Natural Story

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NRP -- USA Stock  

USD 17.16  0.01  0.06%

As many baby boomers are still indifferent towards energy space, it makes sense to recap Natural Resource Partners. We will analyze why Natural Resource investors may still consider a stake in the business. Is the firm valuation justified? Here we go over Natural Resource Partners perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Breaking down Natural Resource valuation
Natural Resource Partners has 494.97 M in debt with debt to equity (D/E) ratio of 1.35, which is OK given its current industry classification.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Natural Resource has an asset utilization ratio of 8.21 percent. This suggests that the company is making $0.0821 for each dollar of assets. An increasing asset utilization means that Natural Resource Partners is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Natural Resource Partners 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 Natural Resource Partners based exclusively on its fundamental and basic technical indicators. By analyzing Natural Resource'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 Natural Resource'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 Natural Resource. We calculate exposure to Natural Resource's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Natural Resource's related companies.

Natural Resource Partners Investment Alerts

Natural 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 Natural Resource Partners performance across your portfolios.Please check all investment alerts for Natural

Natural Resource Valuation Ratios as Compared to Competition

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

How Natural utilizes its cash?

To perform a cash flow analysis of Natural Resource, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Natural Resource is receiving and how much cash it distributes out in a given period. The Natural Resource cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Natural Resource Net Cash Flow from Operations is very stable at the moment as compared to the past year. Natural Resource reported last year Net Cash Flow from Operations of 89.27 Million

A Deeper Perspective

The recent roll up in Natural Resource Partners short term price appreciation may encourage insiders to take a closer look at the firm as it is trading at a share price of 17.98 on 17,600 in trading volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.68. The current volatility is consistent with the ongoing market swings in February 2021 as well as with Natural Resource Partners unsystematic, company-specific events.

Margins Breakdown

Natural profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Natural Resource itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Natural Resource profit margins.
EBITDA Margin0.13
Gross Margin0.78
Profit Margin(0.18)


Natural Resource Average Equity is very stable at the moment. Moreover, Natural Resource Earnings Before Interest Taxes and Depreciation Amortization USD is very stable at the moment.

Some Natural technical indicators suggest correction

The total risk alpha is down to -0.14 as of today. Natural Resource Partners currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.29. However, we advise investors to further question Natural Resource Partners expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Natural Resource'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 Natural Resource'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.

The Bottom Line

Although other companies within the thermal coal industry are still a little expensive, even after the recent corrections, Natural Resource may offer a potential longer-term growth to insiders. All things considered, as of the 14th of March 2021, our up-to-date 30 days buy-or-sell advice on the firm is Strong Hold. We believe Natural Resource is currently overvalued with below average odds of financial turmoil 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 Achuva Shats do not own shares of Natural Resource Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

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