NYSE:GNK

Stock Analysis Report

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Executive Summary

Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes worldwide.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Genco Shipping & Trading's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GNK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

GNK

4.2%

US Shipping

2.0%

US Market


1 Year Return

-32.3%

GNK

-31.1%

US Shipping

7.1%

US Market

Return vs Industry: GNK underperformed the US Shipping industry which returned -31.1% over the past year.

Return vs Market: GNK underperformed the US Market which returned 7.1% over the past year.


Shareholder returns

GNKIndustryMarket
7 Day2.9%4.2%2.0%
30 Day-19.3%-1.5%6.0%
90 Day-35.0%-20.3%-0.05%
1 Year-26.9%-32.3%-29.5%-31.1%9.5%7.1%
3 Year-43.8%-48.0%-18.8%-23.2%30.7%22.1%
5 Year-92.5%-93.0%-64.4%-68.8%55.6%38.0%

Price Volatility Vs. Market

How volatile is Genco Shipping & Trading's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Genco Shipping & Trading 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: GNK ($4.99) is trading below our estimate of fair value ($48.62)

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


Price To Earnings Ratio

PE vs Industry: GNK is unprofitable, so we can't compare its PE Ratio to the Shipping industry average.

PE vs Market: GNK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GNK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GNK is good value based on its PB Ratio (0.2x) compared to the US Shipping industry average (0.3x).


Next Steps

Future Growth

How is Genco Shipping & Trading forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

108.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: GNK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GNK's is expected to become profitable in the next 3 years.

Revenue vs Market: GNK's revenue is expected to decline over the next 3 years (-16.2% per year).

High Growth Revenue: GNK's revenue is forecast to decline over the next 3 years (-16.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GNK's Return on Equity is forecast to be low in 3 years time (3.1%).


Next Steps

Past Performance

How has Genco Shipping & Trading performed over the past 5 years?

61.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNK is currently unprofitable.

Growing Profit Margin: GNK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GNK is unprofitable, but has reduced losses over the past 5 years at a rate of 61.9% per year.

Accelerating Growth: Unable to compare GNK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GNK is unprofitable, making it difficult to compare its past year earnings growth to the Shipping industry (-62%).


Return on Equity

High ROE: GNK has a negative Return on Equity (-19.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is Genco Shipping & Trading's financial position?


Financial Position Analysis

Short Term Liabilities: GNK's short term assets ($227.5M) exceed its short term liabilities ($116.6M).

Long Term Liabilities: GNK's short term assets ($227.5M) do not cover its long term liabilities ($413.1M).


Debt to Equity History and Analysis

Debt Level: GNK's debt to equity ratio (56%) is considered high.

Reducing Debt: GNK's debt to equity ratio has increased from 35.4% to 56% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GNK has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GNK has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Genco Shipping & Trading's current dividend yield, its reliability and sustainability?

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GNK's dividend (1.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: GNK's dividend (1.6%) is low compared to the top 25% of dividend payers in the US market (4.54%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether GNK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if GNK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: GNK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: GNK's dividends in 3 years are forecast to be well covered by earnings (49.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

John Wobensmith (49yo)

3.17yrs

Tenure

US$2,383,484

Compensation

Mr. John C. Wobensmith has been the President of Genco Shipping & Trading Limited since December 19, 2014 and also serves as its Chief Executive Officer and Secretary. Mr. Wobensmith also served as the Chi ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.38M) is above average for companies of similar size in the US market ($USD1.40M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Arthur Regan
Interim Executive Chairman3.58yrsUS$672.29k0.029% $59.6k
John Wobensmith
CEO, President & Secretary3.17yrsUS$2.38m0.60% $1.2m
Apostolos Zafolias
CFO & Executive VP of Finance5.42yrsUS$718.73k0.020% $41.8k
Robert Hughes
Chief Operations Officer1.33yrsno datano data
Joseph Adamo
Chief Accounting Officer5.42yrsUS$398.95k0.0026% $5.4k
Ivo Kempenaer
Vice President2.58yrsno datano data
Peter Allen
Senior Vice President of Strategy & Financeno datano datano data

3.2yrs

Average Tenure

49yo

Average Age

Experienced Management: GNK's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arthur Regan
Interim Executive Chairman3.58yrsUS$672.29k0.029% $59.6k
Kathleen Haines
Independent Director3yrsUS$177.49kno data
James Dolphin
Independent Director5.83yrsUS$351.99kno data
Daniel Han
Independent Director2.08yrsno datano data
Basil Mavroleon
Independent Director4.83yrsUS$173.49k0.0018% $3.7k
Jason Scheir
Independent Director3.42yrsno datano data
Bao Truong
Director5.83yrsno datano data
Kevin Mahony
Director4.67yrsno datano data
Christoph Majeske
Independent Director3.33yrsno datano data

3.6yrs

Average Tenure

48.5yo

Average Age

Experienced Board: GNK's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Genco Shipping & Trading Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genco Shipping & Trading Limited
  • Ticker: GNK
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: US$208.591m
  • Shares outstanding: 41.80m
  • Website: https://www.gencoshipping.com

Number of Employees


Location

  • Genco Shipping & Trading Limited
  • 299 Park Avenue
  • 12th Floor
  • New York
  • New York
  • 10171
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNU1DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014
GNKNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2014

Biography

Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes worldwide. The company, through the ownership and operation of dry bulk carrier vessels, transports iron ore, coal, grains, steel products, and other dry-bulk cargoes. It charters its vessels primarily to trading houses, including commodities traders; producers; and government-owned entities. As of February 25, 2020, the company’s fleet consisted of 17 Capesize, 1 Panamax, 6 Ultramax, 20 Supramax, and 10 Handysize vessels with an aggregate capacity of approximately 4,914,000 deadweight tons. Genco Shipping & Trading Limited was founded in 2004 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 04:52
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.