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Golden Ocean Group Limited (GOGL)
NASDAQ:GOGL
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Golden Ocean Group
(NASDAQ:GOGL)
Rating:67Neutral
Price Target:
$8.50
▲(6.52% Upside)
Golden Ocean Group (GOGL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.59B
Dividend Yield10.03%
Average Volume (3M)2.79M
Price to Earnings (P/E)14.0
Beta (1Y)1.37
Revenue Growth-7.73%
EPS Growth-39.13%
CountryUS
Employees44
SectorIndustrials
Sector Strength73
IndustryMarine Shipping
Share Statistics
EPS (TTM)N/A
Shares Outstanding144,248,000
10 Day Avg. Volume1,644,761
30 Day Avg. Volume2,792,007
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.84
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit8.29
Enterprise Value/Ebitda6.36
Forecast
1Y Price Target
$9.51Price Target Upside19.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Golden Ocean Group Business Overview & Revenue Model
Company DescriptionGolden Ocean Group Limited (GOGL) is a leading provider of dry bulk shipping services, primarily engaged in the transportation of bulk commodities such as iron ore, coal, and grain. The company operates a modern fleet of dry bulk carriers, including Capesize, Panamax, and Supramax vessels, and is headquartered in Hamilton, Bermuda. GOGL focuses on maintaining high operational standards and sustainability practices, catering to a diverse global customer base that includes major commodity producers and traders.
How the Company Makes MoneyGolden Ocean Group generates revenue primarily through the chartering of its fleet of dry bulk carriers. The company employs a mix of spot market charters and time charters, allowing it to capitalize on fluctuating freight rates. Key revenue streams include long-term contracts with major shipping clients, which provide stable income, and spot market transactions, which can yield higher rates during peak demand periods. Additionally, the company may engage in strategic partnerships with commodity producers and traders to secure consistent business. Factors contributing to its earnings include global demand for raw materials, shipping rates, and operational efficiencies achieved through fleet management.
Golden Ocean Group Earnings Call Summary
Earnings Call Date:Aug 21, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Negative
The earnings call reflects a challenging quarter for Golden Ocean Group, with significant drops in EBITDA, net revenue, and TCE rates contributing to a net loss. Despite these challenges, there are positive developments such as fleet renewal efforts and supportive long-term market signals. However, the lowlights outweigh the highlights, indicating a predominantly negative sentiment.Q1-2025 Updates
Positive Updates
Fleet Renewal Strategy
Entered into agreements for the sale of two older Kamsarmax vessels at attractive prices.
Dividend Declaration
Declared a dividend of $0.05 per share for the first quarter of 2025.
Progress in Fleet Drydocking
Completed drydocking for three vessels as part of the ongoing fleet renewal and maintenance strategy.
Positive Outlook for Capesize Vessels
Long-term positive outlook for Capesize vessels supported by infrastructure developments in Guinea and Brazil.
Supportive Market Signals
Signs of supportive signals from Australian and Brazilian miners on expected annual export volumes despite geopolitical unrest.
Negative Updates
Significant Drop in EBITDA
Adjusted EBITDA fell to $12.7 million from $69.9 million in the fourth quarter.
Net Loss and Earnings Decline
Recorded a net loss of $44.1 million and a loss per share of $0.22 compared to a net income of $39 million and earnings per share of $0.20 in the fourth quarter.
Decrease in Net Revenue
Net revenues dropped to $114.7 million from $174.9 million in Q4.
High Drydocking Costs
Incurred $38.3 million in drydocking costs for 380 drydocking days, up from $34.3 million in Q4.
Decline in TCE Rates
Fleet-wide net TCE fell to $14,400 per day from $20,800 in Q4.
Negative Cash Flow from Operations
Cash flow from operations was negative $3.3 million, down from $71.7 million in Q4.
Challenges in Guinea Exports
Instability in Guinea impacting mining licenses and causing export disruptions.
Company Guidance
During the Q1 2025 earnings call, Golden Ocean Group provided various metrics and guidance for the upcoming quarters. The company reported a significant drop in adjusted EBITDA to $12.7 million and a net loss of $44.1 million, with a loss per share of $0.22. Compared to the previous quarter, their TCE rates were about $16,800 per day for Capesizes and $10,400 per day for Panamax vessels, leading to a fleet-wide net TCE of $14,400 per day. They incurred $38.3 million in drydocking costs for 380 days, impacting their operational capacity. Looking forward, they have secured a net TCE of $19,000 per day for 69% of Capesize days and $11,100 for 81% of Panamax stays in Q2, with further improvements in Q3. The company declared a $0.05 per share dividend for Q1 and discussed a contemplated share-for-share merger with CMB.TECH following a significant share purchase. Despite challenging market conditions, including geopolitical unrest and disruptions in Guinea and Peru, the company remains optimistic about the second half of the year, citing positive signals from major miners and expected increases in export volumes.Golden Ocean Group Financial Statement Overview
Summary
Golden Ocean Group has shown considerable improvement in its financial performance, with strong profitability and margin improvements. The income statement reflects enhanced operational efficiency, and the balance sheet remains stable with manageable leverage. However, a slight decrease in the equity ratio and revenue volatility from 2022 are noted concerns. The positive turnaround in cash flow is promising, indicating effective cash management.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.75
Positive
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.65
Positive
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.70
Positive
| 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 |
| EBITDA | 432.84M | 352.02M | 530.74M | 691.22M | 21.24M |
| Net Income | 223.21M | 112.27M | 461.85M | 527.22M | -137.67M |
Balance Sheet | |||||
| Total Assets | 3.38B | 3.49B | 3.26B | 3.45B | 2.72B |
| Cash, Cash Equivalents and Short-Term Investments | 129.11M | 116.38M | 134.78M | 197.03M | 153.09M |
| Total Debt | 1.38B | 1.47B | 1.25B | 1.42B | 1.24B |
| 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
Negative
7.98
Price Trends
8.11
Negative
7.81
Positive
8.45
Negative
Market Momentum
-0.08
Positive
44.51
Neutral
37.04
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 7.98 is below the 20-day moving average (MA) of 8.27, below the 50-day MA of 8.11, and below the 200-day MA of 8.45, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 is Neutral, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.39B | 4.88 | 14.61% | 3.87% | -7.24% | -16.39% | |
80 Outperform | $1.69B | 3.80 | 13.38% | 3.62% | 5.63% | -17.54% | |
79 Outperform | $1.37B | 4.67 | 9.85% | 0.42% | -0.47% | -22.25% | |
74 Outperform | $2.14B | 17.63 | 5.11% | 4.13% | 2.95% | -61.74% | |
67 Neutral | $1.59B | 14.04 | 6.06% | 10.03% | -7.73% | -39.13% | |
64 Neutral | $10.73B | 15.65 | 7.61% | 2.01% | 2.80% | -14.92% | |
60 Neutral | $1.65B | 0.82 | 59.06% | 57.16% | 43.57% | ― |
* Industrials Sector Average
Performance Comparison
GOGL
Golden Ocean Group
7.98
-2.47
-23.64%
CMRE
Costamare
11.95
2.60
27.81%
DAC
Danaos
93.94
19.83
26.76%
NMM
Navios Maritime Partners
47.93
-1.59
-3.21%
SBLK
Star Bulk Carriers
19.11
0.17
0.90%
ZIM
ZIM
13.33
2.75
25.99%
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.