Diana Story

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DSX -- USA Stock  

USD 1.40  0.13  8.50%

Diana Shipping is scheduled to announce its earnings today. The next earnings report is expected on the 7th of December 2020. Diana Shipping EBITDA Margin is fairly stable at the moment as compared to the past year. Diana Shipping reported EBITDA Margin of 0.31 in 2019. Enterprise Value over EBIT is likely to grow to 48.55 in 2020, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 55 M in 2020. As many passive investors are finally getting excited about industrials space, Diana Shipping could be a good starting point.
Published over a month ago
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Thinking to drop Diana (NYSE:DSX) based on its current debt commitments?
The company has 465.44 M in debt with debt to equity (D/E) ratio of 1.02, which is OK given its current industry classification. We provide trade advice to complement the prevailing expert consensus on Diana Shipping. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Diana Shipping financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Diana Shipping, including all of Diana Shipping's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Diana Shipping assets, the company is considered highly leveraged. Understanding the composition and structure of overall Diana Shipping debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Diana Shipping on a daily bases if you are holding a position in it. Diana Shipping is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Diana Shipping stock to be traded above the $1 level to remain listed. If Diana Shipping stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Understanding Diana Total Debt

Diana Shipping liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Diana Shipping has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Diana Shipping balance sheet include debt obligations and money owed to different Diana Shipping vendors, workers, and loan providers. Below is the chart of Diana main long-term debt accounts currently reported on its balance sheet.
You can use Diana Shipping financial leverage analysis tool to get a better grip on understanding its financial position

How important is Diana Shipping's Liquidity

Diana Shipping financial leverage refers to using borrowed capital as a funding source to finance Diana Shipping ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Diana Shipping 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 Diana Shipping's total debt and its cash.

Breaking down Diana Shipping Indicators

Diana Shipping reported the last year's revenue of 204.19 M. Reported Net Loss for the year was (122.1 M) with profit before taxes, overhead, and interest of 116.59 M.

Asset Breakdown

Total Assets1.22 Billion
Current Assets177.19 Million
Assets Non Current1.25 Billion

Will Diana price slide impact its balance sheet?

The treynor ratio is down to -8.96 as of today. Diana Shipping exhibits very low volatility with skewness of 0.65 and kurtosis of 3.74. However, we advise investors to further study Diana Shipping technical indicators to make sure all market info is available and is reliable.

Our Bottom Line On Diana Shipping

While many other companies in the marine shipping industry are either recovering or due for a correction, Diana may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Diana valuation and our trade advice on Diana Shipping is due to the recent market swings and your selection of investing horizon. 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 Diana Shipping.

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 Vlad Skutelnik do not own shares of Diana Shipping. Please refer to our Terms of Use for any information regarding our disclosure principles.

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