Gulf Island Story

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GIFI -- USA Stock  

USD 3.94  0.04  1.03%

Given the investment horizon of 60 days Gulf Island is expected to generate 3.19 times more return on investment than the market. However, the company is 3.19 times more volatile than its market benchmark. It trades about 0.08 of its potential returns per unit of risk. The DOW is currently generating roughly 0.17 per unit of risk. While many risk-averse stockholders are getting carried away by overanalyzing energy space, it is reasonable to concentrate on Gulf Island Fab. We will cover the possibilities of Gulf Island's current volatility to continue through April. Gulf Island's low volatility may still impact the value of the stock as we estimate it as currently fairly valued. The real value, based on our analysis, is getting close to 3.70 per share.
Published over two weeks ago
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Are you still shorting Gulf Island?
Gulf Island Fab currently holds 12.32 M in liabilities with Debt to Equity (D/E) ratio of 0.09, which may suggest Gulf Island is not taking enough advantage from borrowing. The entity has a current ratio of 1.51, which is within standard range for the sector.
Volatility is a rate at which the price of Gulf Island 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 Gulf Island may increase or decrease. In other words, similar to Gulf Island's beta indicator, it measures the risk of Gulf Island and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gulf Island 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 Gulf Island's Liquidity

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

How Gulf Island utilizes its cash?

To perform a cash flow analysis of Gulf Island, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Gulf Island is receiving and how much cash it distributes out in a given period. The Gulf Island cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Gulf Island 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 (19.01 Million)

Gulf Island Volatility Drivers

Gulf Island unsystematic risk is unique to Gulf Island Fab 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 Gulf Island you can also buy Franks International NV. You can also mitigate this risk by investing in the oil & gas equipment & services 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 Gulf Island 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 Gulf Island income statement and balance sheet. Here are more details about Gulf Island volatility.