By analyzing existing fundamental drivers between Safe Bulkers and Nippon, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Nippon with a short position in Safe Bulkers. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Safe Bulkers has an asset utilization ratio of 16.41 percent. This suggests that the company is making $0.16 for each dollar of assets. An increasing asset utilization means that Safe Bulkers is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Safe or Euroseas is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Safe Bulkers dividends
A dividend is the distribution of a portion of Safe Bulkers earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Safe Bulkers dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Safe one year expected dividend income is about USD0.15 per share.
At present, Safe Bulkers'
Dividends Paid is projected to decrease significantly based on the last few years of reporting. The current year's
Dividend Payout Ratio is expected to grow to 0.44, whereas
Dividend Yield is forecasted to decline to 0.07.
Investing in dividend-paying stocks, such as Safe Bulkers is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Safe Bulkers must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Safe Bulkers. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Safe Bulkers's Liquidity
Safe Bulkers
financial leverage refers to using borrowed capital as a funding source to finance Safe Bulkers ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Safe Bulkers 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 Safe Bulkers' 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 Safe Bulkers' 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 Safe Bulkers's total debt and its cash.
Correlation Between Safe and Euroseas
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Safe Bulkers together with similar or unrelated positions with a negative correlation. For example, you can also add Euroseas to your portfolio. If Euroseas is not perfectly correlated to Safe Bulkers it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Safe Bulkers, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Safe Bulkers and Euroseas in your portfolio? Please note if you are using this as a pair-trade strategy between Safe Bulkers and Euroseas, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between SB and ESEA for more information.
Breaking down Safe Bulkers Further
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Safe Bulkers revenue. Based on the latest financial disclosure, Safe Bulkers reported 214.96
M of revenue. This is 93.86% lower than that of the Industrials sector and significantly higher than that of the
Marine Shipping industry. The revenue for all United States stocks is 97.72% higher than that of Safe Bulkers. As for Nippon Yusen we see revenue of 1610
B, which is much higher than that of the Marine Shipping
| SB | 214.96 Million | 0.0133 |
| Sector | 0.0 | 0.0 |
| NPNYY | 1.61 Trillion | 99.99 |
Our take on today Safe Bulkers rise
Current potential upside is at 6.16. Safe Bulkers shows above-average downside volatility for the selected time horizon. We advise investors to inspect Safe Bulkers further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Safe Bulkers future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Safe Bulkers' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Safe Bulkers' 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.
Whereas other entities under the marine shipping industry are still a bit expensive, Safe Bulkers may offer a potential longer-term growth to investors. The bottom line, as of the 13th of September 2021, we see that Safe Bulkers almost mirrors the market. The company is
overvalued with
below average probability of distress within the next 24 months. Our primary 90 days recommendation on the company is
Strong Sell.
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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 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 Vlad Skutelnik do not own shares of Safe Bulkers. Please refer to our
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