Noble Story

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NBLX -- USA Stock  

USD 7.24  0.51  6.58%

It looks like Diamond S will be up for a correction faster as its share price went up 0.23% today to Noble Midstream's 1.05%As many rational traders are trying to avoid energy space, it makes sense to break down Noble Midstream Partners a little further and understand how it stands against Diamond S and other similar entities. We are going to inspect some of the competitive aspects of both Noble and Diamond.
Published over a month ago
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Should I exit all of Diamond and Noble?
By analyzing existing technical and fundamental indicators between Noble Midstream and Diamond, 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 Diamond with a short position in Noble Midstream. 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. Noble Midstream has an asset utilization ratio of 110.9 percent. This suggests that the company is making $1.11 for each dollar of assets. An increasing asset utilization means that Noble Midstream Partners 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 Noble or Antero is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Noble Midstream dividends

A dividend is the distribution of a portion of Noble Midstream 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. Noble Midstream 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. Noble one year expected dividend income is about $1.38 per share.
Preferred Dividends Income Statement Impact is likely to drop to about 11.3 M in 2020. Payment of Dividends and Other Cash Distributions is likely to drop to about (125.1 M) in 2020.
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact14 M11.3 M
Payment of Dividends and Other Cash Distributions-115.9 M-125.1 M
Dividend Yield 0.1  0.09 
Dividends per Basic Common Share 2.51  2.46 
Investing in dividend-paying stocks, such as Noble Midstream Partners is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Noble Midstream 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 Noble Midstream. 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 Noble Midstream's Liquidity

Noble Midstream financial leverage refers to using borrowed capital as a funding source to finance Noble Midstream Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Noble Midstream 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 Noble Midstream's total debt and its cash.

Correlation Between Noble and Antero Midstream

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 Noble Midstream together with similar or unrelated positions with a negative correlation. For example, you can also add Antero Midstream to your portfolio. If Antero Midstream is not perfectly correlated to Noble Midstream 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 Noble Midstream 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 NBLX and AM for more information.

Payment of 473 shares by Thomas Christensen of Noble Midstream subject to Rule 16b-3

Legal trades by Noble Midstream insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Noble Midstream Partners insider trading alert for payment of common units representing limited partner interests by Thomas Christensen, Chief Financial Officer, on 5th of May 2020. This event was filed by Noble Midstream Partners with SEC on 2020-05-05. Statement of changes in beneficial ownership - SEC Form 4. Thomas Christensen is currently serves as chief accounting officer of general partner of Noble Midstream Part [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Noble Midstream Investor Appetite?

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 now go over Noble Midstream revenue. Based on the latest financial disclosure, Noble Midstream Partners reported 767.14 M of revenue. This is 98.44% lower than that of the Energy sector and 93.47% lower than that of the Oil & Gas Midstream industry. The revenue for all United States stocks is 91.87% higher than that of Noble Midstream. As for Diamond S we see revenue of 686.85 M, which is 94.15% lower than that of the Oil & Gas Midstream

Sector
9.4 B
NBLX767.14 Million7.05
Sector9.43 Billion86.65
DSSI686.85 Million6.31

Will Noble slide impact its fundamentals?

Current market risk adjusted performance is at 3.0. Noble Midstream Partners is displaying above-average volatility over the selected time horizon. Investors should scrutinize Noble Midstream Partners independently to ensure intended market timing strategies are aligned with expectations about Noble Midstream volatility.

The Bottom Line

While many other companies in the oil & gas midstream industry are either recovering or due for a correction, Noble may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 2nd of August 2020, our primary 30 days buy-hold-sell recommendation on the company is Sell. However, we believe Noble Midstream is currently undervalued 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 Noble Midstream Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

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