Golar Story

GMLP -- USA Stock

USD 3.41 0.01 0.29%

Macroaxis Story

It looks like Dynagas LNG will continue to recover much faster as its share price surged up 1.20% today to Golar LNG's 2.952%. As many of us are excited about energy space, we will review both, Golar LNG and Dynagas LNG as a potential short-term opportunity. We are going to focus on some of the competitive aspects of both Golar and Dynagas.

Published over a month ago

View all stories for Golar LNG | View All Stories

Will Dynagas LNG insiders switch to Golar (NASDAQ:GMLP)?

By analyzing existing basic indicators between Golar LNG and Dynagas, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Dynagas with a short position in Golar LNG. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. 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.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Golar or Dynagas is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Golar LNG 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 Reported	Projected for 2021
Preferred Dividends Income Statement Impact	14 M	14.6 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.

How important is Golar LNG's Liquidity

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

Correlation Between Golar and Dynagas LNG Partners

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Golar LNG together with similar or unrelated positions with a negative correlation. For example, you can also add Dynagas LNG to your portfolio. If Dynagas LNG is not perfectly correlated to Golar LNG it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Golar LNG for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between GMLP and DLNG for more information.

Note

Are you currently holding both Golar LNG and Dynagas LNG in your portfolio? Please note if you are using this as a pair-trade strategy between Golar LNG and Dynagas LNG, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Golar LNG revenue. Based on the latest financial disclosure, Golar LNG Partners reported 294.31 M of revenue. This is 99.4% lower than that of the Energy sector and 97.49% lower than that of the Oil & Gas Midstream industry. The revenue for all United States stocks is 96.88% higher than that of Golar LNG. As for Dynagas LNG we see revenue of 137.05 M, which is 98.83% lower than that of the Oil & Gas Midstream

Sector

9.4 B

GMLP	294.31 Million	2.98
Sector	9.43 Billion	95.63
DLNG	137.05 Million	1.39

Will Golar LNG recent roll up continue?

Golar LNG recent kurtosis upswings over 2.82. Golar LNG Partners currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.06. 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.

Our Conclusion on Golar LNG

Although some other companies within the oil & gas midstream industry are still a little expensive, even after the recent corrections, Golar LNG may offer a potential longer-term growth to insiders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither trade new shares of Golar nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Golar LNG.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile

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 Golar LNG Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC