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Genco Shipping (GNK)
NYSE:GNK
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Genco Shipping (GNK) AI Stock Analysis

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Genco Shipping

(NYSE:GNK)

Rating:69Neutral
Price Target:
$16.50
â–²(10.00%Upside)
Genco Shipping's strong financial management and operational resilience are the most significant factors in its score. The company's focus on shareholder returns and debt reduction, coupled with positive technical indicators, support its potential for growth. However, volatility in earnings and market conditions pose challenges.

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

Genco Shipping Business Overview & Revenue Model

Company DescriptionGenco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes worldwide. The company owns and operates dry bulk carrier vessels to transports iron ore, coal, grains, steel products, and other dry-bulk cargoes. It charters its vessels primarily to trading houses, including commodities traders; producers; and government-owned entities. As of December 31, 2021, the company fleet consisted of 44 dry bulk carriers, including 17 Capesize, 15 Ultramax, and 12 Supramax with an aggregate capacity of approximately 4,636,000 deadweight tons. Genco Shipping & Trading Limited was incorporated in 2004 and is headquartered in New York, New York.
How the Company Makes MoneyGenco Shipping makes money primarily through the chartering of its drybulk vessels. The company earns revenue by leasing its ships to customers under time charters and voyage charters. In a time charter arrangement, Genco receives a fixed daily rate for providing the vessel to a charterer for a specified period, which provides predictable cash flow. In contrast, voyage charters involve the transportation of specific cargo from one port to another, with revenue derived from negotiated rates based on the cargo and distance traveled. Genco's revenue is heavily influenced by global demand for drybulk commodities, prevailing shipping rates, and the efficient management of its fleet. The company may also engage in strategic partnerships and alliances to optimize its operations and expand its market reach, contributing to its earnings.

Genco Shipping Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 12.70%|
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 Financial Statement Overview

Summary
Genco Shipping demonstrates resilience with strong profitability metrics and a solid balance sheet. While revenue and cash flow have shown volatility, the company maintains low leverage and efficient operations. Continued focus on stabilizing growth and enhancing cash flow will benefit long-term sustainability.
Income Statement
65
Positive
Genco Shipping shows solid profitability with a gross profit margin of 21.8% and a net profit margin of 12.1% in the TTM. However, revenue growth has been inconsistent, with a decline from 2022 to 2023, but a recovery is visible in the TTM. EBIT and EBITDA margins are healthy, indicating efficient operations despite past fluctuations.
Balance Sheet
70
Positive
The company maintains a strong equity position with an equity ratio of 87.0% in the TTM, indicating financial stability. The debt-to-equity ratio remains low at 0.1, which reduces financial risk. Return on equity is 5.1%, signaling moderate profitability from shareholder's equity.
Cash Flow
60
Neutral
Operating cash flow to net income ratio is strong at 2.1 in the TTM, suggesting efficient cash generation relative to earnings. However, free cash flow growth has been volatile, with a decline in the TTM compared to the previous year. The free cash flow to net income ratio of 0.8 shows a fair conversion of profits into cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue423.02M383.82M536.93M547.13M355.56M
Gross Profit116.68M68.16M196.26M226.26M35.68M
EBITDA159.87M60.62M230.06M255.02M-136.63M
Net Income76.40M-12.87M158.58M182.01M-247.13M
Balance Sheet
Total Assets1.06B1.14B1.17B1.20B1.23B
Cash, Cash Equivalents and Short-Term Investments43.69M46.54M58.14M114.57M143.87M
Total Debt89.22M194.26M171.12M246.29M449.40M
Total Liabilities128.37M227.26M205.56M286.33M487.81M
Stockholders Equity926.74M913.26M967.43M916.59M744.99M
Cash Flow
Free Cash Flow70.17M-2.23M133.28M113.66M16.86M
Operating Cash Flow126.85M91.78M189.32M231.12M36.90M
Investing Cash Flow47.85M-91.62M-55.02M-67.57M37.44M
Financing Cash Flow-177.55M-17.40M-190.74M-222.69M-56.91M

Genco Shipping Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.00
Price Trends
50DMA
13.70
Positive
100DMA
13.40
Positive
200DMA
14.22
Positive
Market Momentum
MACD
0.38
Negative
RSI
65.70
Neutral
STOCH
73.90
Neutral
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 15 is above the 20-day moving average (MA) of 13.88, above the 50-day MA of 13.70, and above the 200-day MA of 14.22, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 73.90 is Neutral, 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 3 New Risks
1.
We are at risk for the creditworthiness of our charterers. Q4, 2024
2.
As a holding company, we depend on the ability of our subsidiaries to distribute funds to us in order to satisfy our financial obligations or to make dividend payments. Q4, 2024
3.
Future dividends are subject to the discretion of our Board of Directors; dividends and share repurchases are subject to covenant compliance under our credit facility. Q4, 2024

Genco Shipping Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SBSB
75
Outperform
$414.36M6.179.82%4.94%-2.98%-0.96%
74
Outperform
$2.10B9.0611.09%1.10%25.60%-9.32%
NANAT
71
Outperform
$569.61M15.946.96%10.41%-3.87%-46.50%
GNGNK
69
Neutral
$629.79M14.385.02%4.09%-7.38%1295.53%
SFSFL
69
Neutral
$1.29B21.505.09%12.09%6.68%-57.55%
63
Neutral
$1.62B14.696.06%2.46%-7.73%-39.13%
58
Neutral
HK$14.11B4.63-3.01%6.76%3.67%-54.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GNK
Genco Shipping
15.00
-3.77
-20.09%
NAT
Nordic American Tanker
2.73
-0.66
-19.47%
SB
Safe Bulkers
4.13
-1.07
-20.58%
SFL
SFL Corporation
9.26
-2.59
-21.86%
SBLK
Star Bulk Carriers
18.77
-3.25
-14.76%
GOGL
Golden Ocean Group
8.35
-3.57
-29.95%

Genco Shipping Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Genco Shipping Expands Credit Facility by $100 Million
Positive
Jul 14, 2025

On July 10, 2025, Genco Shipping & Trading Limited announced a significant amendment to its credit agreement, increasing its revolving credit facility from $500 million to $600 million. This amendment, involving several financial institutions, extends the maturity date to July 2030 and introduces terms that support the company’s growth and operational flexibility, including performance-based interest rate adjustments related to emissions targets.

The most recent analyst rating on (GNK) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Genco Shipping stock, see the GNK Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Genco Shipping Updates Q2 2025 TCE Rate Estimate
Neutral
Jun 13, 2025

On June 13, 2025, Genco Shipping updated its estimated TCE rate for Q2 2025 to approximately $13,800 per day for 95% of its available days, reflecting both period and spot fixtures. This estimation, based on current bookings, may impact the company’s financial performance and market positioning, but actual results could vary due to factors like voyage duration and market conditions.

The most recent analyst rating on (GNK) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Genco Shipping stock, see the GNK Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Genco Shipping Holds Annual Shareholders Meeting
Neutral
May 20, 2025

On May 20, 2025, Genco Shipping & Trading Limited held its Annual Meeting of Shareholders, where 66.44% of the eligible shares were represented. During the meeting, shareholders elected seven directors, approved an advisory resolution on executive compensation, and ratified Deloitte & Touche LLP as the independent certified public accountants for the fiscal year ending December 31, 2025.

The most recent analyst rating on (GNK) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Genco Shipping stock, see the GNK Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 15, 2025