Golden Ocean Group Limited
Golden Ocean Group Limited Fundamental Analysis
Golden Ocean Group Limited (GOGL) shows weak financial fundamentals with a PE ratio of 31.08, profit margin of 8.34%, and ROE of 2.72%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 9.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GOGL's fundamental strength across five key dimensions:
Efficiency Score
WeakGOGL struggles to generate sufficient returns from assets.
Valuation Score
ModerateGOGL shows balanced valuation metrics.
Growth Score
ModerateGOGL shows steady but slowing expansion.
Financial Health Score
ModerateGOGL shows balanced financial health with some risks.
Profitability Score
ModerateGOGL maintains healthy but balanced margins.
Key Financial Metrics
Is GOGL Expensive or Cheap?
P/E Ratio
GOGL trades at 31.08 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GOGL's PEG of -0.63 indicates potential undervaluation.
Price to Book
The market values Golden Ocean Group Limited at 0.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.13 times EBITDA. This is generally considered low.
How Well Does GOGL Make Money?
Net Profit Margin
For every $100 in sales, Golden Ocean Group Limited keeps $8.34 as profit after all expenses.
Operating Margin
Core operations generate 20.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.72 in profit for every $100 of shareholder equity.
ROA
Golden Ocean Group Limited generates $1.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Golden Ocean Group Limited generates strong operating cash flow of $169.22M, reflecting robust business health.
Free Cash Flow
Golden Ocean Group Limited generates strong free cash flow of $121.19M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.61 in free cash annually.
FCF Yield
GOGL converts 7.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How GOGL Stacks Against Its Sector Peers
| Metric | GOGL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.08 | 26.49 | Worse (Expensive) |
| ROE | 2.72% | 1307.00% | Weak |
| Net Margin | 8.34% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.79 | 0.81 | Neutral |
| Current Ratio | 0.81 | 10.48 | Weak Liquidity |
| ROA | 1.51% | -1549792.00% (disorted) | Weak |
GOGL outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Golden Ocean Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.31%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
331.72%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
65.85%
Industry Style: Cyclical, Value, Infrastructure
High Growth