Golden Ocean Intrinsic Value – GOLDEN OCEAN Reports 32.6% Decrease in Revenue for Q2 2023
September 6, 2023
🌥️Earnings Overview
For the quarter ending June 30, 2023, GOLDEN OCEAN ($NASDAQ:GOGL) reported total revenue of USD 213.4 million, a decrease of 32.6% year over year. Net income for the same period was USD 34.9 million, a decline of 78.7% from the previous year.
Analysis – Golden Ocean Intrinsic Value
GoodWhale conducted an analysis of GOLDEN OCEAN‘s financials and found that the intrinsic value of the company’s share is around $4.6. This was determined using our proprietary Valuation Line method. Currently, GOLDEN OCEAN stock is trading at $7.3, representing an overvaluation of 57.1%. This suggests that there may be a good opportunity to buy GOLDEN OCEAN shares at their current price. However, investors should also be aware of the potential risks associated with an investment in any company, and should conduct further research before making any decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Golden Ocean. More…
| Total Revenues | Net Income | Net Margin |
| 941.51 | 198.84 | 17.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Golden Ocean. More…
| Operations | Investing | Financing |
| 346.36 | -276.93 | -130.42 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Golden Ocean. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.46k | 1.59k | 9.4 |
Key Ratios Snapshot
Some of the financial key ratios for Golden Ocean are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.5% | 56.8% | 29.1% |
| FCF Margin | ROE | ROA |
| -7.1% | 9.1% | 4.9% |
Peers
The Company operates in the Handysize, Supramax and Panamax segments and employs a mix of spot market and time charter contracts. Golden Ocean Group Ltd’s main competitors are Great Harvest Maeta Holdings Ltd, Performance Shipping Inc, and Diana Shipping Inc.
– Great Harvest Maeta Holdings Ltd ($SEHK:03683)
Great Harvest Maeta Holdings Ltd is a Hong-Kong based company that operates in the food and beverage industry. The company’s market capitalization as of 2022 was 191.48 million, and its return on equity was 40.22%. Great Harvest Maeta Holdings Ltd was founded in 2006 and is headquartered in Hong Kong. The company’s primary businesses include the manufacture and sale of food and beverage products, as well as the operation of restaurants.
– Performance Shipping Inc ($NASDAQ:PSHG)
The company’s market capitalization is $13.77 million as of 2022. The company’s ROE is -0.44%. The company is engaged in the business of providing maritime transportation services. The company transports crude oil, refined petroleum products, natural gas, chemicals and other bulk commodities.
– Diana Shipping Inc ($NYSE:DSX)
Diana Shipping Inc. is a global provider of shipping transportation services. Through its subsidiaries, the Company owns and operates a fleet of vessels that transport dry bulk cargoes, including iron ore, coal, grain, steel products and other dry bulk cargoes along shipping routes worldwide. The Company’s vessels are employed on a time charter, contract of affreightment (COA) and spot market basis. The Company’s operating fleet consisted of 61 dry bulk vessels with an average age of approximately 8.6 years, as of December 31, 2020. The Company’s subsidiaries include Diana Shipping S.A., Diana Shipping Services S.A., Diana Shipping Investments LLC and Diana Containerships Inc.
Summary
Investors in Golden Ocean appear to be cautiously optimistic despite recent numbers showing significant drops in revenue and net income for the quarter ending June 30, 2023. The company reported total revenue of USD 213.4 million, a decrease of 32.6% compared to the same period last year, and net income of USD 34.9 million, a decrease of 78.7%. Despite these decreases, the stock price moved up the same day, indicating that investors are viewing the situation positively. It remains to be seen whether this trend will continue.
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