Kosmos Story

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KOS -- USA Stock  

USD 3.40  0.05  1.49%

It looks like Earthstone Energy will be up for a correction way faster as its share price whent up 2.97% today to Kosmos Energy's 0.7353%. As many rational traders are trying to avoid energy space, it makes sense to sum up Kosmos Energy a little further and understand how it stands against Earthstone Energy and other similar entities. We are going to discuss some of the competitive aspects of both Kosmos and Earthstone.
Published few days ago
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Will Earthstone (NYSE:ESTE) shadow Kosmos Energy price growth?
By analyzing existing basic indicators between Kosmos Energy and Earthstone, 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 Earthstone with a short position in Kosmos Energy. 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. Kosmos Energy has an asset utilization ratio of 30.58 percent. This connotes that the company is making $0.31 for each dollar of assets. An increasing asset utilization means that Kosmos Energy 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 Kosmos or Dorchester is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Kosmos Energy dividends

A dividend is the distribution of a portion of Kosmos Energy 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. Kosmos Energy 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. Kosmos one year expected dividend income is about $0.08 per share.
As of 02/26/2021, Preferred Dividends Income Statement Impact is likely to grow to about 33 M, while Payment of Dividends and Other Cash Distributions is likely to drop (70.5 M).
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact22 M33 M
Payment of Dividends and Other Cash Distributions-65.3 M-70.5 M
Dividend Yield 0.0288  0.0286 
Dividends per Basic Common Share 0.16  0.16 
Investing in stocks that pay dividends, such as stock of Kosmos Energy, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Kosmos Energy 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 Kosmos Energy. 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 Kosmos Energy's Liquidity

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

Correlation Between Kosmos and Dorchester Minls

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 Kosmos Energy together with similar or unrelated positions with a negative correlation. For example, you can also add Dorchester Minls to your portfolio. If Dorchester Minls is not perfectly correlated to Kosmos Energy 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 Kosmos Energy 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 KOS and DMLP for more information.

Note

Are you currently holding both Kosmos Energy and Dorchester Minls in your portfolio?
Please note if you are using this as a pair-trade strategy between Kosmos Energy and Dorchester Minls, 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 look at Kosmos

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 Kosmos Energy revenue. Based on the latest financial disclosure, Kosmos Energy reported 979.57 M of revenue. This is 98.01% lower than that of the Energy sector and 70.22% lower than that of the Oil & Gas E&P industry. The revenue for all United States stocks is 89.62% higher than that of the firm. As for Earthstone Energy we see revenue of 174.64 M, which is 94.69% lower than that of the Oil & Gas E&P

Kosmos979.57 Million
Sector3.29 Billion
Earthstone174.64 Million
979.6 M
Kosmos
3.3 B
Sector
Earthstone

Kosmos showing record of lower volatility

Latest market risk adjusted performance is at -1.86. Kosmos Energy is displaying above-average volatility over the selected time horizon. Investors should scrutinize Kosmos Energy independently to ensure intended market timing strategies are aligned with expectations about Kosmos Energy volatility.

Our Takeaway on Kosmos Energy Investment

While some firms under the oil & gas e&p industry are still a bit expensive, Kosmos Energy may offer a potential longer-term growth to retail investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to quit some or all of your Kosmos Energy holdings as it seems the potential growth was already 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 Kosmos Energy.

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 Ellen Johnson do not own shares of Kosmos Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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