Tsakos Story

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With so much uncertainty about the energy space, it is fair to recap Tsakos Energy Navigation against current market trends. As we have suggested previously, Tsakos Energy is beginning its decline as insiders shift to be more bearish due to the increased sector volatility. The returns on investing in Tsakos Energy and the market returns of the last few months appear highly unrelated. Unfluctuating basic indicators of the firm may also hint at signs of long period losses for Tsakos insiders. Tsakos Energy Navigation is scheduled to announce its earnings today.
Published over three weeks ago
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Our recent technical analysis of Tsakos Energy Navigation (NYSE:TNP)
Tsakos Energy Navigation's average rating is Buy from 9 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Tsakos Energy market sentiment investors' perception of the future value of Tsakos. Let us look at a few aspects of Tsakos technical analysis. About 33.0% of the company outstanding shares are owned by corporate insiders. Tsakos Energy Navigation has price-to-book ratio of 0.13. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 0.19. The firm last dividend was issued on the 15th of December 2020. Tsakos Energy had 2:1 split on the 1st of July 2020.

How important is Tsakos Energy's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Tsakos Energy, but it might be worth checking our own buy vs. sell analysis

Closer look at Tsakos Energy Variance

Tsakos Energy Navigation has current Variance of 11.58. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance 
 = 
SUM(RET DEV)2 
 = 
11.58
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N = Number of points for the period
Let's now compare Tsakos Energy Variance to its closest peers:
TNP
ENBBF
ENB
EPD
TRP
TNP11.584243959645388
ENBBF61.05
ENB1.96
EPD3.15
TRP2.37

Is Tsakos Energy decline permanent?

Recent expected short fall indicator falls down to -2.91. Possible price boost? Tsakos Energy Navigation currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.07. However, we advise investors to further question Tsakos Energy Navigation 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 Tsakos Energy'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 Tsakos Energy'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 Current Takeaway on Tsakos Energy Investment

Although some other companies in the oil & gas midstream industry are either recovering or due for a correction, Tsakos Energy may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 24th of March 2021, we believe that Tsakos Energy is currently overvalued with close to average chance of bankruptcy in the next two years. Our ongoing 30 days buy-hold-sell recommendation on the firm 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 Gabriel Shpitalnik do not own shares of Tsakos Energy Navigation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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