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Golden Ocean Group Limited (GOGL)
NASDAQ:GOGL
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Golden Ocean Group
(NASDAQ:GOGL)
Rating:63Neutral
Price Target:
$8.50
▲(3.28%Upside)
Golden Ocean Group (GOGL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.64B
Dividend Yield2.43%
Average Volume (3M)2.37M
Price to Earnings (P/E)14.5
Beta (1Y)1.36
Revenue Growth-7.73%
EPS Growth-39.13%
CountryUS
Employees44
SectorIndustrials
Sector Strength90
IndustryMarine Shipping
Share Statistics
EPS (TTM)-0.19
Shares Outstanding199,403,290
10 Day Avg. Volume3,343,321
30 Day Avg. Volume2,369,300
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)0.89
Price to Sales (P/S)0.00
P/FCF Ratio9.42
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit8.43
Enterprise Value/Ebitda1.63
Forecast
1Y Price Target
$11.19Price Target Upside35.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Golden Ocean Group Business Overview & Revenue Model
Company DescriptionGolden 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 MoneyGolden Ocean Group makes money through the operation and chartering of its fleet of dry bulk carriers. The company's revenue is primarily generated from voyage charters and time charters. In a voyage charter, Golden Ocean is contracted to transport a specific cargo from one port to another, charging a rate that typically includes fuel, port charges, and other voyage-related expenses. In a time charter, the company leases its vessels to customers for a specific period, during which the charterer pays a daily rate for the use of the ship, which covers operational expenses such as crew wages and maintenance. Key revenue streams also include spot market operations, where ships are chartered for single voyages under prevailing market conditions. Additionally, the company may engage in strategic partnerships and long-term contracts with major commodity producers and traders, contributing to its earnings stability and growth.
Golden Ocean Group Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2025)
| % Change Since: 6.33%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Negative
The earnings call presented a challenging quarter for Golden Ocean Group, with significant declines in EBITDA, net revenues, and TCE rates, leading to a net loss. However, there are positive developments in fleet renewal and strategic merger plans. While the outlook for Capesize demand remains positive, the current financial performance is under significant pressure.Q1-2025 Updates
Positive Updates
CMB.TECH Share Purchase and Merger Announcement
Following the share purchase by CMB.TECH of approximately 50% of the shares in Golden Ocean, a contemplated share-for-share merger between Golden Ocean and CMB.TECH was announced after the quarter ended.
Fleet Renewal Strategy
Golden Ocean entered into agreements for the sale of two older Kamsarmax vessels at attractive prices, in line with their fleet renewal strategy.
Dividend Declaration
A dividend of $0.05 per share was declared for the first quarter of 2025.
Positive Outlook on Capesize Demand
Positive long-term outlook for Capesize vessels due to infrastructure improvements and high-grade iron ore projects in Guinea and Brazil.
Negative Updates
Significant Decrease in EBITDA
Adjusted EBITDA decreased to $12.7 million in Q1 2025 from $69.9 million in Q4 2024.
Net Loss and Revenue Decline
Recorded a net loss of $44.1 million compared to a net income of $39 million in Q4 2024. Net revenues were $114.7 million, down from $174.9 million in Q4 2024.
High Drydocking Costs
Incurred drydocking costs of $38.3 million for 380 drydocking days in Q1, up from $34.3 million for 320 days in Q4.
Decreased TCE Rates
Total fleet TCE dropped to $14,400 per day in Q1 from $20,800 in Q4 2024.
Negative Cash Flow from Operations
Cash flow from operations was negative $3.3 million, down from $71.7 million in Q4 2024.
Company Guidance
During the Golden Ocean Group's Q1 2025 earnings call, CEO Peder Simonsen provided guidance on several financial metrics. The company reported an adjusted EBITDA of $12.7 million, down significantly from $69.9 million in Q4 2024, alongside a net loss of $44.1 million, translating to a $0.22 loss per share. TCE rates were approximately $16,800 per day for Capesize vessels and $10,400 per day for Panamax vessels, resulting in a fleet-wide net TCE of about $14,400 per day. The company incurred drydocking costs of $38.3 million over 380 days, compared to $34.3 million over 320 days in the previous quarter. For Q2 2025, 69% of Capesize days were fixed at a net TCE of about $19,000 per day, while 81% of Panamax days were fixed at about $11,100 per day. Additionally, a dividend of $0.05 per share was declared for Q1 2025. The call also highlighted a merger announcement with CMB.TECH and ongoing fleet renewal strategies, including the sale of two older Kamsarmax vessels.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
Positive
8.23
Price Trends
7.75
Positive
7.81
Positive
8.81
Negative
Market Momentum
0.16
Negative
58.62
Neutral
71.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOGL, the sentiment is Positive. The current price of 8.23 is above the 20-day moving average (MA) of 7.87, above the 50-day MA of 7.75, and below the 200-day MA of 8.81, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 71.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.15B | 3.94 | 12.57% | 4.79% | 17.77% | -5.90% | |
74 Outperform | $1.19B | 3.71 | 11.19% | 0.49% | 0.28% | -17.08% | |
74 Outperform | $2.17B | 9.39 | 11.09% | 1.08% | 25.60% | -9.32% | |
74 Outperform | $1.86B | 0.79 | 72.40% | 19.12% | 65.83% | ― | |
71 Outperform | $1.65B | 3.69 | 14.14% | 3.78% | 4.93% | -17.08% | |
65 Neutral | $10.94B | 15.63 | 5.18% | 1.91% | 3.14% | -27.13% | |
63 Neutral | $1.64B | 14.48 | 6.06% | 2.43% | -7.73% | -39.13% |
* Industrials Sector Average
Performance Comparison
GOGL
Golden Ocean Group
8.23
-4.16
-33.58%
CMRE
Costamare
9.60
-1.09
-10.20%
DAC
Danaos
89.89
6.97
8.41%
NMM
Navios Maritime Partners
40.71
-9.80
-19.40%
SBLK
Star Bulk Carriers
18.56
-4.03
-17.84%
ZIM
ZIM
15.48
4.38
39.46%
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.