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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.

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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 Q3 2025 Earnings: A Strong Outlook Amidst a Resilient Drybulk Market

Genco Shipping & Trading Limited reported a net loss of $1.1 million for Q3 2025, with adjusted EBITDA of $21.7 million. The company's EPS came in at -$0.01, in line with analyst estimates. Revenue growth is expected to be robust, with analysts estimating a 25.5% increase in revenues for the next year. The company's cash position as of September 30 was $90 million, and its debt outstanding was $170 million, reflecting a significant reduction in debt since 2021.

Publication Date: Nov -30

📋 Highlights
  • Dividend Yield Strengthening Shareholder Returns:: Declared $0.15/share dividend (43% yield of share price) for 25th consecutive quarter
  • Q4 Freight Market Optimism:: Estimated TCE >$20,000/day (Capesize: $27,000/day; minor bulk: $16,000/day) with cash flow breakeven at $10,000/day
  • Debt Reduction Progress:: Debt balance slashed from $450M to $170M since 2021, with $430M undrawn revolver availability
  • Fleet Composition Leverage:: 40% Capesize/60% Ultramax/Supramax mix optimized for high operating leverage in drybulk markets
  • Shareholder Protection Measure:: Implemented poison pill after 15% stake accumulation to ensure fair value for all shareholders

Operational Highlights and Market Outlook

The company's operational performance was strong, with a fleet composition of 40% Capesize and 60% Ultramax/Supramax vessels. Genco's drybulk market analyst highlighted the improvement in the freight rate environment in Q3 and Q4, driven by record Brazilian iron ore exports, increased coal shipments to China, and strong grain trade. The company's CEO, John Wobensmith, noted that the improvement in the freight market is due to a combination of seasonality, record Brazilian iron ore exports, and strong demand for coal and grain.

Valuation and Dividend Yield

Genco's valuation metrics indicate a relatively attractive dividend yield of 3.96%. The company's P/E Ratio stands at 53.22, while its P/B Ratio is 0.92, suggesting that the stock may be undervalued relative to its book value. The EV/EBITDA ratio is 9.05, indicating a reasonable valuation relative to its earnings. The company's dividend policy targets a distribution based on 100% of operating cash flow less a voluntary reserve, with a $20 million quarterly reserve.

Debt Reduction and Capital Allocation

Genco has made significant progress in reducing its debt balance, from $450 million to $170 million since 2021. The company's undrawn revolver availability is currently $430 million, providing a comfortable liquidity position. The company's focus on debt reduction and its commitment to returning cash to shareholders through dividends are positive indicators of its capital allocation strategy.

Market Fundamentals and Growth Prospects

The drybulk market is expected to remain resilient, driven by growth in long-haul iron ore and bauxite trade from Brazil and West Africa. The company's CEO highlighted the expected growth in demand from Vale and the bauxite trade, as well as a significant tonnage increase at Simandou in the second half of next year. With a strong market fundamentals and a low financial leverage, Genco is well-positioned to capitalize on improving drybulk fundamentals in the remainder of 2025 and into 2026.

3. NewsRoom

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Genco Shipping & Trading Limited $GNK Shares Acquired by AXQ Capital LP

Nov -25

Source: defenseworld.net

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Genco Shipping & Trading Confirms Receipt of a Non-Binding Indicative Proposal from Diana Shipping Inc.

Nov -24

Source: globenewswire.com

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Genco Shipping & Trading to Acquire Two High-Specification Newcastlemax Vessels

Nov -19

Source: globenewswire.com

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Genco Shipping & Trading Limited Adopts Amendment to Limited Duration Shareholder Rights Plan to Protect the Best Interests of Shareholders

Nov -10

Source: globenewswire.com

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Genco Shipping & Trading Limited (GNK) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Genco Shipping & Trading (GNK) Reports Q3 Loss, Misses Revenue Estimates

Nov -05

Source: zacks.com

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Genco Shipping & Trading Limited Announces Q3 2025 Financial Results

Nov -05

Source: globenewswire.com

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Genco Shipping & Trading Limited Announces Third Quarter 2025 Conference Call and Webcast

Oct -17

Source: globenewswire.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

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.32$

Current Price

19.32$

Potential

-0.00%

Expected Cash-Flows