DryShips Inc. [NASDAQ:DRYS]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. Its stock price has been found in the range of 7.64 to 12.66. This is compared to its latest closing price of $6.03.
For the quarter ending in Jun-15 DryShips Inc. [DRYS] generated $0.4 billion in sales. That’s 21.60% lower than the average estimate of $0.51 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Tue 26 Feb (In 43 Days).
Fundamental Analysis of DryShips Inc. [DRYS]
Now let’s turn to look at profitability: with a current Operating Margin for DryShips Inc. [DRYS] sitting at -24.40 and its Gross Margin at +6.65, this company’s Net Margin is now 11.40%. These measurements indicate that DryShips Inc. [DRYS] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is -5.35, and its Return on Invested Capital has reached -3.40%. Its Return on Equity is -11.24, and its Return on Assets is -7.54. These metrics suggest that this DryShips Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, DryShips Inc. [DRYS] has generated a Total Debt to Total Equity ratio of 20.56. Similarly, its Total Debt to Total Capital is 17.05, while its Total Debt to Total Assets stands at 15.55. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 18.91, and its Long-Term Debt to Total Capital is 15.69. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is -73.15. The Enterprise Value to Sales for this firm is now 3.92, and its Total Debt to Enterprise Value stands at 0.57.
Shifting the focus to workforce efficiency, DryShips Inc. [DRYS] earns $279,767 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.05 and its Total Asset Turnover is 0.18. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.32 and its Current Ratio is 2.66. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: DryShips Inc. [DRYS] has 90.71M shares outstanding, amounting to a total market cap of $563.31M. Its stock price has been found in the range of 2.74 to 7.22. At its current price, it has moved by -13.99% from its 52-week high, and it has moved 126.64% from its 52-week low.
This stock’s Beta value is currently 0.52, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.58. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is DryShips Inc. [DRYS] a Reliable Buy?
Shares of DryShips Inc. [DRYS], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.