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Golden Ocean Group Limited (GOGL)
NASDAQ:GOGL
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Golden Ocean Group
(NASDAQ:GOGL)
70Neutral
Golden Ocean Group (GOGL) vs. S&P 500 (SPY)
Market Cap
$1.59B
Dividend Yield13.14%
Average Volume (3M)3.47M
Price to Earnings (P/E)7.2
Beta (1Y)1.30
Revenue Growth9.33%
EPS Growth98.70%
CountryUS
Employees44
SectorIndustrials
Sector Strength91
IndustryMarine Shipping
Share Statistics
EPS (TTM)-0.19
Shares Outstanding199,403,290
10 Day Avg. Volume1,874,375
30 Day Avg. Volume3,468,790
Financial Highlights & Ratios
PEG Ratio-0.90
Price to Book (P/B)0.79
Price to Sales (P/S)0.00
P/FCF Ratio5.65
Enterprise Value/Market Cap1.72
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit7.77
Enterprise Value/Ebitda1.50
Forecast
1Y Price Target
$13.38Price Target Upside71.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Golden Ocean Group Business Overview & Revenue Model
Company DescriptionGolden Ocean Group (GOGL) is a leading international dry bulk shipping company that specializes in the transportation of bulk commodities such as iron ore, coal, grain, and fertilizers. The company operates a modern fleet primarily comprised of Capesize, Panamax, and Supramax vessels, serving major charterers and fulfilling their global trade needs. As a key player in the maritime industry, Golden Ocean Group leverages its strategic position to provide reliable and efficient shipping solutions across the world's oceans.
How the Company Makes MoneyGolden 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 demonstrated a solid improvement in profitability and cash flow, with enhanced margins and positive cash flow. However, revenue volatility and a slight decrease in the equity ratio pose some concerns. The overall financial health shows promise but requires attention to leverage and revenue growth.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 | 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
Negative
7.79
Price Trends
7.67
Positive
8.34
Negative
9.56
Negative
Market Momentum
0.08
Negative
50.55
Neutral
72.35
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 7.79 is above the 20-day moving average (MA) of 7.78, above the 50-day MA of 7.67, and below the 200-day MA of 9.56, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 50.55 is Neutral, neither overbought nor oversold. The STOCH value of 72.35 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.05B | 3.61 | 12.57% | 5.25% | 17.77% | -5.90% | |
78 Outperform | $1.62B | 3.56 | 14.14% | 3.80% | 4.93% | -17.08% | |
78 Outperform | $2.33B | 1.03 | 72.40% | 36.86% | 65.83% | ― | |
76 Outperform | $1.90B | 8.21 | 11.09% | 13.18% | 25.60% | -9.32% | |
75 Outperform | $1.19B | 3.73 | 11.12% | 0.50% | 0.28% | -17.09% | |
70 Neutral | $1.59B | 7.22 | 11.68% | 13.14% | 9.33% | 98.70% | |
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% |
* Industrials Sector Average
Performance Comparison
GOGL
Golden Ocean Group
7.79
-6.48
-45.41%
CMRE
Costamare
8.61
-1.84
-17.61%
DAC
Danaos
85.08
2.08
2.51%
NMM
Navios Maritime Partners
40.10
-9.38
-18.96%
SBLK
Star Bulk Carriers
16.48
-7.22
-30.46%
ZIM
ZIM Integrated Shipping Services
18.85
7.07
60.02%
Golden Ocean Group Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q4-2024)
| % Change Since: -15.60%|
Next Earnings Date:Aug 21, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.