OMEX Odyssey stock Story

OMEX -  USA Stock  

USD 6.59  0.21  3.09%

Odyssey Marine Cash and Equivalents Turnover is fairly stable at the moment as compared to the past year. Odyssey Marine reported Cash and Equivalents Turnover of 2.06 in 2019. Revenue to Assets is likely to rise to 0.65 in 2020, whereas Net Income Per Employee is likely to drop (804.6 K) in 2020. In spite of fairly strong basic indicators, Odyssey Marine is not utilizing all of its potentials. The current stock price disturbance, may contribute to a short-term swings for the investors. We currently estimate Odyssey Marine as overvalued. The real value is approaching 4.41 per share.
Published over six months ago
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Does Odyssey Marine (NASDAQ:OMEX) have strong basic indicators based on the current rise?
We provide trade recommendations to complement the recent expert consensus on Odyssey Marine Explo. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. Odyssey Marine dividends can provide a clue to the current value of the stock. The firm is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Odyssey Marine income statement, its balance sheet, and the statement of cash flows. Potential Odyssey Marine investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Odyssey Marine investors may use each financial statement separately, they are all related. The changes in Odyssey Marine's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Odyssey Marine's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Odyssey Marine fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Odyssey Marine performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Odyssey Marine shares is the value that is considered the true value of the share. If the intrinsic value of OMEX Odyssey is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Odyssey Marine.
Please read more on our fundamental analysis page.

How important is Odyssey Marine's Liquidity

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

How OMEX Odyssey utilizes its cash?

To perform a cash flow analysis of Odyssey Marine, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Odyssey Marine is receiving and how much cash it distributes out in a given period. The Odyssey Marine cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Odyssey Marine Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Odyssey Marine reported Net Cash Flow from Operations of (9.29 Million) in 2020

Odyssey Marine Gross Profit

Odyssey Marine Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Odyssey Marine previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Odyssey Marine Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Acquisition by Jones Christopher Emlyn of 6964 shares of Odyssey Marine subject to Rule 16b-3

Legal trades by Odyssey Marine 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:
Odyssey insider trading alert for grant of restricted stock unit (rsu) by Jones Christopher Emlyn, Chief Financial Officer, on 16th of June 2021. This event was filed by Odyssey Marine Exploratio with SEC on 2021-06-16. Statement of changes in beneficial ownership - SEC Form 4 [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 Odyssey Marine Investor Appetite?

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Odyssey Marine is not uncomon. Institutional investors typically avoid acquiring a high percentage of Odyssey Marine stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Odyssey is distributed among investors.

Ownership Allocation

The market capitalization of Odyssey Marine Explo is $80.76 Million. Odyssey Marine has significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note, that even with negative profits, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company.

Retail Investors
Retail Investors67.3
 2017 2018 2019 2020 (projected)
Interest Expense2.73 M3.14 M5.36 M4.48 M
Gross Profit1.25 M3.28 M3.07 M3.15 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Odyssey Marine has an asset utilization ratio of 43.83 percent. This suggests that the company is making $0.44 for each dollar of assets. An increasing asset utilization means that Odyssey Marine Exploration is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
6.1 M
Current Assets1.26 Million14.06
Assets Non Current6.06 Million67.72
Goodwill1.63 Million18.22

Will Odyssey slide impact its fundamentals?

The value at risk is down to -7.91 as of today. Odyssey Marine Exploration shows above-average downside volatility for the selected time horizon. We advise investors to inspect Odyssey Marine Exploration further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Odyssey Marine future alpha.

Our Takeaway on Odyssey Marine Investment

While few other entities in the specialty business services industry are either recovering or due for a correction, Odyssey Marine may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 14th of November 2020, our research shows that Odyssey Marine is a rather unstable investment opportunity with a very high probability of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our final 30 days buy-or-sell advice on the company is Strong Sell.

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 Odyssey Marine Expl. Please refer to our Terms of Use for any information regarding our disclosure principles.

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