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Must-know: An overview of Diana Shipping’s earnings

Part 4
Must-know: An overview of Diana Shipping’s earnings (Part 4 of 9)

Diana’s analyst revisions, liquidity, and valuation metrics

Diana’s analyst revisions

After Diana Shipping (DSX) reporting its earnings, the average analyst recommendation on the company stock was a hold rating because the company reported a rise in its revenue and strong fleet size. However, opinions were neutralized because the company’s bottom line weakened due to higher operating expenses after the rising fleet size.

Leverage RatiosEnlarge Graph

Looking at the company’s financial leverage and valuation metrics, Diana Shipping has a good position compared to the industry average and its peers.

DSX recorded a debt to assets ratio of 26.50 compared to the industry average of 42.18. Navios Maritime Holdings Inc. (NM), DryShips (DRYS), Safe Bulkers (SB), and Diana Containerships (DCIX) recorded 51.65, 56.06, 45.70, and 30.98, respectively.

For 2Q14, DSX recorded total assets of $1.8 billion compared to $1.7 million in the same quarter last year. Cash and cash equivalents increased to $309.1 million from $240.6 million in the same quarter last year. Total stockholders’ equity increased to $1.3 billion from $1.2 billion in same period a year ago, while current liabilities increased to $92.6 million from $62.7 million.

Meanwhile, net cash provided by financing activities increased to $9.8 million compared to net cash used by financing activities of $932,000 in the same quarter last year.

DSX recorded a current quarter enterprise value (or EV) to earnings before interest, taxes, depreciation, and amortization (or EBITDA) of 10.54 compared to the industry average of 9.49. Navios Maritime Holdings Inc. (NM), Safe Bulkers (SB), and Diana Containerships (DCIX) recorded 9.54, 8.29, and 9.18, respectively.

Meanwhile, the forward 12-month EV to EBITDA of DSX stood at 10.08 compared to the industry average of 8.80. Navios Maritime Holdings Inc. (NM), DryShips (DRYS), Safe Bulkers (SB), and Diana Containerships (DCIX) recorded 8.86, 7.25, 8.27, and 9.53, respectively.

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