Natural Story

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NGS -- USA Stock  

USD 9.10  0.02  0.22%

It seems Natural Gas may not have a good chance to recover from the latest fall as its shares fell again. This firm current daily volatility is 2.97 percent, with a beta of 1.16 and an alpha of -0.36 over DOW. As many retail investors getting excited about latest market fluctuations it is important to sum up Natural Gas based on its critical indicators. Why are we still confident in our projection for a recovery.
Published over two weeks ago
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Chances of Natural Gas to fall after the volatility advances
Natural Gas Services has roughly 27.56 M in cash with 36.06 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.05.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Natural Gas has an asset utilization ratio of 24.78 percent. This connotes that the company is making $0.25 for each dollar of assets. An increasing asset utilization means that Natural Gas Services is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Natural Gas, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Natural Gas along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Natural Gas' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Natural Gas in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Natural Gas. Your research has to be compared to or analyzed against Natural Gas' peers to derive any actionable benefits. When done correctly, Natural Gas' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Natural Gas Services.

How important is Natural Gas's Liquidity

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

How Natural utilizes its cash?

To perform a cash flow analysis of Natural Gas, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Natural Gas is receiving and how much cash it distributes out in a given period. The Natural Gas cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Natural Gas Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Natural Gas reported last year Net Cash Flow from Operations of 32.65 Million

Natural Gas Correlation with Peers

Investors in Natural can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Natural Gas Services. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Natural Gas and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Natural is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Natural for more details

What is driving Natural Gas Investor Appetite?

Natural Gas Services has Sharpe Ratio of -0.0336, which conveys that the firm had -0.0336% of return per unit of risk over the last month. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Natural Gas exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Natural Gas Services mean deviation of 2.27, and Risk Adjusted Performance of (0.048337) to check out the risk estimate we provide.
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0.130.880.830.51
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0.130.30.360.57
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0.880.30.920.73
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0.830.360.920.71
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0.510.570.730.71
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Natural Gas latest fall continue?

Latest treynor ratio indicator falls down to -0.17. Possible price gain? Natural Gas Services exhibits very low volatility with skewness of 0.48 and kurtosis of 0.24. However, we advise investors to further study Natural Gas Services technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Natural Gas' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Natural Gas' 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.

The Bottom Line

While other companies in the oil & gas equipment & services industry are either recovering or due for a correction, Natural may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor drop any shares of Natural Gas at this time. The Natural Gas Services 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 Natural Gas.

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 Vlad Skutelnik do not own shares of Natural Gas Services. Please refer to our Terms of Use for any information regarding our disclosure principles.

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