Diamond Story

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DSSI -- USA Stock  

USD 7.43  0.09  1.23%

Diamond S is currently does not generate positive expected returns and assumes 3.4049% risk (volatility on return distribution) over the 90 days horizon. As many conservative investors are still indifferent towards current market risk, it is prudent, from our point of view, to concentrate on Diamond S's current volatility. What exactly are Diamond S shareholders getting in December? Diamond S's seemingly stabilizing volatility may still impact the value of the stock as we estimate Diamond S as currently undervalued. The real value, based on our calculations, is getting close to 8.18 per share.
Published over a week ago
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Is Diamond S (NYSE:DSSI) rise viable given current volatility?
This firm currently holds 768.75 M in liabilities with Debt to Equity (D/E) ratio of 0.59, which is about average as compared to similar companies. The company has a current ratio of 1.28, suggesting that it is not liquid enough and may have problems paying out its financial obligations when due.
Volatility is a rate at which the price of Diamond S or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Diamond S may increase or decrease. In other words, similar to Diamond's beta indicator, it measures the risk of Diamond S and helps estimate the fluctuations that may happen in a short period of time. So if prices of Diamond S fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Diamond S's Liquidity

Diamond S financial leverage refers to using borrowed capital as a funding source to finance Diamond S Shipping ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Diamond S financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Diamond S's total debt and its cash.

How Diamond utilizes its cash?

To perform a cash flow analysis of Diamond S, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Diamond S is receiving and how much cash it distributes out in a given period. The Diamond S cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Diamond S Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 63.35 Million

Diamond S Volatility Drivers

Diamond S unsystematic risk is unique to Diamond S Shipping and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Diamond S you can also buy Antero Midstream. You can also mitigate this risk by investing in the oil & gas midstream sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Diamond S important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Diamond S income statement and balance sheet. Here are more details about Diamond volatility.
Click cells to compare fundamentals   

Payment of 447 shares by Fogarty Michael G of Diamond S subject to Rule 16b-3

Legal trades by Diamond S insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Diamond insider trading alert for payment of common stock by Fogarty Michael G, Former Senior VP - Commercial, on 18th of November 2020. This event was filed by Diamond S Shipping Inc with SEC on 2020-11-18. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Diamond

Diamond S Shipping reported the previous year's revenue of 721.11 M. Net Income was 90.98 M with profit before overhead, payroll, taxes, and interest of 195.45 M.
 2016 2018 2019 2020 (projected)
Interest Expense31.84 M33.75 M46.77 M45.37 M
Gross Profit157.45 M103.86 M195.45 M175.17 M

Can Diamond S build up on the current rise?

The total risk alpha is down to -0.78 as of today. Diamond S Shipping exhibits very low volatility with skewness of 0.82 and kurtosis of 2.74. However, we advise investors to further study Diamond S Shipping technical indicators to make sure all market info is available and is reliable.

Our Final Take On Diamond S

While some firms in the oil & gas midstream industry are either recovering or due for a correction, Diamond may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor trade any shares of Diamond S at this time. The Diamond S Shipping risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Diamond S.

About Contributor

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 Gabriel Shpitalnik do not own shares of Diamond S Shipping. Please refer to our Terms of Use for any information regarding our disclosure principles.

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