Newpark Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;'>NR</div>
NR -- USA Stock  

USD 1.22  0.08  6.15%

As many millenniums are trying to avoid energy space, it makes sense to sum up Newpark Resources a little further and try to understand its current market patterns. We will analyze why Newpark Resources investors may still consider a stake in the business. Is the firm valuation sustainable? Here I will cover a perspective on valuation of Newpark to give you a better outlook on taking a position in this stock.
Published over a month ago
View all stories for Newpark Resources | View All Stories
Is Newpark Resources (NYSE:NR) ready for a correction?
Newpark Resources reports 189.49 M of total liabilities with total debt to equity ratio (D/E) of 0.36, which is normal for its line of buisiness. The entity has a current ratio of 3.9, indicating that it is in good position to pay out its debt commitments in time. We provide investment recommendation to complement the last-minute expert consensus on Newpark Resources. 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 Newpark Resources 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 Newpark Resources based exclusively on its fundamental and basic technical indicators. By analyzing Newpark Resources'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 Newpark Resources'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 Newpark Resources. We calculate exposure to Newpark Resources's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Newpark Resources's related companies.

Watch out for price decline

Please consider monitoring Newpark Resources on a daily bases if you are holding a position in it. Newpark Resources is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Newpark Resources stock to be traded above the $1 level to remain listed. If Newpark Resources stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Newpark Resources Investment Alerts

Newpark 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 Newpark Resources performance across your portfolios.Please check all investment alerts for Newpark

Newpark Resources Valuation Ratios as Compared to Competition

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

How Newpark utilizes its cash?

To perform a cash flow analysis of Newpark Resources, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Newpark Resources is receiving and how much cash it distributes out in a given period. The Newpark Resources cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Newpark Resources Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Newpark Resources reported last year Net Cash Flow from Operations of 72.29 Million

Breaking down Newpark Resources Indicators

The firm generated the yearly revenue of 773.2 M. Annual Net Loss to common stockholders was (26.38 M) with gross profit of 142.18 M.
 2017 2018 2019 2020 (projected)
Interest Expense13.27 M14.86 M14.37 M13.97 M
Gross Profit139.86 M179.57 M135.38 M152.43 M

Margins Breakdown

Newpark profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Newpark Resources itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Newpark Resources profit margins.
0.18
Gross Margin
0.0733
EBITDA Margin
Operating Margin1.32
EBITDA Margin0.0733
Gross Margin0.18
Profit Margin(0.016421)


Newpark Resources Earnings Before Interest Taxes and Depreciation Amortization EBITDA is relatively stable at the moment. Also, Newpark Resources Net Income Per Employee is decreasing over the last 8 years.

Is Newpark showing record of lower volatility?

Semi deviation is down to 6.74. It may connote a possible volatility slump. Newpark Resources is displaying above-average volatility over the selected time horizon. Investors should scrutinize Newpark Resources independently to ensure intended market timing strategies are aligned with expectations about Newpark Resources volatility.

Our Final Take On Newpark Resources

While many other companies in the oil & gas equipment & services industry are either recovering or due for a correction, Newpark may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Newpark valuation and our trade advice on Newpark Resources 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 Newpark Resources.

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 Achuva Shats do not own shares of Newpark Resources. 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