Latest news with #GencoShipping
Yahoo
02-08-2025
- Business
- Yahoo
Is Genco Shipping & Trading Limited (GNK) One of the Safest Shipping Stocks for Dividend Investors?
Genco Shipping & Trading Limited (NYSE:GNK) is included among the 10 Best Shipping Stocks with Dividends. A close-up of a large cargo vessel in the open sea, its sails billowing in the wind. Genco Shipping & Trading Limited (NYSE:GNK) operates a fleet of over 40 dry bulk vessels that move commodities across international trade routes. The company offers a dedicated in-house commercial platform to assist clients in managing the transportation of iron ore, grain, steel, cement, and other dry cargo. Recently, it has drawn investor interest following a notable development— Diana Shipping, a well-established Greek dry bulk firm, has acquired a substantial equity stake in Genco worth around $46 million. This move signals a key development for both companies as they adapt to shifting dynamics in the global shipping and logistics sector. In its first quarter 2025 earnings report, Genco Shipping & Trading Limited (NYSE:GNK) highlighted that drybulk freight rates have seen an improvement starting from March 2025 and continuing into the second quarter, as indicated by the company's Q2 time charter equivalent (TCE) performance, which stands 18% above the levels recorded in the first quarter. Supported by low financial leverage, a favorable cash flow breakeven rate, and ample access to capital, the company believes it is well-positioned to navigate the ongoing geopolitical volatility. On May 8, Genco Shipping & Trading Limited (NYSE:GNK) reduced its dividend by 50%, a move that left many investors disappointed. Despite the cut, the company has maintained a relatively consistent track record of paying dividends over time. GEN has been making uninterrupted dividend payments to shareholders for 23 quarters. Its quarterly dividend comes in at $0.15 per share and has a dividend yield of 3.79%, as of July 30. While we acknowledge the potential of GNK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Yahoo
25-07-2025
- Business
- Yahoo
DNB Carnegie Downgrades Genco Shipping & Trading Limited (GNK) to Hold from Buy
Genco Shipping & Trading Limited (NYSE:GNK) is one of the best shipping and container stocks to invest in now. On July 7, DNB Carnegie downgraded Genco Shipping & Trading Limited (NYSE:GNK) to Hold from Buy with a $14.90 price target. A close-up of a large cargo vessel in the open sea, its sails billowing in the wind. Genco Shipping & Trading Limited (NYSE:GNK) reported a net loss of $11.9 million in fiscal Q1 2025, which translates to basic and diluted net loss per share of $0.28. The company also reported an EBITDA of $7.9 million and voyage revenues of $71.3 million. Genco Shipping & Trading Limited (NYSE:GNK) declared a dividend of $0.15 per share for Q1 2025, representing its 23rd consecutive quarterly dividend. Building on its dividend strategy, the company announced a $50 million share repurchase program. Genco Shipping & Trading Limited (NYSE:GNK) is an international ship owning company that transports coal, iron ore, steel products, bauxite, and other drybulk cargoes. Its operations are divided into the Major Bulk and Minor Bulk segments. The Major Bulk segment comprises Capesize vessels, while the Minor Bulk segment focuses on Ultramax and Supramax vessels. While we acknowledge the potential of GNK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
16-07-2025
- Business
- Yahoo
Genco Shipping & Trading (NYSE:GNK) Shareholders Will Want The ROCE Trajectory To Continue
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So when we looked at Genco Shipping & Trading (NYSE:GNK) and its trend of ROCE, we really liked what we saw. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. What Is Return On Capital Employed (ROCE)? For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Genco Shipping & Trading is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.045 = US$44m ÷ (US$1.0b - US$46m) (Based on the trailing twelve months to March 2025). Thus, Genco Shipping & Trading has an ROCE of 4.5%. In absolute terms, that's a low return and it also under-performs the Shipping industry average of 8.5%. Check out our latest analysis for Genco Shipping & Trading Above you can see how the current ROCE for Genco Shipping & Trading compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Genco Shipping & Trading . What The Trend Of ROCE Can Tell Us It's nice to see that ROCE is headed in the right direction, even if it is still relatively low. The data shows that returns on capital have increased by 10,432% over the trailing five years. That's a very favorable trend because this means that the company is earning more per dollar of capital that's being employed. Interestingly, the business may be becoming more efficient because it's applying 21% less capital than it was five years ago. If this trend continues, the business might be getting more efficient but it's shrinking in terms of total assets. In Conclusion... In summary, it's great to see that Genco Shipping & Trading has been able to turn things around and earn higher returns on lower amounts of capital. And a remarkable 237% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 2 warning signs for Genco Shipping & Trading (of which 1 is potentially serious!) that you should know about. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
