Kosmos Energy has roughly 111.33
M in cash with 319.33
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.25.
We provide investment recommendation to complement the last-minute
expert consensus on Kosmos Energy. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Investing in Kosmos Energy, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Kosmos Energy along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Kosmos Energy's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Kosmos Energy. Your research has to be compared to or analyzed against Kosmos Energy's peers to derive any actionable benefits. When done correctly, Kosmos Energy's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Kosmos Energy.
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. Financial leverage can amplify the potential profits to Kosmos Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Kosmos Energy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Kosmos Energy's total debt and its cash.
Kosmos Energy Gross Profit
Kosmos Energy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Kosmos Energy 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 Kosmos Energy Gross Profit growth over the last 10 years. Please check Kosmos Energy's
gross profit and other
fundamental indicators for more details.
Kosmos Energy Correlation with Peers
Investors in Kosmos can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Kosmos Energy. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Kosmos Energy and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Kosmos is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Kosmos for more details
A Deeper look at Kosmos
Kosmos Energy appears to be moderately volatile, given 3 months investment horizon.
Kosmos Energy has Sharpe Ratio of 0.21, which conveys that the firm had 0.21% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. By analyzing
Kosmos Energy technical indicators you can presently evaluate if the expected return of 0.91% is justified by implied risk. Please exercise Kosmos Energy's Mean Deviation of 3.19,
downside deviation of 3.9, and Risk Adjusted Performance of 0.245 to check out if our risk estimates are consistent with your expectations.
Another 3 percent spike for Kosmos Energy
Downside variance is down to 15.18. It may connote a possible volatility fall.
As of the 9th of May, Kosmos Energy secures the Risk Adjusted Performance of 0.245,
downside deviation of 3.9, and Mean Deviation of 3.19. Kosmos Energy
technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate data for nineteen
technical drivers for Kosmos Energy, which can be compared to its peers in the industry. Please verify
Kosmos Energy information ratio and
downside variance to decide if Kosmos Energy is priced some-what accurately, providing market reflects its recent price of 7.38 per share. Given that Kosmos Energy has
jensen alpha of 0.8353, we recommend you to check Kosmos Energy's last-minute market performance to make sure the company can sustain itself at a future point.
Our Bottom Line On Kosmos Energy
While few other entities within the oil & gas e&p industry are still a little expensive, even after the recent corrections, Kosmos Energy may offer a potential longer-term growth to retail investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Kosmos nor short 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 Kosmos Energy.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Kosmos Energy. Please refer to our
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