The impact of recent bullish trends on Capital Product (NASDAQ:CPLP)


USD 13.50  0.67  4.73%   

As many millenniums are trying to avoid industrials space, it makes sense to recap Capital Product Part a little further and try to understand its current market patterns. We will try to explain if it is still possible for Capital Product to generate above-average margins. Is the firm valuation justified? I am going to cover Capital Product Part perspective on valuation to give you a better outlook on taking a position in it.
Published over six months ago
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Capital Product Part currently holds 600.7 M in liabilities with Debt to Equity (D/E) ratio of 1.23, which is about average as compared to similar companies.
Our trade advice tool can cross-verify current analyst consensus on Capital Product Part and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Capital Product Part using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Capital Product Part based exclusively on its fundamental and basic technical indicators. By analyzing Capital Product's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Capital Product's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Capital Product. We calculate exposure to Capital Product's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Capital Product's related companies.

Capital Product Part Investment Alerts

Capital investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Capital Product Part performance across your portfolios.Please check all investment alerts for Capital

Capital Product Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Capital value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Capital Product competition to find correlations between indicators driving the intrinsic value of Capital.

How does Capital utilize its cash?

To perform a cash flow analysis of Capital Product, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Capital Product is receiving and how much cash it distributes out in a given period. The Capital Product cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

An Additional Perspective On Capital Product Part

The recent bullish price patterns experienced by current Capital Product Part shareholders could raise concerns from insiders as the firm is trading at a share price of 18.49 on very low momentum in volume. The company management teams have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in February. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.67. The current volatility is consistent with the ongoing market swings in February 2022 as well as with Capital Product unsystematic, company-specific events.
 2019 2020 2021 2022 (projected)
Share Based Compensation907 K2.05 M1.84 M1.7 M
Net Cash Flow from Operations54.18 M80.68 M72.61 M82.23 M

Margins Breakdown

Capital profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Capital Product itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Capital Product profit margins.
Profit Margin
EBITDA Margin0.54
Gross Margin0.79
Profit Margin0.21

Capital Product Earnings before Tax is very stable at the moment. Capital Product Average Equity is increasing over the last 8 years. Additionally, Capital Product Average Assets is decreasing over the last 8 years. The previous year's value of Capital Product Average Assets was 894,295,053. Capital Product Earnings before Tax is very stable at the moment. Capital Product Average Equity is very stable at the moment. Additionally, Capital Product Average Assets is very stable at the moment.

Our perspective of the recent Capital Product roll up

The market risk adjusted performance is down to 0.49 as of today. Capital Product Part has relatively low volatility with skewness of 2.4 and kurtosis of 12.12. However, we advise all investors to independently investigate Capital Product Part to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Capital Product'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 Capital Product'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.

Capital Product Implied Volatility

Capital Product's implied volatility exposes the market's sentiment of Capital Product Part stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Capital Product'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 Capital Product stock will not fluctuate a lot when Capital Product's options are near their expiration.

Our Final Take On Capital Product

Although many other companies within the marine shipping industry are still a little expensive, even after the recent corrections, Capital Product may offer a potential longer-term growth to insiders. While some insiders may not share our view, we believe it may be a good time to increase your existing holdings in Capital. 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 Capital Product.

Editorial 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 Ellen Johnson do not own shares of Capital Product Part. Please refer to our Terms of Use for any information regarding our disclosure principles.

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