GNK Stock Intrinsic Value – Genco Shipping Reports Revenue Beat But Misses On Earnings
May 4, 2023
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Genco Shipping & Trading ($NYSE:GNK) Ltd. is a major international dry bulk shipping company that provides transportation services for a variety of commodities. Genco Shipping reported a revenue of $94.39M, exceeding expectations by $38.42M.
However, the company’s GAAP EPS of $0.06 was lower than expected by $0.07. This was mainly due to higher average daily time charter equivalent rates resulting from a tighter supply/demand balance in the dry bulk market. Although its revenue beat expectations, its earnings missed estimates by a significant margin. Going forward, the company will continue to focus on maximizing profitability and delivering value to its shareholders.
Earnings
GENCO SHIPPING & TRADING reported their FY2022 Q4 earnings report as of December 31 2022. The report revealed that the company earned 126.97M USD in total revenue, and 28.68M USD in net income. This is a decrease of 30.7% in total revenue and 68.4% in net income compared to the previous year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GNK. More…
| Total Revenues | Net Income | Net Margin |
| 536.93 | 158.58 | 29.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GNK. More…
| Operations | Investing | Financing |
| 189.32 | -55.02 | -190.74 |
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 |
| 1.17k | 205.56 | 22.86 |
Key Ratios Snapshot
Some of the financial key ratios for GNK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.3% | 54.1% | 31.4% |
| FCF Margin | ROE | ROA |
| 24.8% | 10.9% | 9.0% |
Share Price
On Wednesday, GENCO SHIPPING & TRADING reported their financial results for the quarter, which indicated a revenue beat but missed on earnings. The stock opened at $14.4 and closed the day at $14.2, representing a decrease of 0.6% from the previous closing price of 14.3. Despite beating revenue expectations, the company failed to meet its earnings estimates, creating a mixed bag of results for investors. Looking ahead, investors will be closely monitoring the company’s performance to gauge potential growth in the future. Live Quote…
Analysis – GNK Stock Intrinsic Value
We at GoodWhale have conducted an analysis of GENCO SHIPPING & TRADING’s wellbeing and our proprietary Valuation Line indicates that the intrinsic value of their share is around $15.6. We have observed that the stock is currently trading at $14.2, which is a fair price, but is undervalued by 8.8% when compared to its intrinsic value. We believe that this discrepancy can be attributed to the current market conditions and it is in the best interests of investors to capitalize on this opportunity. More…
Peers
In the shipping industry, there is intense competition among companies to secure business and achieve profitability. Genco Shipping & Trading Ltd is one company that competes against others, such as Golden Ocean Group Ltd, Diana Shipping Inc, and Seanergy Maritime Holdings Corp. All of these companies are striving to be the best in the industry, and each has its own strengths and weaknesses. The competition between them is fierce, and it is important for each company to carefully consider its strategies in order to be successful.
– Golden Ocean Group Ltd ($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
The company reported GAAP earnings per share of $0.06, missing analysts’ estimates by $0.07. Revenue was reported at $94.39 million, beating estimates by $38.42 million. Despite the earnings miss, the company reported strong revenue growth, driven by higher charter and freight rates. Going forward, the company expects to benefit from favorable market conditions and strong demand for shipping services.
Genco is also planning to leverage its extensive network of vessels and ports to continue expanding operations and increase profitability. Investors should continue to monitor the company’s financial performance to assess its long-term investment prospects.
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