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Golden Ocean Group Limited (GOGL)
NASDAQ:GOGL
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Golden Ocean Group
(NASDAQ:GOGL)
73Outperform
Golden Ocean Group (GOGL) vs. S&P 500 (SPY)
Market Cap
$1.56B
Dividend Yield15.42%
Average Volume (3M)4.05M
Price to Earnings (P/E)7.4
Beta (1Y)0.86
Revenue Growth14.81%
EPS Growth96.97%
CountryUS
Employees38
SectorIndustrials
Sector Strength69
IndustryTransportation
Share Statistics
EPS (TTM)1.12
Shares Outstanding200,028,290
10 Day Avg. Volume8,532,377
30 Day Avg. Volume4,049,373
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)N/A
Price to Sales (P/S)6.46
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.53Price Target Upside91.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Golden Ocean Group Business Overview & Revenue Model
Company DescriptionGolden Ocean Group Ltd. engages in the ownership and operation of dry bulk vessels. The company manages Newcastlemax, Capesize, Panamax, and Ultramax vessels and transports bulk commodities, including ores, coal, grains, and fertilizers. It also involves in the charter, purchase, and sale of vessels. The company was founded on September 18, 1996 and is headquartered in Hamilton, Bermuda.
How the Company Makes MoneyGolden Ocean Group makes money through the operation and chartering of its dry bulk vessels. The company's primary revenue stream comes from the transportation of bulk commodities, which is facilitated by time charters, voyage charters, and spot market contracts. Time charters involve leasing vessels to customers for a specific period, providing a stable income stream, while voyage charters are based on transporting cargo from one port to another. The spot market allows the company to capitalize on fluctuating freight rates, potentially increasing earnings during periods of high demand. Additionally, Golden Ocean Group may engage in strategic partnerships and alliances to enhance its market position and expand service offerings, contributing to its overall revenue generation.
Golden Ocean Group Financial Statement Overview
Summary
Golden Ocean Group's financial performance is commendable with strong revenue and cash flow growth. The company shows effective cost management and operational efficiency, reflected in its strong margins. However, the high debt-to-equity ratio poses a risk, and there is room for improvement in net profitability.Income Statement
Golden Ocean Group shows strong gross and EBIT margins in the TTM, indicating effective cost management and operational efficiency. The revenue growth rate from 2023 to 2024 TTM is 14.2%, suggesting a positive growth trajectory. However, net profit margin shows moderate improvement, indicating room for profitability enhancement.78
Positive
Balance Sheet
The company's debt-to-equity ratio is high, reflecting significant leverage which could pose risks in volatile markets. However, the ROE is solid at 12.5% for TTM, showcasing effective use of equity to generate profits. The equity ratio remains stable, suggesting a balanced asset structure.72
Positive
Cash Flow
The cash flow statement highlights a strong recovery in free cash flow with a substantial growth rate from 2023 to 2024 TTM. The operating cash flow to net income ratio is robust, indicating high-quality earnings. This provides the company with good liquidity to meet financial obligations and invest in growth.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.01B | 885.77M | 1.11B | 1.20B | 607.94M | 705.80M | Gross Profit |
| 367.90M | 209.88M | 421.69M | 528.16M | 44.05M | 115.95M | EBIT |
| 349.38M | 188.61M | 435.09M | 513.61M | 19.77M | 100.66M | EBITDA |
| 482.69M | 352.02M | 530.74M | 691.22M | 21.24M | 190.82M | Net Income Common Stockholders |
| 241.68M | 112.27M | 461.85M | 527.22M | -137.67M | 37.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 305.35M | 116.38M | 134.78M | 197.03M | 153.09M | 88.93M | Total Assets |
| 2.95B | 3.49B | 3.26B | 3.45B | 2.72B | 2.97B | Total Debt |
| 1.36B | 1.47B | 1.25B | 1.42B | 1.24B | 1.34B | Net Debt |
| 1.05B | 1.35B | 1.11B | 1.22B | 1.09B | 1.25B | Total Liabilities |
| 1.43B | 1.57B | 1.34B | 1.53B | 1.35B | 1.45B | Stockholders Equity |
| 1.52B | 1.92B | 1.92B | 1.93B | 1.37B | 1.51B |
| Cash Flow | Free Cash Flow | ||||
| 305.38M | -211.21M | 442.36M | 115.40M | 115.37M | 114.31M | Operating Cash Flow |
| 390.46M | 266.34M | 503.39M | 560.40M | 140.64M | 158.43M | Investing Cash Flow |
| -27.42M | -381.77M | 72.82M | -390.02M | -19.15M | -73.05M | Financing Cash Flow |
| -345.14M | 96.00M | -648.15M | -135.46M | -109.63M | -294.74M |
Golden Ocean Group Technical Analysis
Negative
8.10
Price Trends
8.98
Negative
9.52
Negative
10.69
Negative
Market Momentum
-0.25
Positive
38.64
Neutral
6.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOGL, the sentiment is Negative. The current price of 8.1 is below the 20-day moving average (MA) of 9.04, below the 50-day MA of 8.98, and below the 200-day MA of 10.69, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 38.64 is Neutral, neither overbought nor oversold. The STOCH value of 6.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOGL.
Golden Ocean Group Risk Analysis
Golden Ocean Group disclosed 43 risk factors in its most recent earnings report. Golden Ocean Group reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Golden Ocean Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.88B | 5.64 | 14.71% | 15.83% | 33.31% | 62.94% | |
73 Outperform | $1.56B | 7.37 | 11.68% | 15.42% | 14.81% | 96.97% | |
72 Outperform | $308.57M | 10.11 | 6.57% | 8.42% | 5.24% | -47.66% | |
71 Outperform | $390.66M | 4.42 | 11.99% | 5.39% | 10.27% | 36.29% | |
70 Outperform | $577.23M | 7.90 | 8.30% | 11.63% | 10.21% | ― | |
62 Neutral | $8.17B | 12.83 | 0.26% | 3.07% | 3.83% | -16.44% | |
57 Neutral | $199.09M | 35.40 | 2.56% | 13.43% | -16.79% | -89.43% |
* Industrials Sector Average
Performance Comparison
GOGL
Golden Ocean Group
8.10
-3.81
-31.99%
DSX
Diana Shipping
1.77
-1.04
-37.01%
GNK
Genco Shipping
14.13
-5.06
-26.37%
SB
Safe Bulkers
3.79
-0.99
-20.71%
SBLK
Star Bulk Carriers
16.50
-5.35
-24.49%
PANL
Pangaea Logistics Solutions
4.88
-2.89
-37.19%
Golden Ocean Group Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -12.24% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While the company showed a significant increase in full-year net profit and declared a dividend, quarterly financial metrics such as revenue, EBITDA, and operating expenses showed declines. The strategic fleet management initiatives and positive market outlook provide optimism, but the increased costs and reduced quarterly performance indicate challenges.Highlights
Full-Year Net Profit Increase
Golden Ocean Group reported a full-year 2024 net profit of $223.2 million, up from $112.3 million in 2023.
Dividend Declaration
A dividend of $0.15 per share was declared for the fourth quarter of 2024.
Positive Outlook on Market Trends
The company remains fundamentally positive on the market outlook, expecting a stronger second half of 2025 and onwards.
Strategic Fleet Management
Golden Ocean exercised a purchase option for eight Capesize vessels, reducing Capesize cash breakeven by approximately $1,000 per day.
Lowlights
Decrease in Quarterly Revenue
Net revenues decreased to $174.9 million in Q4, down from $206.6 million in Q3.
Increased Operating Expenses
Operating expenses increased by $26 million from Q3, primarily due to drydocking costs and other related expenses.
Reduced Adjusted EBITDA
Adjusted EBITDA for Q4 2024 was $69.9 million, down from $124.4 million in Q3.
Significant Drydocking Costs
Drydocking costs rose to $34.3 million in Q4, impacting financial performance and leading to 364 days of off-hire.
Company Guidance
During the Golden Ocean Group Limited Q4 2024 earnings call, Interim CEO and CFO Peder Simonsen provided detailed guidance and metrics on the company's financial performance and strategic outlook. The company reported an adjusted EBITDA of $69.9 million for Q4, a decrease from $124.4 million in Q3, and a net income of $39 million, translating to earnings per share of $0.20. Full-year 2024 net profit surged to $223.2 million from $112.3 million in 2023. The fleet-wide net TCE rate was $20,800 per day, with Capesize and Panamax vessels achieving rates of $24,700 and $14,800 per day, respectively. Drydocking costs rose to $34.3 million for thirteen vessels, compared to $9.7 million for five vessels in Q3. The company declared a $0.15 per share dividend for Q4 and executed a purchase option for eight Capesize vessels for $112 million, partially financed by a $90 million credit facility, which will reduce cash breakeven by $1,000 per day. For Q1 2025, Golden Ocean secured TCE rates of $15,100 for 77% of Capesize days and $9,900 for 81% of Panamax days. The company anticipates a stronger market in the second half of 2025, supported by favorable drydocking timing and robust demand in emerging economies.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.