📊 GNK Key Takeaways
Is Genco Shipping & Trading Ltd. (GNK) a Good Investment?
Genco has a fortress balance sheet with exceptional liquidity (2.98x current ratio) and conservative leverage (0.36x debt/equity), but fundamentals are deteriorating sharply with 19.1% revenue decline and 105.7% earnings collapse. While positive free cash flow generation ($15.3M, 13.4% margin) provides a safety net, poor capital returns (1.1% ROE, 0.7% ROA) and cyclical shipping market headwinds create significant uncertainty on recovery trajectory.
Balance sheet strength (low leverage and strong liquidity) and positive free cash flow despite a net loss provide resilience in a cyclical shipping downturn. However, revenue declined sharply and margins are thin, with weak interest coverage indicating limited cushion until industry rates improve. Near-term fundamentals hinge on restoring operating profitability while maintaining cash generation.
Why Buy Genco Shipping & Trading Ltd. Stock? GNK Key Strengths
- Fortress balance sheet with low leverage (0.36x Debt/Equity) and $885.4M equity base
- Exceptional liquidity: 2.98x current ratio and 2.41x quick ratio provide substantial financial flexibility
- Positive free cash flow generation with strong 13.4% FCF margin despite operational pressures
- Adequate interest coverage at 3.3x and minimal recent capital expenditure requirements
- Low leverage (0.21x D/E) and robust liquidity (2.39x current ratio)
- Positive free cash flow (8.4% margin) despite net loss
- Modest capex supports cash retention and flexibility
GNK Stock Risks: Genco Shipping & Trading Ltd. Investment Risks
- Severe revenue contraction of 19.1% YoY signals prolonged shipping market downturn
- Catastrophic earnings deterioration with 105.7% EPS decline indicates profitability crisis
- Abysmal capital returns (1.1% ROE, 0.7% ROA) suggest structural challenges in asset utilization
- Operating cash flow of $15.7M on $114.4M revenue shows margin compression and efficiency concerns
- Cyclical industry exposure with unclear inflection point for recovery
- Revenue down 19% YoY with negative net income and compressed margins
- Weak interest coverage (1.8x) limits downside protection
- Cyclical charter-rate volatility may further pressure utilization and earnings
Key Metrics to Watch
- Quarterly revenue trend—stabilization required to validate recovery narrative
- Operating margin expansion—current 11.6% needs improvement with revenue recovery
- Return on equity trajectory—1.1% ROE is unacceptable and must improve sustainably
- Debt/equity ratio and interest coverage—monitor for deterioration if downturn persists
- Interest coverage
- Free cash flow margin
Genco Shipping & Trading Ltd. (GNK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.98x current ratio provides a solid financial cushion.
GNK Profit Margin, ROE & Profitability Analysis
GNK vs Transportation Sector: How Genco Shipping & Trading Ltd. Compares
How Genco Shipping & Trading Ltd. compares to Transportation sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Genco Shipping & Trading Ltd. Stock Overvalued? GNK Valuation Analysis 2026
Based on fundamental analysis, Genco Shipping & Trading Ltd. has mixed fundamental signals relative to the Transportation sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Genco Shipping & Trading Ltd. Balance Sheet: GNK Debt, Cash & Liquidity
GNK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Genco Shipping & Trading Ltd.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.30 indicates the company is currently unprofitable.
GNK Revenue Growth, EPS Growth & YoY Performance
GNK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $71.3M | $9.3M | $0.21 |
| Q3 2025 | $79.9M | -$1.1M | $-0.02 |
| Q2 2025 | $80.9M | -$6.8M | $-0.16 |
| Q1 2025 | $71.3M | -$11.9M | $-0.28 |
| Q3 2024 | $83.4M | -$17.8M | $-0.42 |
| Q2 2024 | $90.6M | $11.6M | $0.27 |
| Q1 2024 | $94.4M | $2.6M | $0.06 |
| Q3 2023 | $83.4M | -$17.8M | $-0.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Genco Shipping & Trading Ltd. Dividends, Buybacks & Capital Allocation
GNK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Genco Shipping & Trading Ltd. (CIK: 0001326200)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GNK
What is the AI rating for GNK?
Genco Shipping & Trading Ltd. (GNK) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GNK's key strengths?
Claude: Fortress balance sheet with low leverage (0.36x Debt/Equity) and $885.4M equity base. Exceptional liquidity: 2.98x current ratio and 2.41x quick ratio provide substantial financial flexibility. ChatGPT: Low leverage (0.21x D/E) and robust liquidity (2.39x current ratio). Positive free cash flow (8.4% margin) despite net loss.
What are the risks of investing in GNK?
Claude: Severe revenue contraction of 19.1% YoY signals prolonged shipping market downturn. Catastrophic earnings deterioration with 105.7% EPS decline indicates profitability crisis. ChatGPT: Revenue down 19% YoY with negative net income and compressed margins. Weak interest coverage (1.8x) limits downside protection.
What is GNK's revenue and growth?
Genco Shipping & Trading Ltd. reported revenue of $114.4M.
Does GNK pay dividends?
Genco Shipping & Trading Ltd. pays dividends, with $22.6M distributed to shareholders in the trailing twelve months.
Where can I find GNK SEC filings?
Official SEC filings for Genco Shipping & Trading Ltd. (CIK: 0001326200) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GNK's EPS?
Genco Shipping & Trading Ltd. has a diluted EPS of $0.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GNK a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Genco Shipping & Trading Ltd. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GNK stock overvalued or undervalued?
Valuation metrics for GNK: ROE of 1.1% (sector avg: 18%), net margin of 8.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy GNK stock in 2026?
Our dual AI analysis gives Genco Shipping & Trading Ltd. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GNK's free cash flow?
Genco Shipping & Trading Ltd.'s operating cash flow is $15.7M, with capital expenditures of $405.0K. FCF margin is 13.4%.
How does GNK compare to other Transportation stocks?
Vs Transportation sector averages: Net margin 8.1% (avg: 10%), ROE 1.1% (avg: 18%), current ratio 2.98 (avg: 1).