Capital Product Partners currently holds 1.21
B in liabilities with Debt to Equity (D/E) ratio of 2.17, implying Capital Product greatly relies on financing operations through barrowing. The entity has a current ratio of 0.77, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Capital Product until it has trouble settling it off, either with new capital or with free cash flow. So, Capital Product's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Capital Product Partners sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Capital to invest in growth at high rates of return. When we think about Capital Product's use of debt, we should always consider it together with cash and equity.
Our trade advice tool can cross-verify current
analyst consensus on Capital Product Partners and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Capital Product Partners using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Capital Product Partners based exclusively on its
fundamental and basic
technical indicators. By analyzing Capital Product's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Capital Product's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Capital Product. We calculate exposure to Capital Product's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Capital Product's related companies.
Capital Product Partners Investment Alerts
Capital investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Capital Product Partners performance across your portfolios.Please check all
investment alerts for Capital
Capital Product Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Capital value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Capital Product competition to find
correlations between indicators driving the intrinsic value of Capital.
Capital Product Gross Profit
Capital Product Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Capital Product previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Capital Product Gross Profit growth over the last 10 years. Please check Capital Product's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Capital Product Partners
Capital Product Partners price decline over the last few months could raise concerns from insiders as the firm is trading at a share price of
13.80 on
81,904 in volume. The company executives were not very successful in positioning the firm resources to exploit
market volatility in
January. However, diversifying your holdings with Capital Product Partners or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.52. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Capital Product has a good chance to finish above USD14.08 in 2 months
Recent kurtosis is at 0.39.
As of the 2nd of February, Capital Product shows the
mean deviation of 1.25, and Risk Adjusted Performance of
(0.015932). Capital Product Partners
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate nineteen
technical drivers for Capital Product Partners, which can be compared to its rivals. Please confirm
Capital Product Partners coefficient of variation,
treynor ratio, as well as the
relationship between the Treynor Ratio and
semi variance to decide if Capital Product Partners is priced correctly, providing market reflects its regular price of 13.8 per share. Given that Capital Product has
jensen alpha of
(0.06), we suggest you to validate Capital Product Partners's prevailing market performance to make sure the company can sustain itself at a future point.
Our Conclusion on Capital Product
Although some other companies in the marine shipping industry are either recovering or due for a correction, Capital Product may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 2nd of February 2023, our analysis shows that Capital Product slowly supersedes the market. The firm is
undervalued and projects
close to average probability of distress for the next 2 years. Our primary 90 days buy-hold-sell advice on the firm is
Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Capital Product Partners. Please refer to our
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