Contango Oil
financial leverage refers to using borrowed capital as a funding source to finance Contango Oil Gas ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Contango Oil 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 Contango Oil'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 Contango Oil'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 Contango Oil's total debt and its cash.
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 Contango Oil is not uncomon. Many companies such as Contango Oil have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Contango is distributed among investors.
Ownership Allocation
Contango Oil holds a total of two hundred one million one hundred eighty thousand
outstanding shares. Contango Oil Gas retains 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. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Retail Investors47.21% | Insiders26.72% | Institutions26.07% |
| Retail Investors | 47.21 |
| Insiders | 26.72 |
| Institutions | 26.07 |
| 2018 | 2019 | 2020 | 2021 (projected) |
Revenues USD | 77.09 M | 76.51 M | 112.92 M | 115.34 M | Revenues | 77.09 M | 76.51 M | 112.92 M | 115.34 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Contango Oil has an asset utilization ratio of 393.7 percent. This indicates that the company is making $3.94 for each dollar of assets. An increasing asset utilization means that Contango Oil Gas is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets50 M | Assets Non Current126.7 M | |
| Current Assets | 50.04 Million | 28.25 |
| Assets Non Current | 126.71 Million | 71.53 |
| Tax Assets | 391,642 | 0.22 |
Contango Oil has 54% chance to stay above $4.01 in the coming weeks
Mean deviation is down to 2.51. It may indicate a possible volatility dip. Contango Oil Gas currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.16. However, we advise investors to further question Contango Oil Gas expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Contango Oil's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Contango Oil's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Contango Oil Implied Volatility
Contango Oil's implied volatility exposes the market's sentiment of Contango Oil Gas stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Contango Oil's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Contango Oil stock will not fluctuate a lot when Contango Oil's options are near their expiration.
Our Final Take On Contango Oil
Although other entities within the oil & gas e&p industry are still a little expensive, even after the recent corrections, Contango Oil may offer a potential longer-term growth to shareholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Contango Oil at this time. The Contango Oil Gas risk-reward trade off is not appealing enough to do any trading. 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 Contango Oil.
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Contango Oil Gas. Please refer to our
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