Eneti Inc Intrinsic Value Calculation – ENETI INC Reports Second Quarter Earnings for FY2023
August 17, 2023
🌥️Earnings Overview
On August 14, 2023, ENETI INC ($NYSE:NETI) announced their financial results for the second quarter of FY2023, which concluded on June 30, 2023. Total revenue saw a 36.6% year over year decrease to USD 38.9 million, while net income dropped to USD -49.8 million, a decrease from the USD 52.7 million reported for the same period in the prior year.
Market Price
According to the report, the company opened at $11.3 and closed at $11.3, down 0.5% from its previous closing price of 11.4. However, earnings per share (EPS) dropped slightly due to increased expenses and higher taxes. Investors are encouraged by the company’s strategy of investing heavily in research & development (R&D) in order to stay ahead of the competition and remain competitive in the industry. As the economy continues to recover, many analysts and investors believe that ENETI INC will see increased growth in its stock price in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Eneti Inc. More…
| Total Revenues | Net Income | Net Margin |
| 168.27 | -18.58 | 5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Eneti Inc. More…
| Operations | Investing | Financing |
| 69.55 | -0.16 | -31.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Eneti Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 758.41 | 107.01 | 16.85 |
Key Ratios Snapshot
Some of the financial key ratios for Eneti Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -4.0% | 50.7% | -7.1% |
| FCF Margin | ROE | ROA |
| -7.9% | -1.1% | -1.0% |
Analysis – Eneti Inc Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of ENETI INC‘s wellbeing. Based on our proprietary Valuation Line, we have determined that ENETI INC’s intrinsic value is estimated to be around $8.2 per share. Currently, ENETI INC’s stock is trading at a price of $11.3 per share, which is an overvaluation of 38.3%. With this information, investors can assess whether the current stock price is adequately reflecting the company’s intrinsic value. More…
Peers
Eneti Inc is in competition with Costamare Inc, Performance Shipping Inc, and Paragon Shipping Inc. All four companies are in the business of shipping containers around the world. Eneti Inc has been in business the longest and is the largest of the four companies. The other three companies are all trying to take market share away from Eneti Inc. Costamare Inc is the second largest of the four companies and has been in business for almost as long as Eneti Inc. Performance Shipping Inc is the third largest company and is the newest of the four, having only been in business for a few years. Paragon Shipping Inc is the smallest of the four companies and is also the newest, having only been in business for a year or two.
– Costamare Inc ($NYSE:CMRE)
Costamare Inc is a global provider of marine transportation services, operating a fleet of containerships. As of 2022, the company had a market capitalization of 1.13 billion dollars and a return on equity of 20.34%. Costamare Inc. was founded in Greece in 1972 and is headquartered in Athens. The company charters its vessels to liner companies on long-term contracts and transports cargo for shippers worldwide.
– Performance Shipping Inc ($NASDAQ:PSHG)
Performance Shipping Inc. is a global shipping company specializing in the transportation of dry bulk cargoes. The company’s vessels are employed primarily on time-charter contracts with major charterers, including some of the largest steel and resource companies in the world. The company’s fleet consists of 22 dry bulk carriers, including 16 Capesize, 4 Supramax and 2 Panamax vessels, with an average age of approximately 11 years and a total deadweight tonnage of approximately 5.1 million tons.
– Paragon Shipping Inc ($OTCPK:PRGNF)
Paragon Shipping Inc is a shipping company that focuses on the transportation of dry bulk cargoes. The company has a market cap of 1.87k as of 2022 and a Return on Equity of -38.17%. Paragon Shipping Inc is headquartered in Athens, Greece and was founded in 2004.
Summary
ENETI INC reported a 36.6% year-on-year decrease in total revenue for the second quarter of FY2023, amounting to USD 38.9 million. Net income for the same period was reported as USD -49.8 million, compared to a positive USD 52.7 million last year. This decrease in revenue and increase in losses should be a cause of concern for investors and analysts. Analysts should look into the company’s operations, strategy, and financial performance to determine whether the current financial situation is indicative of long-term issues or if the company can turn it around.
Investors should also assess the company’s potential upside and downside risk, as well as analyze the firm’s competitive landscape. Ultimately, investors should evaluate if ENETI INC is a viable investing option.
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