GOGL - Golden Ocean Group: Excellent Fleet Strong Financials And Attractive Yields
2024-03-22 12:44:02 ET
Summary
- Golden Ocean Group owns 52 Capesize (19 Newcastlemax and 33 regular Capes) vessels with an average age of 8Y and 31 Panamax with an average age of 6Y.
- GOGL has $116 million in cash, $1,260 million in long-term debt, and $1,460 million in total debt. The capital structure is 76.5% total debt/equity and 44.9% total liabilities/total assets.
- The company announced a $0.30/share cash dividend for 4Q23. The TTM dividend yield is 4.68%. With rising TCE rates, I expect dividends to grow higher.
- GOGL offers a balance between price vs. value, leverage, and fleet specifications. My verdict is a buy rating.
Introduction
The dry bulk segment offers excellent risk-reward at the present stage of the shipping cycle-especially for Capesize vessels. In my opinion, we are in the first half of the cycle's expansion phase, so the odds are skewed in investors' favor. There are a few shipping stocks to bet on that theme. I have already presented two: Himalaya Shipping ( HSHP ) and Star Bulk ( SBLK ). Today's article dissects Golden Ocean Group ( GOGL ), the largest Capezise/Newcastlemax owner....
Golden Ocean Group: Excellent Fleet, Strong Financials And Attractive Yields