Genco Shipping & Trading Ltd

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GNK : NYSE : Services
$4.82 -0.08 | -1.60%
Today's Range: 4.73 - 5.00
Avg. Daily Volume: 57,300
09/26/16 - 2:35 PM ET

Financial Analysis


GENCO SHIPPING & TRADING's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. GENCO SHIPPING & TRADING has very weak liquidity. Currently, the Quick Ratio is 0.15 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.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.64% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)31.8734.59
EBITDA ($mil)-14.64-19.69
EBIT ($mil)-33.28-38.48
Net Income ($mil)-110.66-40.33


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)76.1671.4
Total Assets ($mil)1530.391669.6
Total Debt ($mil)553.3448.62
Equity ($mil)951.75987.78


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin-2.470.88
EBITDA Margin-45.93-56.91
Operating Margin-104.41-111.25
Sales Turnover0.090.1
Return on Assets-18.37-66.63
Return on Equity-29.55-112.63
Debt Q2 FY16 Q2 FY15
Current Ratio0.181.37
Debt/Capital0.370.31
Interest Expense7.014.83
Interest Coverage-4.74-7.97


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)7.356.16
Div / share0.00.0
EPS-15.3-6.7
Book value / share129.41160.32
Institutional Own % n/a n/a
Avg Daily Volume85020.0441894.0

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 0.04 indicates a significant discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 1.35. 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 15.66   GNK NM Peers 5.47

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 16.96   GNK NA Peers 0.05

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 0.04 Peers 1.35   GNK 78.75 Peers -27.86

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 0.26 Peers 1.46   GNK -20.61 Peers 0.70

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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