Whilst many millenniums are getting more into energy space, it makes sense to digest Overseas Shipholding Group against current trends within the economy. As we have suggested previously, Overseas Shipholding is beginning its dip as shareholders shift to be more bearish due to the increased sector volatility. The returns on the market and returns on Overseas Shipholding appear slightly-related for the last few months. Sound basic indicators of the firm may also indicate signals of longer-term gains for Overseas shareholders. Overseas Shipholding is scheduled to announce its earnings today. The upcoming quarterly report is expected on the 6th of April 2022.
Overseas Shipholding's average rating is Hold from 1 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 Overseas Shipholding market sentiment investors' perception of the future value of Overseas. Let us look at a few aspects of Overseas technical analysis.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Overseas Shipholding Group. In general, sophisticated investors focus on analyzing Overseas Shipholding stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Overseas Shipholding's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Overseas Shipholding's intrinsic value. In addition to deriving basic predictive indicators for Overseas Shipholding, many experienced traders also check how macroeconomic factors affect Overseas Shipholding price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Overseas Shipholding's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
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.
How is Overseas allocating its cash?
To perform a cash flow analysis of Overseas Shipholding, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Overseas Shipholding is receiving and how much cash it distributes out in a given period. The Overseas Shipholding cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Closer look at Overseas Shipholding Semi Deviation
Overseas Shipholding Group has current Semi Deviation of 1.85. Semi-deviation provides a good measure of downside risk for a equity or a portfolio. It is similar to standard deviation, but it only looks at periods where the returns are less than the target or average level. Semi-deviation is the square root of semi-variance. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Let's now compare Overseas Shipholding Semi Deviation to its closest peers:
OSG
ENB
EPD
WMB
LNG
OSG
1.847421057885834
ENB
0.79
EPD
0.59
WMB
0.91
LNG
1.36
Another setback for Overseas Shipholding shareholders
The expected short fall is down to -2.42 as of today. Overseas Shipholding Group currently demonstrates below-average downside deviation. It has Information Ratio of 0.18 and Jensen Alpha of 0.41. 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.
Overseas Shipholding Implied Volatility
Overseas Shipholding's implied volatility exposes the market's sentiment of Overseas Shipholding Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Overseas Shipholding's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Overseas Shipholding stock will not fluctuate a lot when Overseas Shipholding's options are near their expiration.
Our Bottom Line On Overseas Shipholding
Although few other entities in the oil & gas midstream industry are either recovering or due for a correction, Overseas may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 9th of March 2022, we believe that at this point, Overseas Shipholding is undervalued with close to average probability of distress within the next 2 years. Our present buy vs. sell advice on the firm is Strong Buy.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
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