Hoegh Story

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HMLP -- USA Stock  

USD 10.62  0.01  0.09%

Today we may see the proof that Dynagas LNG would recover slower from the latest dip as its shares fell 2.28% to Hoegh LNG's 1.78%. As many rational traders are trying to avoid energy space, it makes sense to recap Hoegh LNG Partners a little further and understand how it stands against Dynagas LNG and other similar entities. We are going to focus on some of the competitive aspects of both Hoegh and Dynagas.
Published over a month ago
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Will Dynagas LNG (NYSE:DLNG) and Hoegh LNG (NYSE:HMLP) deliver in September?
By analyzing existing technical indicators between Hoegh 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 Hoegh 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. Hoegh LNG has an asset utilization ratio of 19.12 percent. This suggests that the company is making $0.19 for each dollar of assets. An increasing asset utilization means that Hoegh 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 Hoegh or Dynagas is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Hoegh LNG dividends

A dividend is the distribution of a portion of Hoegh 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. Hoegh 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. Hoegh one year expected dividend income is about $1.17 per share.
As of 25th of September 2020, Preferred Dividends Income Statement Impact is likely to drop to about 12.8 M. In addition to that, Payment of Dividends and Other Cash Distributions is likely to drop to about (34.5 M).
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact13.8 M12.8 M
Payment of Dividends and Other Cash Distributions-32 M-34.5 M
Dividend Yield 0.11  0.11 
Dividends per Basic Common Share 1.76  1.74 
Investing in dividend-paying stocks, such as Hoegh LNG Partners is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Hoegh 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 Hoegh 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 Hoegh LNG's Liquidity

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

Correlation Between Hoegh 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 Hoegh 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 Hoegh 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 Hoegh 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 HMLP and DLNG for more information.

Note

Are you currently holding both Hoegh LNG and Dynagas LNG in your portfolio? Please note if you are using this as a pair-trade strategy between Hoegh 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.

What is the case for Hoegh LNG Investors

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

Lets now check Hoegh LNG revenue. Based on the latest financial disclosure, Hoegh LNG Partners reported 146.05 M of revenue. This is 99.7% lower than that of the Energy sector and 98.76% lower than that of the Oil & Gas Midstream industry. The revenue for all United States stocks is 98.45% higher than that of Hoegh LNG. As for Dynagas LNG we see revenue of 133.97 M, which is 98.86% lower than that of the Oil & Gas Midstream

Sector
9.4 B
HMLP146.05 Million1.5
Sector9.43 Billion97.12
DLNG133.97 Million1.38

Our Hoegh analysis suggests possible reversion in September

Recent kurtosis is at 1.07. Hoegh LNG Partners shows above-average downside volatility for the selected time horizon. We advise investors to inspect Hoegh LNG Partners further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Hoegh LNG future alpha.

When is the right time to buy or sell Hoegh LNG Partners? Buying stocks such as Hoegh LNG isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. To sum up, as of the 19th of August 2020, we see that Hoegh LNG moves indifferently to market moves. The firm is undervalued with below average odds of financial distress within the next 24 months. However, our present 30 days Buy-Hold-Sell recommendation on the firm is Strong Sell.

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 Achuva Shats do not own shares of Hoegh LNG Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

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