KNOT Offshore Return On Equity vs. Current Valuation

KNOP Stock  USD 5.39  0.05  0.94%   
Based on the measurements of profitability obtained from KNOT Offshore's financial statements, KNOT Offshore Partners may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in January. Profitability indicators assess KNOT Offshore's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.06)
Current Value
(0.05)
Quarterly Volatility
3.9 K
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, KNOT Offshore's Days Sales Outstanding is relatively stable compared to the past year. As of 12/23/2024, Sales General And Administrative To Revenue is likely to grow to 0.03, while Operating Cash Flow Sales Ratio is likely to drop 0.42. As of 12/23/2024, Accumulated Other Comprehensive Income is likely to grow to about (386.1 M). In addition to that, Operating Income is likely to drop to about 23.9 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.470.2784
Way Up
Pretty Stable
Operating Profit Margin0.08210.0865
Notably Down
Slightly volatile
For KNOT Offshore profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KNOT Offshore to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KNOT Offshore Partners utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KNOT Offshore's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KNOT Offshore Partners over time as well as its relative position and ranking within its peers.
  

KNOT Offshore's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Oil & Gas Storage & Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of KNOT Offshore. If investors know KNOT will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about KNOT Offshore listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.21)
Earnings Share
(0.61)
Revenue Per Share
8.478
Quarterly Revenue Growth
0.027
Return On Assets
0.0298
The market value of KNOT Offshore Partners is measured differently than its book value, which is the value of KNOT that is recorded on the company's balance sheet. Investors also form their own opinion of KNOT Offshore's value that differs from its market value or its book value, called intrinsic value, which is KNOT Offshore's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because KNOT Offshore's market value can be influenced by many factors that don't directly affect KNOT Offshore's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between KNOT Offshore's value and its price as these two are different measures arrived at by different means. Investors typically determine if KNOT Offshore is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KNOT Offshore's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

KNOT Offshore Partners Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining KNOT Offshore's current stock value. Our valuation model uses many indicators to compare KNOT Offshore value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.15INSWSTNGTNKLPGKNOP 0500M1B1.5B2B2.5B3B -0.0500.050.100.150.200.250.300.35
KNOT Offshore Partners is rated fifth overall in return on equity category among its peers. It is rated fourth overall in current valuation category among its peers reporting about  332,636,420,625  of Current Valuation per Return On Equity. At this time, KNOT Offshore's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value KNOT Offshore by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

KNOT Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

KNOT Offshore

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0032
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

KNOT Offshore

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.06 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

KNOT Current Valuation vs Competition

KNOT Offshore Partners is rated fourth overall in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is now estimated at about 8.45 Billion. KNOT Offshore retains roughly 1.06 Billion in current valuation claiming about 13% of equities under Energy industry.
JavaScript chart by amCharts 3.21.15TNKLPGINSWSTNGKNOP

KNOT Offshore Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in KNOT Offshore, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KNOT Offshore will eventually generate negative long term returns. The profitability progress is the general direction of KNOT Offshore's change in net profit over the period of time. It can combine multiple indicators of KNOT Offshore, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-406.4 M-386.1 M
Operating Income25.1 M23.9 M
Income Before Tax-38.9 M-37 M
Total Other Income Expense Net-64.1 M-60.9 M
Net Loss-34.3 M-32.6 M
Income Tax Expense-4.6 M-4.4 M
Net Income Applicable To Common Shares54 M48.7 M
Net Loss-23 M-21.9 M
Interest Income2.9 M2.9 M
Net Interest Income-66.9 M-63.6 M
Change To Netincome-50 M-47.5 M
Net Loss(1.00)(0.95)
Income Quality(3.83)(3.64)
Net Income Per E B T 0.88  0.76 

KNOT Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on KNOT Offshore. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of KNOT Offshore position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the KNOT Offshore's important profitability drivers and their relationship over time.

Use KNOT Offshore in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if KNOT Offshore position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KNOT Offshore will appreciate offsetting losses from the drop in the long position's value.

KNOT Offshore Pair Trading

KNOT Offshore Partners Pair Trading Analysis

The ability to find closely correlated positions to KNOT Offshore could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace KNOT Offshore when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back KNOT Offshore - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling KNOT Offshore Partners to buy it.
The correlation of KNOT Offshore is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as KNOT Offshore moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if KNOT Offshore Partners moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for KNOT Offshore can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your KNOT Offshore position

In addition to having KNOT Offshore in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Healthcare Thematic Idea Now

Healthcare
Healthcare Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Theme or any other thematic opportunities.
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Additional Tools for KNOT Stock Analysis

When running KNOT Offshore's price analysis, check to measure KNOT Offshore's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy KNOT Offshore is operating at the current time. Most of KNOT Offshore's value examination focuses on studying past and present price action to predict the probability of KNOT Offshore's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KNOT Offshore's price. Additionally, you may evaluate how the addition of KNOT Offshore to your portfolios can decrease your overall portfolio volatility.

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