GNK Intrinsic Value Calculation – GENCO SHIPPING & TRADING Reports Earnings Results for FY2023 Q3
November 20, 2023
🌥️Earnings Overview
On November 8, 2023, GENCO SHIPPING & TRADING ($NYSE:GNK) reported their earnings results for the third quarter of the fiscal year 2023, as of September 30, 2023. They experienced a total revenue of USD 83.4 million, representing a 38.7% decrease compared to the year prior. Their net income was also significantly lower, dropping to USD -32.0 million from the 40.8 million that had previously been reported.
Market Price
The company’s stock opened at $13.0 and closed at $12.8, representing a 2.0% decrease from its last closing price of 13.1. The report indicated that GENCO SHIPPING & TRADING had seen a slight dip in revenues and profits due to the current economic conditions and slowing growth. GENCO SHIPPING & TRADING’s overall business performance for the third quarter of 2023 was mixed, with some areas of the business performing better than expected while others experienced challenging market conditions.
Overall, it was a challenging quarter for GENCO SHIPPING & TRADING as the company continues to face headwinds in the form of weak global demand and geopolitical uncertainty. Despite this, the company remains optimistic about its future prospects and remains committed to providing its clients with high quality services at competitive prices. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GNK. More…
| Total Revenues | Net Income | Net Margin |
| 395.28 | 10.87 | 8.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GNK. More…
| Operations | Investing | Financing |
| 88.04 | -4.79 | -102.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GNK. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.09k | 178.61 | 21.51 |
Key Ratios Snapshot
Some of the financial key ratios for GNK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.3% | 147.8% | 5.0% |
| FCF Margin | ROE | ROA |
| 20.3% | 1.3% | 1.1% |
Analysis – GNK Intrinsic Value Calculation
GoodWhale conducted an analysis of GENCO SHIPPING & TRADING’s financials and determined an intrinsic value of around $11.5 per share based on our proprietary Valuation Line. Our analysis shows that the current stock price of $12.8 is a fair price, but it is slightly overvalued by 11.6%. This means that investors should exercise caution when considering investing in the company. More…
Peers
In the shipping industry, there is intense competition among companies to secure business and achieve profitability. Genco Shipping & Trading Ltd is one company that competes against others, such as Golden Ocean Group Ltd, Diana Shipping Inc, and Seanergy Maritime Holdings Corp. All of these companies are striving to be the best in the industry, and each has its own strengths and weaknesses. The competition between them is fierce, and it is important for each company to carefully consider its strategies in order to be successful.
– Golden Ocean Group Ltd ($NASDAQ:GOGL)
Golden Ocean Group Ltd. engages in the ownership and operation of dry-bulk vessels. It operates through the following segments: Bulk Carriers and Tankers. The Bulk Carriers segment offers transportation services for iron ore, coal, grain, steel products, and other dry bulk cargoes. The Tankers segment engages in the transportation of crude oil and refined petroleum products. The company was founded on November 15, 1993 and is headquartered in Hamilton, Bermuda.
– Diana Shipping Inc ($NYSE:DSX)
Diana Shipping is a global provider of shipping transportation services through the ownership and operation of dry bulk vessels. The Company’s vessels are employed primarily on time charters with leading charterers. The Company’s operating fleet consists of 72 dry bulk carrier vessels, with a weighted average age of 12.5 years and an average cargo-carrying capacity of 528,000 DWT. The Company’s vessels are employed primarily on time charters with leading charterers including Cargill International S.A., Bunge S.A., Glencore Agriculture B.V., Louis Dreyfus Company, Phibro LLC and Vitol S.A.
– Seanergy Maritime Holdings Corp ($NASDAQ:SHIP)
Steergy Maritime Holdings Corp is a holding company that owns and operates a fleet of Capesize vessels. The company has a market cap of $87.37 million and a return on equity of 16.65%. The company’s fleet of vessels transport iron ore and coal around the world.
Summary
GENCO SHIPPING & TRADING reported their earnings results for the third quarter of FY2023 on November 8th, 2023. Total revenue for the quarter was USD 83.4 million, which represents a 38.7% decrease year-over-year. Net income was reported at USD -32.0 million, a decrease from 40.8 million the previous year.
Investors should consider that GENCO SHIPPING & TRADING’s revenue and net income have decreased significantly in the last quarter, so it may be a sign of continued downward performance for the company. Further analysis is needed to make an informed investing decision.
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