed over the past 5 years?

52.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GOGL has high quality earnings.

Growing Profit Margin: GOGL's current net profit margins (3.1%) are lower than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: GOGL has become profitable over the past 5 years, growing earnings by 52.6% per year.

Accelerating Growth: GOGL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GOGL had negative earnings growth (-77.6%) over the past year, making it difficult to compare to the Shipping industry average (-48.2%).


Return on Equity

High ROE: GOGL's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Golden Ocean Group's financial position?


Financial Position Analysis

Short Term Liabilities: GOGL's short term assets ($273.6M) exceed its short term liabilities ($228.1M).

Long Term Liabilities: GOGL's short term assets ($273.6M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: GOGL's debt to equity ratio (75.4%) is considered high.

Reducing Debt: GOGL's debt to equity ratio has increased from 37.1% to 75.4% over the past 5 years.

Debt Coverage: GOGL's debt is not well covered by operating cash flow (12%).

Interest Coverage: GOGL's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: GOGL has a high level of physical assets or inventory.

Debt Coverage by Assets: GOGL's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Golden Ocean Group's current dividend yield, its reliability and sustainability?

7.38%

Current Dividend Yield


Dividend Yield vs Market

company7.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years7.4%

Current dividend yield vs market & industry

Notable Dividend: GOGL's dividend (7.38%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: GOGL's dividend (7.38%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: GOGL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GOGL has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (235.5%), GOGL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GOGL's dividends in 3 years are forecast to be well covered by earnings (38.3% payout ratio).


Next Steps

Management

What is the CEO of Golden Ocean Group's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Ola Lorentzon (70yo)

0.9yrs

Tenure

0

Mr. Ola Lorentzon serves as the Interim Chief Executive Officer of Golden Ocean Management AS since November 30, 2019. He has been President of ICB since 1987. Mr. Lorentzon served as Principal Executive O ...


Management Age and Tenure

3.1yrs

Average Tenure

52yo

Average Age

Experienced Management: GOGL's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: GOGL's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$262,73222 Mar 19
Greenwich Holdings Ltd.
EntityCompany
Shares50,000
Max PriceUS$5.25
BuyUS$61,45919 Feb 19
Per Heiberg
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares12,000
Max PriceUS$5.12

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ola Lorentzon (70yo)

    Interim CEO & Chairman

    • Tenure: 0.9yrs
  • Per Heiberg (52yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Thomas Semino (45yo)

    Chief Commercial Officer of Golden Ocean Management Asia Pte Ltd

    • Tenure: 3.1yrs
  • Tord Brath

    Head of Global Operations

    • Tenure: 14.2yrs

Board Members

  • John Fredriksen (75yo)

    Director

    • Tenure: 4.8yrs
  • Ola Lorentzon (70yo)

    Interim CEO & Chairman

    • Tenure: 0.9yrs
  • James O’Shaughnessey (55yo)

    Director

    • Tenure: 1.3yrs
  • Ulrika Laurin (48yo)

    Director

    • Tenure: 1.3yrs
  • Marius Hermansen

    Director

    • Tenure: 0.3yrs

Company Information

Golden Ocean Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Golden Ocean Group Limited
  • Ticker: GOGL
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: US$776.565m
  • Shares outstanding: 143.28m
  • Website: https://www.goldenocean.bm

Number of Employees


Location

  • Golden Ocean Group Limited
  • Par-la-Ville Place
  • 14 Par-la-Ville Road
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GOGL ROB (Oslo Bors)USD0.50(REGS)(POST SPLIT)NONOKNo data
GOGLOB (Oslo Bors)COM USD0.05(POST SPLIT)NOUSDNo data
GOGLNasdaqGS (Nasdaq Global Select)YesNew Common SharesUSUSDJan 2007
KT31DB (Deutsche Boerse AG)YesNew Common SharesDEEURJan 2007
GOGLOB (Oslo Bors)YesNew Common SharesNONOKJan 2007
GOGLOBATS-CHIXE (BATS 'Chi-X Europe')YesNew Common SharesGBNOKJan 2007
0RIILSE (London Stock Exchange)YesNew Common SharesGBNOKJan 2007

Biography

Golden Ocean Group Limited, a shipping company, engages in the transportation of bulk commodities worldwide. It owns and operates dry bulk vessels in the spot and time charter markets. The company transpor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 23:49
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.