Genco Shipping & Trading Ltd

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GNK : NYSE : Services
$6.17 -0.18 | -2.83%
Today's Range: 6.02 - 6.26
Avg. Daily Volume: 43,700
07/26/16 - 4:02 PM ET

Financial Analysis


GENCO SHIPPING & TRADING's gross profit margin for the first quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. GENCO SHIPPING & TRADING has very weak liquidity. Currently, the Quick Ratio is 0.18 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.78% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)20.9434.42
EBITDA ($mil)-26.05-19.35
EBIT ($mil)-45.28-38.37
Net Income ($mil)-54.48-38.44


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)95.178.53
Total Assets ($mil)1644.11694.82
Total Debt ($mil)561.1434.61
Equity ($mil)1057.831019.25


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin-62.982.83
EBITDA Margin-124.36-56.21
Operating Margin-216.19-111.47
Sales Turnover0.090.11
Return on Assets-12.83-66.83
Return on Equity-19.94-111.13
Debt Q1 FY16 Q1 FY15
Current Ratio0.211.53
Debt/Capital0.350.3
Interest Expense7.114.45
Interest Coverage-6.37-8.63


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)7.356.15
Div / share0.00.0
EPS-7.5-6.4
Book value / share143.83165.62
Institutional Own % n/a n/a
Avg Daily Volume320409.0279538.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 0.05 indicates a significant discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 1.31. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, GENCO SHIPPING & TRADING proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GNK NM Peers 13.30   GNK NM Peers 6.77

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

GNK's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

GNK's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GNK NM Peers 15.41   GNK NA Peers 0.07

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

GNK's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GNK 0.05 Peers 1.31   GNK 82.92 Peers -5.90

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

GNK is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

GNK is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GNK 0.37 Peers 1.41   GNK -26.57 Peers 3.55

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

GNK is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

GNK significantly trails its peers on the basis of sales growth

 

 

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