Nordic Story

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NAT -- USA Stock  

USD 3.10  0.10  3.12%

While some baby boomers are getting worried about industrials space, it is reasonable to review Nordic American Tanker. We will try to explain if it is still possible for Nordic American to generate above-average margins. Is the firm valuation sustainable? Here I will cover a perspective on valuation of Nordic to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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Is Nordic American (NYSE:NAT) ready for a correction?
The company has 356.71 M in debt with debt to equity (D/E) ratio of 0.6, which is OK given its current industry classification. Nordic American Tanker has a current ratio of 2.46, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
We provide investment recommendation to complement the last-minute expert consensus on Nordic American Tanker. 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.
We determine the current worth of Nordic American Tanker using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Nordic American Tanker based exclusively on its fundamental and basic technical indicators. By analyzing Nordic American's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Nordic American's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Nordic American. We calculate exposure to Nordic American's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Nordic American's related companies.

Nordic American Tanker Investment Alerts

Nordic investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Nordic American Tanker performance across your portfolios.Please check all investment alerts for Nordic

Nordic American Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Nordic value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Nordic American competition to find correlations between indicators driving the intrinsic value of Nordic.

How Nordic utilizes its cash?

To perform a cash flow analysis of Nordic American, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Nordic American is receiving and how much cash it distributes out in a given period. The Nordic American cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Nordic American Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Nordic American reported Net Cash Flow from Operations of 60.79 Million in 2020

Breaking down Nordic American Indicators

The newest price gain of Nordic American Tanker may encourage private investors to take a closer look at the firm as it is trading at a share price of 3.88 on 16,410,715 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in April. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.18. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Nordic American Tanker partners.
 2018 2019 2020 2021 (projected)
Interest Expense34.55 M38.39 M44.15 M47.63 M
Gross Profit43.59 M109.42 M125.83 M113.61 M

Margins Breakdown

Nordic profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Nordic American itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Nordic American profit margins.
EBITDA Margin0.28
Gross Margin0.29
Profit Margin(0.0409)

Nordic American Average Equity is decreasing over the last 8 years. The newest value of Nordic American Average Equity is 630,698,921. Also, Nordic American Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.

Another 3 percent gain for Nordic American

Coefficient of variation is down to 5647.46. It may call for a possible volatility drop.
As of the 26th of March, Nordic American secures the Mean Deviation of 2.6, risk adjusted performance of 0.0227, and Downside Deviation of 3.01. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Nordic American Tanker, as well as the relationship between them. 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 analyze nineteen technical drivers for Nordic American, which can be compared to its peers in the industry. Please verify Nordic American Tanker information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if Nordic American Tanker is priced some-what accurately, providing market reflects its recent price of 3.88 per share. Given that Nordic American Tanker has jensen alpha of 0.0794, we recommend you to check Nordic American's last-minute market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas other entities within the marine shipping industry are still a little expensive, even after the recent corrections, Nordic American may offer a potential longer-term growth to private investors. To conclude, as of the 26th of March 2021, our up-to-date 30 days advice on the firm is Strong Sell. We believe Nordic American is currently overvalued with below average probability of distress for the next two years.

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 Raphi Shpitalnik do not own shares of Nordic American Tanker. Please refer to our Terms of Use for any information regarding our disclosure principles.

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