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Is Overseas Shipholding (NYSE:OSG) gaining more confidence from shareholders?

July 4, 2021  By
In general, we focus on analyzing Overseas (NYSE:OSG) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Overseas Shipholding Group daily price indicators and compare them against related drivers. Let's first try to digest why Overseas Shipholding investors are seeking stability amid unprecedented economic uncertainty.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Overseas Shipholding has an asset utilization ratio of 12.96 percent. This indicates that the company is making $0.13 for each dollar of assets. An increasing asset utilization means that Overseas Shipholding Group is more efficient with each dollar of assets it utilizes for everyday operations.
About 27.0% of the company outstanding shares are owned by corporate insiders. Overseas Shipholding has price-to-book ratio of 0.65. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity next dividend is scheduled to be issued on the 5th of May 2016. The firm had 1:6 split on the 13th of June 2016.
The successful prediction of Overseas Shipholding stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Overseas Shipholding Group, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Overseas Shipholding based on Overseas Shipholding hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Overseas Shipholding's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Overseas Shipholding's related companies.

Use Technical Analysis to project Overseas expected Price

Overseas Shipholding technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, delisted stock market cycles, or different charting patterns.
A focus of Overseas Shipholding technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Overseas Shipholding trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How important is Overseas Shipholding's Liquidity

Overseas Shipholding financial leverage refers to using borrowed capital as a funding source to finance Overseas Shipholding Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Overseas Shipholding 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. Financial leverage can amplify the potential profits to Overseas Shipholding's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Overseas Shipholding's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Overseas Shipholding's total debt and its cash.

Another Deeper Perspective

The company reported the last year's revenue of 418.69 M. Total Income to common stockholders was 30 M with profit before taxes, overhead, and interest of 125.81 M.

Cost of Revenue Breakdown

Overseas Shipholding Cost of Revenue is decreasing over the years with slightly volatile fluctuation. Ongoing Cost of Revenue is projected to grow to about 284.3 M this year. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Overseas Shipholding Cost of Revenue is projected to decrease significantly based on the last few years of reporting. The past year's Cost of Revenue was at 220.85 Million
2014
2015
2016
2017
2018
2019
2020
2021
2014252.18 Million
2015247.87 Million
2016249.16 Million
2017257.12 Million
2018265.76 Million
2019245.39 Million
2020220.85 Million
2021284.34 Million

Our perspective of the latest Overseas Shipholding surge

The total risk alpha is down to 0.22 as of today. Overseas Shipholding Group currently demonstrates below-average downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.63. However, we advise investors to further question Overseas Shipholding Group 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 Overseas Shipholding'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 Overseas Shipholding'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.

Our Bottom Line On Overseas Shipholding

Although some other companies within the oil & gas midstream industry are still a little expensive, even after the recent corrections, Overseas Shipholding may offer a potential longer-term growth to shareholders. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Overseas nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Overseas Shipholding.

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Editorial Staff

Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. View Profile
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 Rifka Kats do not own shares of Overseas Shipholding Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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