Download PDF

1. Company Snapshot

1.a. Company Description

Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes worldwide.The company owns and operates dry bulk carrier vessels to transports iron ore, coal, grains, steel products, and other dry-bulk cargoes.It charters its vessels primarily to trading houses, including commodities traders; producers; and government-owned entities.


As of December 31, 2021, the company fleet consisted of 44 dry bulk carriers, including 17 Capesize, 15 Ultramax, and 12 Supramax with an aggregate capacity of approximately 4,636,000 deadweight tons.Genco Shipping & Trading Limited was incorporated in 2004 and is headquartered in New York, New York.

Show Full description

1.b. Last Insights on GNK

The recent 3-month performance of Genco Shipping & Trading Limited was negatively impacted by the seasonal low in the Baltic Drybulk Index, which resulted in lower revenue and dividend payouts. The company's strategic capital management, including vessel acquisitions during low BDI periods, demonstrates operational foresight, but the current stock price offers value at a discount to book value. Additionally, the recent dividend cut and lower earnings per share compared to the same period last year further contributed to the negative drivers.

1.c. Company Highlights

2. Genco Shipping's Strong Q4 2025 Earnings Driven by High EBITDA and Dividend Payout

Genco Shipping & Trading Limited reported adjusted net income of $17.3 million or $0.39 earnings per share (EPS) for Q4 2025, beating analyst estimates of $0.35 EPS. The company's adjusted EBITDA for the quarter totaled $42 million, a 94% increase compared to Q3 2025. Revenue growth was driven by high Time Charter Equivalent (TCE) rates, with the company achieving $20,064 per day, its highest level for the year. The strong financial performance enabled Genco to declare its 26th consecutive dividend, representing an annualized yield of 9% on its current share price.

Publication Date: Mar -05

📋 Highlights
  • Dividend Growth & Stability:: Declared 26th consecutive dividend with 9% annualized yield, highest level since Q4 2022.
  • EBITDA & TCE Performance:: Achieved record annual EBITDA of $42M and TCE of $20,064/day in Q4 2025.
  • Fleet Value Appreciation:: Capesize vessels gained $40M in value, generating over 30% IRR since 2023 acquisitions.
  • Future Contract Outlook:: 80% of Q1 2026 owned days fixed at ~$18,000/day, with TCE expected to rise >50% YoY.

Operational Highlights and Fleet Strategy

The company's fleet strategy has been successful, with the acquisition of six Capesize and Newcastlemax vessels since 2023. Genco's Capesize vessels have increased in value by nearly $40 million despite age depreciation, generating an IRR of over 30% on these ships since acquisition. The company has taken advantage of its strong liquidity position to make opportunistic acquisitions of modern, high-specification vessels at attractive values. As John Wobensmith, likely a senior executive, noted during the earnings call, the company's top priority is its dividend and value strategy, with a focus on cycling out older vessels and redeploying funds into modern, fuel-efficient ships.

Outlook and Valuation

Looking ahead to Q1 2026, Genco has 80% of its owned available days fixed at approximately $18,000 per day, with TCE expected to increase over 50% year-over-year. Analysts estimate revenue growth of 1.6% for the next year. With a current P/E Ratio of -240.74, the market is pricing in significant growth expectations. However, other valuation metrics such as P/B Ratio of 1.17 and EV/EBITDA of 13.8 suggest a more moderate valuation. The Dividend Yield stands at 3.11%, providing a relatively stable return for investors. The company's strong balance sheet, with $400 million of undrawn revolver availability, and low financial leverage provide a compelling risk-reward balance for shareholders.

Financial Position and Leverage

Genco's cash and debt positions as of December 31, 2025, were $55.5 million and $200 million, respectively. The company's pro forma borrowing capacity would increase to $680 million upon the delivery of two 2020-built Newcastlemax vessels in March 2026, with expected post-acquisition debt outstanding of $330 million. The Net Debt / EBITDA ratio stands at 1.68, indicating a manageable debt burden. The company's operating leverage, combined with low financial leverage, positions Genco for potential long-term success.

3. NewsRoom

Card image cap

Genco Shipping & Trading Issues Statement Regarding Diana Shipping's Letter to Shareholders

Apr -13

Source: globenewswire.com

Card image cap

Genco Shipping: Freight Rates Offer Hope, But The Cycle Isn't On Your Side

Apr -10

Source: seekingalpha.com

Card image cap

Genco Shipping & Trading Launches Website for Shareholders

Apr -07

Source: globenewswire.com

Card image cap

Genco Shipping & Trading Sends Letter to Shareholders

Mar -30

Source: globenewswire.com

Card image cap

Genco Shipping & Trading Limited Announces Delivery of Second High Specification Newcastlemax Vessel This Year

Mar -24

Source: globenewswire.com

Card image cap

Genco Shipping & Trading Issues Statement

Mar -20

Source: globenewswire.com

Card image cap

Here's Why Investors Should Bet on Genco Shipping Stock Right Now

Mar -20

Source: zacks.com

Card image cap

Genco Rejects Revised Takeover Proposal From Diana Shipping

Mar -19

Source: wsj.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Spot Market Voyage

Expected Growth: 4.83%

The 4.83% growth in Spot Market Voyage from Genco Shipping & Trading Limited is driven by increasing global trade, rising commodity demand, and a growing need for dry bulk shipping. Additionally, the company's modern fleet and operational efficiency have enabled it to capitalize on the upswing in the shipping market, further contributing to its growth.

Lease

Expected Growth: 4.83%

The 4.83% growth in the lease from Genco Shipping & Trading Limited is driven by increasing global trade, rising commodity demand, and a growing need for dry bulk shipping. Additionally, Genco's modern fleet and operational efficiency have enabled it to capitalize on the upswing in the shipping market, further contributing to its growth.

7. Detailed Products

Dry Bulk Shipping

Genco Shipping & Trading Limited provides dry bulk shipping services, transporting a wide range of dry bulk commodities such as iron ore, coal, and grains.

Chartering

The company offers chartering services, providing vessels for short-term or long-term charter to customers in need of dry bulk cargo transportation.

Vessel Management

Genco provides vessel management services, including technical management, crew management, and commercial management.

Freight Trading

The company engages in freight trading, buying and selling freight forward agreements and other derivatives to manage risk and optimize returns.

Vessel Ownership

Genco owns and operates a fleet of dry bulk vessels, providing a stable source of revenue through chartering and trading activities.

8. Genco Shipping & Trading Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Genco Shipping & Trading Limited is medium due to the availability of alternative modes of transportation, such as air and land transportation, which can substitute for sea transportation.

Bargaining Power Of Customers

The bargaining power of customers for Genco Shipping & Trading Limited is high due to the concentration of major charterers and the ability of these customers to negotiate better rates and terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Genco Shipping & Trading Limited is low due to the availability of multiple suppliers of ships and shipping services, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

The threat of new entrants for Genco Shipping & Trading Limited is low due to the high barriers to entry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry for Genco Shipping & Trading Limited is high due to the competitive nature of the shipping industry, with many players competing for market share and charter rates.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.41%
Debt Cost 4.34%
Equity Weight 82.59%
Equity Cost 9.44%
WACC 8.56%
Leverage 21.07%

11. Quality Control: Genco Shipping & Trading Limited passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Algoma Central

A-Score: 7.6/10

Value: 8.4

Growth: 4.4

Quality: 5.4

Yield: 9.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Ardmore Shipping

A-Score: 6.8/10

Value: 8.4

Growth: 8.9

Quality: 6.9

Yield: 7.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Genco Shipping & Trading

A-Score: 6.4/10

Value: 4.8

Growth: 4.2

Quality: 5.2

Yield: 9.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
SFL Corporation

A-Score: 5.8/10

Value: 7.0

Growth: 6.0

Quality: 3.3

Yield: 10.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Pangaea Logistics Solutions

A-Score: 5.6/10

Value: 5.7

Growth: 4.1

Quality: 3.6

Yield: 8.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
SEACOR Marine

A-Score: 4.0/10

Value: 9.1

Growth: 2.0

Quality: 3.3

Yield: 0.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.92$

Current Price

23.93$

Potential

-0.00%

Expected Cash-Flows