Nordic Stock Story

NAT
 Stock
  

USD 2.59  0.10  3.72%   

It looks like International Seaways will continue to recover much faster as its share price surged up 2.52% today to Nordic American's 6.8627%. As many rational traders are trying to avoid industrials space, it makes sense to review Nordic American Tanker a little further and understand how it stands against International Seaways and other similar entities. We are going to break down some of the competitive aspects of both Nordic and International.
Published over two months ago
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Are retail investors acquiring Nordic American (NYSE:NAT) or International Seaways?

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 companies, such as Nordic or American is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending 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 $0.18 per share.
Nordic American Dividend Yield is comparatively stable at the moment as compared to the past year. Nordic American reported Dividend Yield of 0.036 in 2021. Dividends per Basic Common Share is likely to gain to 0.06 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (10.5 M) in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-9.7 M-10.5 M
Dividend Yield 0.036  0.0369 
Dividends per Basic Common Share 0.06  0.06 
Investing in dividend-paying stocks, such as Nordic American Tanker 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 Tanker 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. Please check the breakdown between Nordic American's total debt and its cash.

Correlation Between Nordic and American Express

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 American Express to your portfolio. If American Express 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, 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 NAT and AXP 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

Nordic67.5 Million
Sector0.0
International272.55 Million
67.5 M
Nordic
Sector
272.6 M
International

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.

Editorial Staff

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 Tanker. Please refer to our Terms of Use for any information regarding our disclosure principles.

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