Golar Story

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GMLP -- USA Stock  

USD 3.41  0.01  0.29%

Golar LNG Invested Capital Average is very stable at the moment as compared to the past year. Golar LNG reported last year Invested Capital Average of 3.01 Billion. As of 29th of November 2020, Market Capitalization is likely to grow to about 873.8 M, while Dividend Yield is likely to drop 0.16. If you have been following Golar you may be considering obtaining. Let's check if healthy basic indicators will continue to push the price to roll up for Golar LNG's insiders. Golar LNG Partners current chance of bankruptcy is under 35 percent. Will insiders continue to be optimistic, or should we expect a sell-off?
Published over a month ago
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Are insiders happy with Golar LNG (NASDAQ:GMLP) basic indicators?
Golar LNG has performance score of 3 on a scale of 0 to 100. The company retains a Market Volatility (i.e. Beta) of 0.0828, which attests to not very significant fluctuations relative to the market. Let's try to break down what Golar's beta means in this case. As returns on the market increase, Golar LNG returns are expected to increase less than the market. However, during the bear market, the loss on holding Golar LNG will be expected to be smaller as well. Although it is extremely important to respect Golar LNG Partners current price history, it is better to be realistic regarding the information on equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Golar LNG Partners technical indicators, you can presently evaluate if the expected return of 0.17% will be sustainable into the future. Golar LNG Partners right now retains a risk of 3.27%. Please check out Golar LNG downside variance, and the relationship between the sortino ratio and accumulation distribution to decide if Golar LNG will be following its current trending patterns.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Golar LNG income statement, its balance sheet, and the statement of cash flows. Potential Golar LNG investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Golar LNG investors may use each financial statement separately, they are all related. The changes in Golar LNG's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Golar LNG's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Golar LNG fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Golar LNG performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Golar LNG shares is the value that is considered the true value of the share. If the intrinsic value Golar is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Golar LNG. Please read more on our fundamental analysis page.

What is Golar Asset Breakdown?

Golar LNG Partners reports assets on its Balance Sheet. It represents the amount of Golar resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Golar volatility, please check the breakdown of all its fundamentals

Are Golar LNG Earnings Expected to grow?

The future earnings power of Golar LNG involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Golar LNG factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Golar LNG stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Golar expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Golar LNG earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Golar LNG dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Golar one year expected dividend income is about $0.69 per share.
Golar LNG Preferred Dividends Income Statement Impact is very stable at the moment as compared to the past year. Golar LNG reported last year Preferred Dividends Income Statement Impact of 13.98 Million. As of 19th of January 2021, Dividends per Basic Common Share is likely to grow to 2.09, while Payment of Dividends and Other Cash Distributions is likely to drop (122.9 M).
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact14 M14.6 M
Payment of Dividends and Other Cash Distributions-113.9 M-122.9 M
Dividend Yield 0.21  0.17 
Dividends per Basic Common Share 1.86  2.09 
Investing in dividend-paying stocks, such as Golar LNG Partners is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Golar LNG must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Golar LNG. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Golar LNG Gross Profit

Golar LNG Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Golar LNG 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 Golar LNG Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

A Deeper Perspective

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Golar LNG is not uncomon. Institutional investor usually refers to an organization that invests money in Golar LNG on behalf of clients or other money managers. Buying and selling of large positions of Golar LNG stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Golar LNG stock. Let's take a look at how the ownership of Golar is distributed among investors.

Ownership Allocation

Golar LNG secures a total of 69.3 Million outstanding shares. Golar LNG secures significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
38.38%
Insiders
30.16%
Institutions
31.46%
Retail Investors38.38
Insiders30.16
Institutions31.46

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Golar LNG has an asset utilization ratio of 13.11 percent. This suggests that the company is making $0.13 for each dollar of assets. An increasing asset utilization means that Golar LNG Partners is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
2.1 B
Current Assets154.45 Million6.79
Assets Non Current2.05 Billion90.4
Goodwill63.7 Million2.8

Our perspective of the recent Golar LNG roll up

Recent Total Risk Alpha is up to -0.05. Price may decline again. Golar LNG Partners currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.14. However, we do advice investors to further question Golar LNG Partners expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on Golar LNG Investment

Although many of the other players under the oil & gas midstream industry are still a bit expensive, Golar LNG may offer a potential longer-term growth to insiders. To conclude, as of the 29th of November 2020, we believe that Golar LNG is currently undervalued with below average probability of financial unrest in the next two years. Our actual 30 days buy-hold-sell advice on the firm is Cautious Hold.

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

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