Genco Shipping (GNK) AI Stock Analysis

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Genco Shipping

(NYSE:GNK)

72Outperform

Genco Shipping is in a strong financial position, with solid profitability and balance sheet metrics. While technical analysis shows positive stock momentum, caution is advised due to potential overbought conditions. The attractive valuation and high dividend yield enhance its appeal, despite reported net losses and market volatility challenges. Overall, the stock is positioned well for investors seeking income and growth potential.

Genco Shipping (GNK) vs. S&P 500 (SPY)

Market Cap

$609.59M

Dividend Yield10.03%

Average Volume (3M)763.67K

Price to Earnings (P/E)13.6

Beta (1Y)1.10

Revenue Growth-7.38%

EPS Growth1295.53%

CountryUS

Employees1,037

SectorIndustrials

Sector Strength89

IndustryMarine Shipping

Share Statistics

EPS (TTM)-0.28

Shares Outstanding42,959,465

10 Day Avg. Volume742,729

30 Day Avg. Volume763,668

Financial Highlights & Ratios

PEG Ratio0.72

Price to Book (P/B)<0.01

Price to Sales (P/S)0.00

P/FCF Ratio8.29

Enterprise Value/Market Cap1.03

Enterprise Value/Revenue0.37

Enterprise Value/Gross Profit5.38

Enterprise Value/Ebitda1.29

Forecast

1Y Price Target

$17.53

Price Target Upside21.82% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Genco Shipping Business Overview & Revenue Model

Company DescriptionGenco Shipping & Trading Limited (GNK) is a prominent player in the maritime transportation industry, primarily focused on dry bulk shipping. The company operates a modern and diverse fleet of vessels that transport major bulk commodities such as iron ore, coal, grain, steel products, and other dry bulk cargoes across the globe. Genco Shipping is headquartered in New York, USA, and is committed to providing reliable and efficient shipping services to its clients by leveraging its operational expertise and extensive market knowledge.

How the Company Makes MoneyGenco Shipping makes money through the chartering of its dry bulk vessels to customers under spot market voyages or time charters. Revenue is mainly generated from the hire rates paid by clients for the transportation of dry bulk commodities. The company's earnings are significantly influenced by the prevailing conditions in the dry bulk shipping market, which are driven by global demand and supply dynamics for commodities. Genco's revenue streams also depend on the efficient management of its fleet and strategic positioning of its vessels to capitalize on lucrative shipping routes. While the company may engage in partnerships with various chartering clients and maritime service providers, the core factor contributing to its earnings remains the freight rates in the dry bulk shipping market.

Genco Shipping Financial Statement Overview

Summary

Genco Shipping shows a solid financial position with strong equity and cash flow management. The company benefits from a low debt-to-equity ratio and significant operating cash flow. However, historical volatility in earnings and inconsistent free cash flow growth present areas for improvement.

Income Statement

Positive

Genco Shipping has shown a strong gross profit margin of approximately 67.88% for 2024, indicating efficient cost management. However, the net profit margin is lower at 18.06%, showing potential challenges in controlling other expenses. Revenue has seen considerable growth from 2023 to 2024, but the previous year was marked by a net loss, indicating some volatility in earnings.

Balance Sheet

Positive

The company maintains a healthy equity position with a debt-to-equity ratio of 0.01, reflecting low leverage and reduced financial risk. The return on equity is strong at 8.24% for 2024, indicating effective use of equity capital. The equity ratio of approximately 87.72% reinforces the company's solid financial stability.

Cash Flow

Positive

Genco Shipping's cash flow analysis reveals a robust operating cash flow that significantly exceeds net income, with an operating cash flow to net income ratio of approximately 1.66. However, free cash flow growth has been inconsistent over the years, affecting the predictability of future cash generation.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
423.02M	383.82M	536.93M	547.13M	355.56M
	Gross Profit
116.68M	68.16M	196.26M	226.26M	35.68M
	EBIT
87.05M	-5.85M	167.24M	201.12M	7.63M
	EBITDA
159.87M	60.62M	230.06M	255.02M	-136.63M
	Net Income Common Stockholders
76.40M	-12.87M	158.58M	182.01M	-247.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.69M	46.54M	58.14M	114.57M	143.87M
	Total Assets
1.06B	1.14B	1.17B	1.20B	1.23B
	Total Debt
89.22M	194.26M	171.12M	246.29M	449.40M
	Net Debt
45.53M	147.72M	112.98M	131.72M	305.53M
	Total Liabilities
128.37M	227.26M	205.56M	286.33M	487.81M
	Stockholders Equity
926.74M	913.26M	967.43M	916.59M	744.99M
Cash Flow		Free Cash Flow
70.17M	-2.23M	133.28M	113.66M	16.86M
	Operating Cash Flow
126.85M	91.78M	189.32M	231.12M	36.90M
	Investing Cash Flow
47.85M	-91.62M	-55.02M	-67.57M	37.44M
	Financing Cash Flow
-177.55M	-17.40M	-190.74M	-222.69M	-56.91M

Genco Shipping Technical Analysis

Technical Analysis Sentiment

Positive

Last Price14.39

Price Trends

50DMA

13.22

Positive

100DMA

13.61

Positive

200DMA

15.05

Negative

Market Momentum

MACD

0.20

Negative

RSI

64.87

Neutral

STOCH

80.71

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNK, the sentiment is Positive. The current price of 14.39 is above the 20-day moving average (MA) of 13.04, above the 50-day MA of 13.22, and below the 200-day MA of 15.05, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 64.87 is Neutral, neither overbought nor oversold. The STOCH value of 80.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GNK.

Genco Shipping Risk Analysis

Genco Shipping disclosed 48 risk factors in its most recent earnings report. Genco Shipping reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Genco Shipping Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBLK	78 Outperform	$1.92B	5.86	14.71%	13.02%	33.31%	62.94%
GNK	72 Outperform	$609.59M	13.60	5.02%	10.03%	-7.38%	1295.53%
SFL	71 Outperform	$1.27B	8.68	5.09%	12.38%	20.22%	52.03%
GOGL	70 Neutral	$1.59B	7.12	11.68%	13.21%	9.33%	98.70%
SB	68 Neutral	$380.02M	4.35	11.99%	5.54%	8.17%	35.92%
Sector *	64 Neutral	$4.40B	12.09	5.26%	250.03%	4.08%	-11.05%
NAT	64 Neutral	$559.02M	11.88	8.91%	12.88%	-2.37%	-52.77%

* Industrials Sector Average

Performance Comparison

GNK

Genco Shipping

14.39

-6.82

-32.15%

NAT

Nordic American Tanker

2.67

-1.16

-30.29%

Safe Bulkers

3.67

-1.71

-31.78%

SFL

SFL Corporation

8.67

-4.14

-32.32%

SBLK

Star Bulk Carriers

16.41

-6.91

-29.63%

GOGL

Golden Ocean Group

8.07

-5.61

-41.01%

Genco Shipping Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 6.91%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong financial management, commitment to shareholder returns through dividends and share repurchases, and optimistic market outlooks. However, it also acknowledged the challenges of a net loss and market volatility due to seasonal and geopolitical factors.

Q1-2025 Updates

Positive Updates

Commitment to Shareholders

Genco Shipping declared a $0.15 per share dividend for Q1 2025, marking 23 consecutive quarters of dividends, and announced a $50 million share repurchase program.

Strong Financial Position

The company maintains a low net loan-to-value ratio of 6%, low cash flow breakeven rate, and over $320 million in undrawn revolver availability.

Freight Rate Improvements

Capesize rates rose from under $6,000 a day to nearly $24,000 a day in March, showcasing the significant operating leverage.

Debt Reduction

Since the inception of the value strategy, Genco has paid down nearly $360 million in debt, resulting in a net loan-to-value of 6%.

Positive Market Outlook

Long-haul iron ore and bauxite trade growth expected to absorb over 200 Capesize vessels by 2026 and 2027, with a low Capesize newbuilding order book.

Negative Updates

Net Loss Reported

Genco recorded a net loss of $11.9 million or $0.28 basic and diluted net loss per share for Q1 2025.

Seasonal and Geopolitical Challenges

The dry bulk freight rate environment was impacted by seasonal factors, including weather-related disruptions and geopolitical uncertainties.

Volatility in Minor Bulks

Uncertainty around U.S. tariffs and trade policies affected the minor bulk market, slowing down business for several weeks.

Company Guidance

In the first quarter of 2025, Genco Shipping & Trading Limited declared a $0.15 per share dividend, marking 23 consecutive quarters of dividends, which accounts for 50% of their current share price. Despite a voluntary reserve of $19.5 million that would have precluded a dividend, the company reduced the reserve to $1.1 million to maintain the dividend. Genco also introduced a $50 million share repurchase program to address market volatility, emphasizing that it is incremental to their dividend policy. The company highlighted an industry-low net loan-to-value ratio of 6%, a low cash flow breakeven rate, and $320 million in undrawn revolver availability. Genco reported a net loss of $11.9 million for Q1, with an EBITDA of $7.9 million, and has reduced its debt by 80% since the inception of its value strategy. Looking ahead, Genco remains focused on dividends, deleveraging, and growth opportunities while maintaining financial flexibility to capitalize on market developments.

Genco Shipping Corporate Events

Business Operations and StrategyFinancial Disclosures

Genco Shipping Updates Q1 2025 TCE Rate Estimate

Positive

Mar 14, 2025

Genco Shipping provided an update on its estimated time charter equivalent (TCE) rate for the first quarter of 2025, estimating it to be approximately $11,700 per day for about 95% of its owned available days. The company noted that freight rates, particularly for Capesize vessels, have increased significantly in March 2025, benefiting their operations as most of their fleet trades in the spot market. Some revenue from first-quarter fixtures will be recognized in the second quarter due to accounting practices, and daily vessel operating expenses are estimated at $6,500 per vessel per day.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.