Is STOLT NIELSEN LIMITED outlook positive for August 2020?
 | By Rifka Kats | Macroaxis Story |
In this story I am going to address all STOLT NIELSEN shareholders. We will look into why despite regular market tumult, the longer-term fundamental drivers of the firm are still sound. The firm current daily volatility is 13.91 percent, with a beta of 2.3 and alpha of 0.6 over DOW. The entity current odds of financial turmoil is under 47 percent. Will the entity executives continue to add value? STOLT NIELSEN appears to be very risky, given 1 month investment horizon. STOLT NIELSEN LIMITED owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0431, which indicates the firm had 0.0431% of return per unit of standard deviation over the last 1 month. Our philosophy towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By evaluating STOLT NIELSEN LIMITED technical indicators you can currently evaluate if the expected return of 0.6% is justified by implied risk. Please operate STOLT NIELSEN coefficient of variation of 1143.8, and risk adjusted performance of 0.1912 to confirm if our risk estimates are consistent with your expectations.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
STOLT NIELSEN has accumulated 2.69 B in total debt with debt to equity ratio (D/E) of 2.02, implying the firm greatly relies on financing operations through barrowing. This firm has accumulated 2.69 B in total debt with debt to equity ratio (D/E) of 2.02, implying STOLT NIELSEN LIMITED greatly relies on financing operations through barrowing. The company has a current ratio of 0.83, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Stolt Nielsen financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Stolt Nielsen, including all of Stolt Nielsen's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Stolt Nielsen assets, the company is considered highly leveraged. Understanding the composition and structure of overall Stolt Nielsen debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
How important is Stolt Nielsen's Liquidity
Stolt Nielsen financial leverage refers to using borrowed capital as a funding source to finance Stolt Nielsen Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Stolt Nielsen 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 Stolt Nielsen'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 Stolt Nielsen'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 Stolt Nielsen's total debt and its cash.
What is driving Stolt Nielsen Investor Appetite?
STOLT NIELSEN makes 3.22 x cash per share. STOLT NIELSEN LIMITED has a beta of 2.2968. Let's try to break down what STOLT's beta means in this case. STOLT NIELSEN returns are very sensitive to returns on the market. As the market goes up or down, STOLT NIELSEN is expected to follow. The beta indicator helps investors understand whether STOLT NIELSEN moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if STOLT deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm reported revenue of 2.03 B. Net Loss for the year was (6.89 M) with profit before overhead, payroll, taxes, and interest of 615.72 M.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Stolt Nielsen Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.