Genco Shipping & Trading Ltd (NYSE: GNK)

Sector: Industrials Industry: Marine Shipping CIK: 0001326200
Market Cap 945.06 Mn
P/B 1.27
P/E -4.19
P/S 2.66
ROIC (Qtr) 0.30
Div Yield % 1.73
Rev 1y % (Qtr) -19.54
Total Debt (Qtr) 163.94 Mn
Debt/Equity (Qtr) 0.19
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About

Investment thesis

Bull case

  • Strong tangible asset base of 1.11B provides 6.76x coverage of total debt 163.94M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.11B provide exceptional 235.61x coverage of deferred revenue 4.70M, showing strong service capability backing.
  • Operating cash flow of 45.99M provides strong 9.78x coverage of deferred revenue 4.70M, indicating service delivery capability.
  • Robust tangible asset base of 1.11B provides 14.40x coverage of working capital 76.91M, indicating strong operational backing.
  • Operating cash flow of 45.99M provides solid 0.82x coverage of current liabilities 56.36M, showing strong operational health.

Bear case

  • Operating cash flow of 45.99M barely covers its investment activities of (43.62M), with a coverage ratio of -1.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 45.99M provides thin coverage of dividend payments of (43.42M) with a -1.06 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 1.20M provides weak coverage of capital expenditures of 44.79M, with a 0.03 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 3.99M show weak coverage of depreciation charges of 74.16M, with a 0.05 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 74.16M relative to operating cash flow of 45.99M, which is 1.61x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Marine Shipping
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KEX Kirby Corp 7.05 Bn 19.89 2.10 1.13 Bn
2 MATX Matson, Inc. 6.79 Bn 74.01 4.43 0.72 Bn
3 ZIM ZIM Integrated Shipping Services Ltd. 3.36 Bn 3.35 0.44 5.66 Bn
4 HAFN Hafnia Ltd 3.35 Bn 10.82 1.51 0.89 Bn
5 BWLP BW LPG Ltd 2.38 Bn 10.97 0.67 1.09 Bn
6 SBLK Star Bulk Carriers Corp. 2.37 Bn 245.30 3.42 1.23 Bn
7 CMRE Costamare Inc. 2.05 Bn 6.81 1.69 1.58 Bn
8 DAC Danaos Corp 1.99 Bn 4.27 1.93 0.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.14 0.60
EV to Cash from Ops. EV/CFO 34.14 6.07
EV to Debt EV to Debt 7.68 60.45
EV to EBIT EV/EBIT -6.20 4.74
EV to EBITDA EV/EBITDA -9.21 5.76
EV to Free Cash Flow [EV/FCF] EV/FCF 17.06 5.00
EV to Market Cap EV to Market Cap 1.33 29.59
EV to Revenue EV/Rev 3.54 2.00
Price to Book Value [P/B] P/B 1.27 1.07
Price to Earnings [P/E] P/E -4.19 13.80
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.16 2.47
Dividend Payout Ratio % Div Payout % (Qtr) -588.20 68.67
Dividend per Basic Share Div per Share (Qtr) 1.00 1.18
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 3,571.43 105.16
Interest Coverage Int. cover (Qtr) 0.36 -7.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -189.18 -33.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 92.76 25.96
Dividend Growth (1y) % Div 1y % (Qtr) -24.24 9.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -95.12 -27.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -48.05 -36.36
EBIT Growth (1y) % EBIT 1y % (Qtr) -95.12 -26.39
EBT Growth (1y) % EBT 1y % (Qtr) -110.34 -36.07
EPS Growth (1y) % EPS 1y % (Qtr) -110.62 -30.68
FCF Growth (1y) % FCF 1y % (Qtr) -99.01 14.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -40.18 -7.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.30 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.48 0.08
Cash Ratio Cash Ratio (Qtr) 1.60 1.33
Current Ratio Curr Ratio (Qtr) 2.37 2.15
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 0.73
Interest Cover Ratio Int Coverage (Qtr) 0.36 -7.10
Times Interest Earned Times Interest Earned (Qtr) 0.36 -7.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 23.60 27.36
EBIT Margin % EBIT Margin % (Qtr) 1.21 17.95
EBT Margin % EBT Margin % (Qtr) -2.14 10.77
Gross Margin % Gross Margin % (Qtr) 34.00 37.00
Net Profit Margin % Net Margin % (Qtr) -2.10 9.28