Stealthgas Stock Story


USD 2.57  0.09  3.38%   

Stealthgas Market Capitalization is relatively stable at the moment as compared to the past year. Stealthgas reported last year Market Capitalization of 79.88 Million. As of 05/26/2022, Tangible Asset Value is likely to grow to about 945.3 M, while Working Capital is likely to drop (7.2 M). In this article, we will sum up Stealthgas as a potential position in addition to your existing holdings. We will discuss why it could be a game-changer for Stealthgas retail investors.
Published over two months ago
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Our projection for Stealthgas (NASDAQ:GASS) in June

The company has a beta of 0.5767. Let's try to break down what Stealthgas's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Stealthgas will likely underperform. The beta indicator helps investors understand whether Stealthgas moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Stealthgas deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Stealthgas. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Stealthgas

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Stealthgas' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Stealthgas in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Stealthgas. Your research has to be compared to or analyzed against Stealthgas' peers to derive any actionable benefits. When done correctly, Stealthgas' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Stealthgas.

How important is Stealthgas's Liquidity

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

How does Stealthgas utilize its cash?

To perform a cash flow analysis of Stealthgas, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Stealthgas is receiving and how much cash it distributes out in a given period. The Stealthgas cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Stealthgas Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Stealthgas reported last year Net Cash Flow from Operations of 41.04 Million

Another Deeper Perspective

The latest spike in Stealthgas short term price appreciation may raise some interest from retail investors. The stock closed today at a share price of 2.44 on slow start in trading volume. The company executives have successfully maneuvered the company at convenient times to take advantage of all market conditions in April. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.35. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Stealthgas partners.

Margin Breakdown

EBITDA Margin0.1
Gross Margin0.42
Profit Margin(0.24)

Will Stealthgas retail investors exit after the fall?

Sortino ratio is down to 0.11. It may connote a possible volatility fall. Stealthgas exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Stealthgas individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Stealthgas future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Stealthgas' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Stealthgas' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Stealthgas Implied Volatility

Stealthgas' implied volatility exposes the market's sentiment of Stealthgas stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Stealthgas' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Stealthgas stock will not fluctuate a lot when Stealthgas' options are near their expiration.

Our Final Takeaway

While some other entities under the marine shipping industry are still a bit expensive, Stealthgas may offer a potential longer-term growth to retail investors. To conclude, as of the 26th of May 2022, we believe Stealthgas is currently undervalued. It follows the market closely and projects below average probability of distress in the next two years. Our final 90 days buy-hold-sell recommendation on the enterprise is Strong Hold.

Editorial Staff

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 Raphi Shpitalnik do not own shares of Stealthgas. Please refer to our Terms of Use for any information regarding our disclosure principles.

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