By analyzing existing basic indicators between Nordic American and International, 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 International with a short position in Nordic American. 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. Nordic American has an asset utilization ratio of 5.42 percent. This implies that the company is making $0.0542 for each dollar of assets. An increasing asset utilization means that Nordic American Tanker 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 entities, such as Nordic or Danaos is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Nordic American dividends
A dividend is the distribution of a portion of Nordic American 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. Nordic American 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. Nordic one year expected dividend income is about USD0.24 per share.
At this time, Nordic American's
Dividend Yield is comparatively stable compared to the past year.
Dividend Payout Ratio is likely to gain to 0.96 in 2024, whereas
Dividends Paid is likely to drop slightly above 62.7
M in 2024.
Investing in dividend-paying stocks, such as Nordic American Tankers is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Nordic American 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 Nordic American. 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 Nordic American's Liquidity
Nordic American
financial leverage refers to using borrowed capital as a funding source to finance Nordic American Tankers ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nordic American 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 Nordic American'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 Nordic American'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 Nordic American's total debt and its cash.
Correlation Between Nordic and Danaos
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 Nordic American together with similar or unrelated positions with a negative correlation. For example, you can also add Danaos to your portfolio. If Danaos is not perfectly correlated to Nordic American 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 Nordic American, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Nordic American and Danaos in your portfolio? Please note if you are using this as a pair-trade strategy between Nordic American and Danaos, 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. Please check
pair correlation details between NAT and DAC for more information.
Breaking down Nordic American Indicators
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
Let me take a closer look at Nordic American revenue. Based on the latest financial disclosure, Nordic American Tanker reported 67.5
M of revenue. This is 98.07% lower than that of the Industrials sector and significantly higher than that of the
Marine Shipping industry. The revenue for all United States stocks is 99.28% higher than that of Nordic American. As for International Seaways we see revenue of 272.55
M, which is much higher than that of the Marine Shipping
| Nordic | 67.5 Million |
| Sector | 0.0 |
| International | 272.55 Million |
Can Nordic American build up on the newest gain?
Newest kurtosis indicator falls down to -0.23. Possible price appreciation? Nordic American Tanker is displaying above-average volatility over the selected time horizon. Investors should scrutinize Nordic American Tanker independently to ensure intended market timing strategies are aligned with expectations about Nordic American volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nordic American'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 Nordic American'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.
Nordic American Implied Volatility
Nordic American's implied volatility exposes the market's sentiment of Nordic American Tanker stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nordic American'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 Nordic American stock will not fluctuate a lot when Nordic American's options are near their expiration.
Our Final Perspective on Nordic American
Whereas many other companies under the marine shipping industry are still a bit expensive, Nordic American may offer a potential longer-term growth to private investors. The inconsistency in the assessment between current Nordic valuation and our trade advice on Nordic American is due to the recent market swings and your selection of investing horizon. 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 Nordic American.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Nordic American Tankers. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
