DHT Holdings is engaged in the ownership and operation of a fleet of crude oil carriers. The company was incorporated in 2005 and is based in Hamilton, Bermuda.
DHT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for DHT Holdings Inc. To summarize, we found that DHT Holdings Inc ranked in the 60th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 80% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for DHT, they are:
The business' balance sheet reveals debt to be 50% of the company's capital (with equity being the remaining amount). Approximately 73.03% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
DHT Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 24.19% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 8. This value is greater than only 24.02% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GEOS, HFC, NEBLQ, CVX, and FGPR can be thought of as valuation peers to DHT, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
This article was highlighted for PRO subscribers, Seeking Alpha’s service for professional investors. Find out how you can get the best content on Seeking Alpha here. Investment Thesis The tanker trade was very popular earlier this year when we saw a brief oil price war and a significant amount of...
Bang For The Buck on Seeking Alpha | September 25, 2020
DHT Holdings (DHT) issues 23.38M shares of the common stock on the conversion of ~$125M of its outstanding 4.5% convertible senior notes due 2021; conversion price of $5.35, below the last close of $6.21.Stock up 0.64% AHPreviously: DHT Holdings raises dividend by 37% (Aug. 10)...
"The unwinding period is going to be painful. It's happening," warned Michael Fogerty, senior vice president of commercial operations of Diamond S Shipping (NYSE: DSSI ), during a quarterly call on Thursday. Fogerty was referring to the drawdown of crude stocks in Asia that have built up on land and at sea over the past several months. The Asian drawdown hits very large crude carriers (VLCCs, tankers that carry 2 million barrels of oil) on two fronts. Not only is less crude flowing to Asia, but less is flowing on long-haul runs from the Atlantic Basin, slashing average voyage distance. Atlantic Basin Focus "In recent weeks, the Atlantic market has been more active than the Arabian Gulf market in terms of loading VLCCs," said Trygve Munthe, co-CEO of DHT Holdings (NYSE: DHT ), on his com...