Golden Ocean Group (GOGL) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: 14.66%
• Average Volume (3M): 4.80M
• Price to Earnings (P/E): 6.4
• Beta (1Y): 1.28
• Revenue Growth: 9.33%
• EPS Growth: 98.70%
• Country: US
• Employees: 44
• Sector: Industrials
• Sector Strength: 66
• Industry: Marine Shipping
• EPS (TTM): 1.12
• Shares Outstanding: 199,403,290
• 10 Day Avg. Volume: 5,358,767
• 30 Day Avg. Volume: 4,795,236
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.03
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.91
• Price Target Upside: 123.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Golden Ocean Group's stock score is driven by strong financial performance improvements, particularly in profitability and cash flow management. The valuation is attractive due to a low P/E ratio and high dividend yield, appealing to value investors. However, technical analysis shows bearish trends, with the stock trading below key moving averages and indicators suggesting oversold conditions. Despite positive long-term market outlook and strategic initiatives, recent quarterly declines and increased costs present risks, moderating the overall score.

Golden Ocean Group Business Overview & Revenue Model

Company Description

Golden Ocean Group Limited, a shipping company, owns and operates a fleet of dry bulk vessels comprising Newcastlemax, Capesize, Panamax, and Ultramax vessels worldwide. It owns and operates dry bulk vessels in the spot and time charter markets. The company transports bulk commodities, such as ores, coal, grains, and fertilizers. As of March 23, 2022, it owned a fleet of 81 dry bulk vessels. Golden Ocean Group Limited is based in Hamilton, Bermuda.

How the Company Makes Money

Golden Ocean Group makes money primarily through the chartering of its dry bulk vessels to customers who need to transport bulk commodities across the globe. The company generates revenue by entering into time charters, voyage charters, and contracts of affreightment with various clients, including leading commodity producers, traders, and end-users. Time charters involve leasing vessels for a specific period, allowing clients to utilize the ships as needed while paying daily charter rates. Voyage charters, on the other hand, are agreements to transport specific quantities of cargo from one port to another, with revenue based on freight rates per ton of cargo carried. Additionally, the company's earnings are influenced by market conditions such as freight rates, demand for commodities, and fuel costs. Strategic partnerships with key industry players and ongoing fleet optimization efforts also play a significant role in enhancing Golden Ocean Group's profitability and market presence.

Golden Ocean Group Financial Statement Overview

Summary

Golden Ocean Group has shown considerable improvement in its financial performance. The income statement reflects strong profitability and margin improvements, despite a slight revenue decline from 2022. The balance sheet remains stable with a manageable debt level, though the slight decrease in equity ratio warrants attention. The positive turnaround in cash flow is promising, indicating effective cash management. Continued focus on revenue growth and maintaining leverage will be crucial for sustaining this positive trajectory.

Income Statement

Golden Ocean Group has shown a solid improvement in its income statement metrics. The gross profit margin improved to 47.4% in 2024 from 23.7% in 2023, demonstrating enhanced operational efficiency. The net profit margin also increased significantly to 23.1% from 12.7% over the same period, reflecting better cost management and profitability. Revenue growth was positive, with a growth rate of 9.3% from 2023 to 2024. However, the revenue decreased compared to 2022, indicating some volatility. EBIT and EBITDA margins improved, suggesting effective control over operating expenses.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.73 in 2024, indicating manageable leverage. Return on equity improved to 11.7% in 2024 from 5.8% in 2023, showcasing better profitability for shareholders. However, the equity ratio decreased slightly, suggesting a higher proportion of assets financed by liabilities, which could pose future risks if not managed well.

Cash Flow

Golden Ocean Group's cash flow metrics illustrate a positive trend with free cash flow turning positive in 2024 at $263.8 million, compared to negative in 2023. The operating cash flow to net income ratio was robust at 1.64, indicating strong cash generation relative to net income. The free cash flow to net income ratio also improved, pointing to better cash flow management. However, the company needs to maintain this momentum to ensure continued financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
968.42M	885.77M	1.11B	1.20B	607.94M
	Gross Profit
458.84M	209.88M	421.69M	528.16M	44.05M
	EBIT
314.34M	188.61M	435.09M	513.61M	19.77M
	EBITDA
432.84M	352.02M	530.74M	691.22M	21.24M
	Net Income Common Stockholders
223.21M	112.27M	461.85M	527.22M	-137.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
129.11M	116.38M	134.78M	197.03M	153.09M
	Total Assets
3.38B	3.49B	3.26B	3.45B	2.72B
	Total Debt
1.38B	1.47B	1.25B	1.42B	1.24B
	Net Debt
1.25B	1.35B	1.11B	1.22B	1.09B
	Total Liabilities
1.48B	1.57B	1.34B	1.53B	1.35B
	Stockholders Equity
1.90B	1.92B	1.92B	1.93B	1.37B
Cash Flow		Free Cash Flow
263.85M	-211.21M	442.36M	115.40M	115.37M
	Operating Cash Flow
365.30M	266.34M	503.39M	560.40M	140.64M
	Investing Cash Flow
-8.20M	-381.77M	72.82M	-390.02M	-19.15M
	Financing Cash Flow
-344.00M	96.00M	-648.15M	-135.46M	-109.63M

Golden Ocean Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7.12 is below the 20-day moving average (MA) of 7.52, below the 50-day MA of 8.26, and below the 200-day MA of 10.01, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 68.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOGL.

Golden Ocean Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAC	76 Outperform	$1.43B	2.94	15.68%	4.30%	6.00%	-9.89%
ZIM	73 Outperform	$1.66B	0.77	66.17%	51.78%	63.25%	―
NMM	72 Outperform	$960.70M	2.72	12.46%	0.61%	2.08%	-14.91%
SBLK	72 Outperform	$1.62B	4.92	14.71%	15.52%	33.31%	62.94%
GOGL	69 Neutral	$1.43B	6.42	11.68%	14.66%	9.33%	98.70%
CMRE	64 Neutral	$1.03B	3.52	13.07%	5.15%	37.10%	-17.36%
Sector *	62 Neutral	$4.13B	11.17	5.46%	215.76%	4.12%	-8.54%