Will Amazon traders switch to Genco (NYSE:GNK)?


USD 14.63  0.15  1.04%   

While many traders are getting carried away by overanalyzing competition within industrials space, it is quite reasonable to examine both, Genco Shipping and Amazon as potential short-horizon investments. We are going to concentrate on some of the competitive aspects of both Genco and Amazon.
Published over a month ago
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By analyzing existing basic indicators between Genco Shipping and Amazon, 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 Amazon with a short position in Genco Shipping. 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. Genco Shipping has an asset utilization ratio of 34.75 percent. This signifies that the company is making $0.35 for each dollar of assets. An increasing asset utilization means that Genco Shipping Trading 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 Genco or Orient is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Genco Shipping dividends

A dividend is the distribution of a portion of Genco Shipping 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. Genco Shipping 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. Genco one year expected dividend income is about $1.02 per share.
The current Dividend Yield is estimated to increase to 0.0244, while Payment of Dividends and Other Cash Distributions is projected to decrease to (14.5 M).
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-13.5 M-14.5 M
Dividend Yield 0.02  0.0244 
Dividends per Basic Common Share 0.32  0.32 
Investing in dividend-paying stocks, such as Genco Shipping Trading is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Genco Shipping 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 Genco Shipping. 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 Genco Shipping's Liquidity

Genco Shipping financial leverage refers to using borrowed capital as a funding source to finance Genco Shipping Trading ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Genco Shipping 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. Please check the breakdown between Genco Shipping's total debt and its cash.

Correlation Between Genco and Orient Overseas Inte

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 Genco Shipping together with similar or unrelated positions with a negative correlation. For example, you can also add Orient Overseas to your portfolio. If Orient Overseas is not perfectly correlated to Genco Shipping 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 Genco Shipping, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between GNK and OROVF for more information.

Breaking it down a bit more

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

Let me now analyze Genco Shipping revenue. Based on the latest financial disclosure, Genco Shipping Trading reported 595.76 M of revenue. This is 82.97% 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 93.69% higher than that of Genco Shipping. As for Amazon we see revenue of 485.9 B, which is much higher than that of the Marine Shipping

485.9 B
GNK595.76 Million0.12
AMZN485.9 Billion99.88

Will Genco Shipping recent surge continue?

Recent mean deviation is at 2.31. Genco Shipping Trading exhibits very low volatility with skewness of -0.3 and kurtosis of 0.46. However, we advise investors to further study Genco Shipping Trading technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Genco Shipping's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Genco Shipping'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.

Although many other companies under the marine shipping industry are still a bit expensive, Genco Shipping may offer a potential longer-term growth to traders. With a relatively neutral outlook on the recent economy, it is better to hold off any trading of Genco as the current risk-reward utility is not appealing enough. 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 Genco Shipping.

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 Rifka Kats do not own shares of Genco Shipping Trading. Please refer to our Terms of Use for any information regarding our disclosure principles.

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