Genco Shipping (GNK, Financial) is a New York Stock Exchange-listed shipping company that is now trading at a discount of 8% to its book value. This is somewhat remarkable given the S&P 500’s current price-book ratio of 4.46.
Headquartered in New York with major operations centers in Hong Kong and Copenhagen, Genco Shipping is an international ship-owning company in business since 2004. It uses ocean carriers to transport dry bulk, including iron ore, coal, grain, steel products and other items.
The price-earnings ratio is a low 4.71 with a forward price-earnings ratio of 4.74. For full-year 2021, earnings were up by an eye-popping 179.40% and the EPS growth rate over the past five years is 16.50%. Wall Street is expecting some slower growth in the coming year.
The amount of long-term debt on the books is greatly exceeded by shareholder equity and the current ratio sits at a very positive 4.20.
Genco Shipping pays a $2.73 per share dividend to investors for an annualized yield of 2.98%.
This month, the stock hit a new 52-week high, showing the industry and the business have momentum in the market:
The mrket capitalization amounts to $844.61 million with an enterprise value of $976.33 million.
The summary of Genco Shipping’s financials by GuruFocus shows three good signs, four medium warning signs and one severe warning sign:
Competitors include Eagle Bulk Shipping (EGLE, Financial), Safe Bulkers (SB, Financial), Golden Ocean Group (GOGL, Financial) and Danaos (DAC, Financial), among others.
Legendary hedge fund manager Jim Simons (Trades, Portfolio) added to his positions in the equity at least twice last year, according to the 13F filings.
Genco Shipping may be benefiting from global supply chain issues and from the market uncertainties created by Russia’s invasion of Ukraine. These factors result in bulk carriers being able to raise their fees.
The stock’s new high at the beginning of March demonstrates how much confidence investors are finding in the company’s prospects.
