Section 1: Company Fundamentals

1.1 Summary Table

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics

GOGL over the last five years has been in an upward trending momentum in its revenues and gross profits, the primary contributor being the increased revenue growth in both Time Charter and Voyage Charter segments. GOGL has grown its revenues and gross margin at an impressive 5-year CAGR of 36.18% and 64.74% respectively. Furthermore, the higher CAGR for gross profit means increased efficiency in managing the cost of revenues by the company over the last five years. Another example of improved efficiency is increased profitability margins at each level of the operational process and increased return to shareholders seen through increased ROE on a YoY basis. Finally, even though GOGL has leveraged its balance sheet compared to the industry median, still the company is taking successful efforts to control the Debt/Equity ratio, which can be evident from the downward sloping Debt/Equity ratio in the previous five quarters.

1.4 Consistent dividend payments with impressive dividend yield:

GOGL has had a history of paying dividends for 22 years, as the first dividend was paid on 11^th February 2000. GOGL has an impressive dividend yield of 28.24% and at an annual dividend of USD 2.40 per share. The dividend is paid every three months and the last ex-dividend date was September 6, 2022, with the dividend payment date being September 14, 2022. GOGL has a dividend payout ratio of 80.12% on an LTM basis, making the stock a good opportunity for regular income preferring investors.

Section 2: Golden Ocean Group Ltd. (“Buy” at the closing market price of USD 8.50, as of September 19, 2022)

2.1 Company Details

2.2 Valuation and Technical Guidance

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 19 September 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

Disclaimer

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