Intrinsic value of Genco Shipping&Trading - GNK

Previous Close

$8.83

  Intrinsic Value

$5.87

stock screener

  Rating & Target

sell

-34%

Previous close

$8.83

 
Intrinsic value

$5.87

 
Up/down potential

-34%

 
Rating

sell

We calculate the intrinsic value of GNK stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  336
  518
  775
  1,125
  1,587
  2,182
  2,928
  3,845
  4,948
  6,250
  7,761
  9,488
  11,436
  13,607
  15,999
  18,611
  21,439
  24,477
  27,721
  31,167
  34,809
  38,645
  42,670
  46,884
  51,285
  55,874
  60,653
  65,625
  70,796
  76,170
Variable operating expenses, $m
  797
  1,232
  1,842
  2,673
  3,771
  5,184
  6,958
  9,136
  11,756
  14,849
  18,439
  22,544
  27,173
  32,330
  38,015
  44,220
  50,938
  58,157
  65,866
  74,053
  82,707
  91,820
  101,384
  111,395
  121,852
  132,756
  144,112
  155,926
  168,211
  180,979
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  797
  1,232
  1,842
  2,673
  3,771
  5,184
  6,958
  9,136
  11,756
  14,849
  18,439
  22,544
  27,173
  32,330
  38,015
  44,220
  50,938
  58,157
  65,866
  74,053
  82,707
  91,820
  101,384
  111,395
  121,852
  132,756
  144,112
  155,926
  168,211
  180,979
Operating income, $m
  -462
  -713
  -1,067
  -1,548
  -2,184
  -3,002
  -4,030
  -5,291
  -6,808
  -8,599
  -10,679
  -13,056
  -15,736
  -18,723
  -22,015
  -25,609
  -29,499
  -33,680
  -38,145
  -42,886
  -47,898
  -53,175
  -58,714
  -64,512
  -70,568
  -76,882
  -83,459
  -90,301
  -97,415
  -104,809
EBITDA, $m
  -347
  -536
  -802
  -1,164
  -1,642
  -2,257
  -3,030
  -3,978
  -5,119
  -6,465
  -8,029
  -9,816
  -11,831
  -14,077
  -16,552
  -19,254
  -22,179
  -25,322
  -28,679
  -32,244
  -36,012
  -39,980
  -44,144
  -48,503
  -53,056
  -57,804
  -62,748
  -67,892
  -73,241
  -78,800
Interest expense (income), $m
  0
  31
  49
  75
  113
  164
  231
  318
  427
  561
  722
  912
  1,133
  1,385
  1,669
  1,986
  2,335
  2,716
  3,129
  3,573
  4,046
  4,549
  5,081
  5,641
  6,228
  6,843
  7,486
  8,156
  8,853
  9,579
  10,334
Earnings before tax, $m
  -492
  -762
  -1,142
  -1,661
  -2,348
  -3,233
  -4,348
  -5,718
  -7,369
  -9,322
  -11,591
  -14,188
  -17,121
  -20,392
  -24,001
  -27,944
  -32,216
  -36,809
  -41,717
  -46,932
  -52,447
  -58,256
  -64,355
  -70,740
  -77,411
  -84,368
  -91,614
  -99,154
  -106,994
  -115,143
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -492
  -762
  -1,142
  -1,661
  -2,348
  -3,233
  -4,348
  -5,718
  -7,369
  -9,322
  -11,591
  -14,188
  -17,121
  -20,392
  -24,001
  -27,944
  -32,216
  -36,809
  -41,717
  -46,932
  -52,447
  -58,256
  -64,355
  -70,740
  -77,411
  -84,368
  -91,614
  -99,154
  -106,994
  -115,143

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,179
  3,366
  5,034
  7,304
  10,305
  14,167
  19,016
  24,969
  32,129
  40,582
  50,394
  61,611
  74,262
  88,357
  103,892
  120,852
  139,211
  158,941
  180,009
  202,383
  226,035
  250,940
  277,078
  304,439
  333,017
  362,817
  393,851
  426,139
  459,712
  494,607
Adjusted assets (=assets-cash), $m
  2,179
  3,366
  5,034
  7,304
  10,305
  14,167
  19,016
  24,969
  32,129
  40,582
  50,394
  61,611
  74,262
  88,357
  103,892
  120,852
  139,211
  158,941
  180,009
  202,383
  226,035
  250,940
  277,078
  304,439
  333,017
  362,817
  393,851
  426,139
  459,712
  494,607
Revenue / Adjusted assets
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
Average production assets, $m
  2,119
  3,275
  4,897
  7,105
  10,025
  13,782
  18,499
  24,291
  31,256
  39,479
  49,024
  59,936
  72,244
  85,956
  101,068
  117,567
  135,427
  154,620
  175,116
  196,882
  219,891
  244,119
  269,547
  296,164
  323,965
  352,955
  383,145
  414,556
  447,217
  481,163
Working capital, $m
  12
  19
  28
  40
  57
  79
  105
  138
  178
  225
  279
  342
  412
  490
  576
  670
  772
  881
  998
  1,122
  1,253
  1,391
  1,536
  1,688
  1,846
  2,011
  2,184
  2,363
  2,549
  2,742
Total debt, $m
  827
  1,279
  1,914
  2,779
  3,923
  5,394
  7,242
  9,510
  12,238
  15,458
  19,197
  23,470
  28,290
  33,661
  39,580
  46,041
  53,036
  60,553
  68,580
  77,105
  86,116
  95,605
  105,563
  115,988
  126,876
  138,230
  150,054
  162,356
  175,147
  188,442
Total liabilities, $m
  830
  1,282
  1,918
  2,783
  3,926
  5,398
  7,245
  9,513
  12,241
  15,462
  19,200
  23,474
  28,294
  33,664
  39,583
  46,045
  53,039
  60,556
  68,583
  77,108
  86,119
  95,608
  105,567
  115,991
  126,879
  138,233
  150,057
  162,359
  175,150
  188,445
Total equity, $m
  1,349
  2,084
  3,116
  4,521
  6,379
  8,769
  11,771
  15,456
  19,888
  25,120
  31,194
  38,137
  45,968
  54,693
  64,309
  74,807
  86,172
  98,384
  111,425
  125,275
  139,916
  155,332
  171,512
  188,448
  206,137
  224,584
  243,794
  263,780
  284,562
  306,162
Total liabilities and equity, $m
  2,179
  3,366
  5,034
  7,304
  10,305
  14,167
  19,016
  24,969
  32,129
  40,582
  50,394
  61,611
  74,262
  88,357
  103,892
  120,852
  139,211
  158,940
  180,008
  202,383
  226,035
  250,940
  277,079
  304,439
  333,016
  362,817
  393,851
  426,139
  459,712
  494,607
Debt-to-equity ratio
  0.610
  0.610
  0.610
  0.610
  0.610
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
Adjusted equity ratio
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619
  0.619

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -492
  -762
  -1,142
  -1,661
  -2,348
  -3,233
  -4,348
  -5,718
  -7,369
  -9,322
  -11,591
  -14,188
  -17,121
  -20,392
  -24,001
  -27,944
  -32,216
  -36,809
  -41,717
  -46,932
  -52,447
  -58,256
  -64,355
  -70,740
  -77,411
  -84,368
  -91,614
  -99,154
  -106,994
  -115,143
Depreciation, amort., depletion, $m
  115
  177
  265
  384
  542
  745
  1,000
  1,313
  1,690
  2,134
  2,650
  3,240
  3,905
  4,646
  5,463
  6,355
  7,320
  8,358
  9,466
  10,642
  11,886
  13,196
  14,570
  16,009
  17,512
  19,079
  20,711
  22,408
  24,174
  26,009
Funds from operations, $m
  -378
  -585
  -877
  -1,277
  -1,806
  -2,488
  -3,348
  -4,405
  -5,680
  -7,188
  -8,941
  -10,948
  -13,216
  -15,746
  -18,538
  -21,589
  -24,895
  -28,451
  -32,251
  -36,290
  -40,561
  -45,060
  -49,785
  -54,731
  -59,899
  -65,289
  -70,904
  -76,745
  -82,820
  -89,134
Change in working capital, $m
  5
  7
  9
  13
  17
  21
  27
  33
  40
  47
  54
  62
  70
  78
  86
  94
  102
  109
  117
  124
  131
  138
  145
  152
  158
  165
  172
  179
  186
  193
Cash from operations, $m
  -382
  -592
  -887
  -1,289
  -1,822
  -2,510
  -3,375
  -4,438
  -5,720
  -7,234
  -8,995
  -11,011
  -13,286
  -15,824
  -18,624
  -21,683
  -24,997
  -28,561
  -32,368
  -36,414
  -40,692
  -45,198
  -49,930
  -54,883
  -60,058
  -65,455
  -71,076
  -76,924
  -83,006
  -89,328
Maintenance CAPEX, $m
  -72
  -115
  -177
  -265
  -384
  -542
  -745
  -1,000
  -1,313
  -1,690
  -2,134
  -2,650
  -3,240
  -3,905
  -4,646
  -5,463
  -6,355
  -7,320
  -8,358
  -9,466
  -10,642
  -11,886
  -13,196
  -14,570
  -16,009
  -17,512
  -19,079
  -20,711
  -22,408
  -24,174
New CAPEX, $m
  -793
  -1,155
  -1,623
  -2,208
  -2,919
  -3,757
  -4,717
  -5,791
  -6,965
  -8,223
  -9,545
  -10,913
  -12,307
  -13,712
  -15,113
  -16,498
  -17,860
  -19,193
  -20,495
  -21,766
  -23,009
  -24,228
  -25,428
  -26,617
  -27,801
  -28,990
  -30,190
  -31,411
  -32,660
  -33,946
Cash from investing activities, $m
  -865
  -1,270
  -1,800
  -2,473
  -3,303
  -4,299
  -5,462
  -6,791
  -8,278
  -9,913
  -11,679
  -13,563
  -15,547
  -17,617
  -19,759
  -21,961
  -24,215
  -26,513
  -28,853
  -31,232
  -33,651
  -36,114
  -38,624
  -41,187
  -43,810
  -46,502
  -49,269
  -52,122
  -55,068
  -58,120
Free cash flow, $m
  -1,247
  -1,861
  -2,686
  -3,762
  -5,126
  -6,809
  -8,837
  -11,230
  -13,998
  -17,147
  -20,674
  -24,573
  -28,833
  -33,441
  -38,383
  -43,645
  -49,212
  -55,075
  -61,221
  -67,646
  -74,343
  -81,312
  -88,553
  -96,070
  -103,868
  -111,956
  -120,345
  -129,046
  -138,075
  -147,448
Issuance/(repayment) of debt, $m
  309
  452
  635
  865
  1,143
  1,471
  1,848
  2,268
  2,728
  3,220
  3,738
  4,274
  4,820
  5,370
  5,919
  6,462
  6,995
  7,517
  8,027
  8,525
  9,011
  9,489
  9,959
  10,424
  10,888
  11,354
  11,824
  12,302
  12,791
  13,295
Issuance/(repurchase) of shares, $m
  995
  1,497
  2,175
  3,066
  4,205
  5,624
  7,349
  9,403
  11,802
  14,554
  17,664
  21,132
  24,952
  29,117
  33,617
  38,442
  43,580
  49,022
  54,758
  60,782
  67,087
  73,672
  80,534
  87,676
  95,101
  102,814
  110,824
  119,141
  127,776
  136,743
Cash from financing (excl. dividends), $m  
  1,304
  1,949
  2,810
  3,931
  5,348
  7,095
  9,197
  11,671
  14,530
  17,774
  21,402
  25,406
  29,772
  34,487
  39,536
  44,904
  50,575
  56,539
  62,785
  69,307
  76,098
  83,161
  90,493
  98,100
  105,989
  114,168
  122,648
  131,443
  140,567
  150,038
Total cash flow (excl. dividends), $m
  57
  88
  124
  168
  223
  287
  360
  442
  531
  627
  728
  833
  939
  1,046
  1,153
  1,259
  1,363
  1,464
  1,564
  1,661
  1,756
  1,848
  1,940
  2,031
  2,121
  2,212
  2,303
  2,397
  2,492
  2,590
Retained Cash Flow (-), $m
  -995
  -1,497
  -2,175
  -3,066
  -4,205
  -5,624
  -7,349
  -9,403
  -11,802
  -14,554
  -17,664
  -21,132
  -24,952
  -29,117
  -33,617
  -38,442
  -43,580
  -49,022
  -54,758
  -60,782
  -67,087
  -73,672
  -80,534
  -87,676
  -95,101
  -102,814
  -110,824
  -119,141
  -127,776
  -136,743
Prev. year cash balance distribution, $m
  129
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -809
  -1,409
  -2,051
  -2,897
  -3,982
  -5,337
  -6,990
  -8,962
  -11,270
  -13,926
  -16,936
  -20,299
  -24,013
  -28,071
  -32,464
  -37,183
  -42,218
  -47,558
  -53,195
  -59,121
  -65,332
  -71,823
  -78,594
  -85,645
  -92,980
  -100,602
  -108,521
  -116,744
  -125,284
  -134,153
Discount rate, %
  6.50
  6.83
  7.17
  7.52
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
PV of cash for distribution, $m
  -759
  -1,235
  -1,666
  -2,168
  -2,723
  -3,309
  -3,895
  -4,450
  -4,938
  -5,329
  -5,598
  -5,729
  -5,716
  -5,563
  -5,281
  -4,893
  -4,425
  -3,905
  -3,362
  -2,824
  -2,312
  -1,845
  -1,434
  -1,085
  -798
  -570
  -396
  -266
  -173
  -109
Current shareholders' claim on cash, %
  37.3
  14.4
  5.8
  2.4
  1.0
  0.5
  0.2
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes through the ownership and operation of dry bulk carrier vessels worldwide. The company charters its vessels primarily to trading houses consisting of commodities traders; producers; and government-owned entities. The company’s fleet includes 13 Cape size, 8 Panamax, 4 Ultra max, 21 Supra max, 6 Handy max, and 18 Handy size dry bulk carriers with an aggregate carrying capacity of approximately 5,158,000 deadweight tons (dwt). Genco Shipping & Trading Limited was incorporated in 2004 and is based in New York, New York.

FINANCIAL RATIOS  of  Genco Shipping&Trading (GNK)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

GNK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GNK stock intrinsic value calculation we used $209.698 million for the last fiscal year's total revenue generated by Genco Shipping&Trading. The default revenue input number comes from 0001 income statement of Genco Shipping&Trading. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our GNK stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.5%, whose default value for GNK is calculated based on our internal credit rating of Genco Shipping&Trading, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Genco Shipping&Trading.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of GNK stock the variable cost ratio is equal to 237.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for GNK stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.9% for Genco Shipping&Trading.

Corporate tax rate of 27% is the nominal tax rate for Genco Shipping&Trading. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the GNK stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for GNK are equal to 631.7%.

Life of production assets of 18.5 years is the average useful life of capital assets used in Genco Shipping&Trading operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for GNK is equal to 3.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $975.027 million for Genco Shipping&Trading - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 41.547 million for Genco Shipping&Trading is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Genco Shipping&Trading at the current share price and the inputted number of shares is $0.4 billion.

COMPANY NEWS

▶ Genco Shipping: 3Q Earnings Snapshot   [06:22PM  Associated Press]
▶ Genco Shipping & Trading Ltd to Host Earnings Call   [Aug-09-18 06:30AM  ACCESSWIRE]
▶ Genco Shipping: 2Q Earnings Snapshot   [06:34PM  Associated Press]
▶ Why Genco Stock Just Dropped 9%   [Jun-15-18 01:20PM  Motley Fool]
▶ Genco Shipping: 1Q Earnings Snapshot   [05:11AM  Associated Press]
▶ Genco Shipping beats Street 4Q forecasts   [Feb-28-18 03:07PM  Associated Press]
▶ There Is Still Plenty of Strong, Tradable Action   [Jan-16-18 10:49AM  TheStreet.com]
▶ Genco Shipping reports 3Q loss   [Nov-02-17 05:48AM  Associated Press]
▶ Genco Shipping reports 2Q loss   [Aug-07-17 11:14PM  Associated Press]
▶ Genco Shipping reports 2Q loss   [06:10PM  Associated Press]
▶ George Soros' Best-Performing Stocks of 2017 So Far   [May-13-17 10:41AM  Motley Fool]
▶ Could Genco Shipping Stock Double? What You Need to Know   [May-10-17 11:06AM  Motley Fool]
▶ Genco Shipping reports 1Q loss   [May-08-17 06:22PM  Associated Press]

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