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Navios Maritime Partners (NMM)
NYSE:NMM
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Navios Maritime Partners
(NYSE:NMM)
Rating:78Outperform
Price Target:
$45.00
â–²(19.97%Upside)
Positive Factors
Earnings
Navios Maritime Partners reported strong quarterly results, with earnings per share and EBITDA exceeding market expectations.
Fleet Expansion
The company has expanded its fleet by taking delivery of four new ships, contributing to a robust charter backlog.
Free Cash Flow
Navios generates significant free cash flow, supported by its $3.65 billion revenue backlog, that justifies a much higher share price.
Negative Factors
Market Volatility
Despite strong performance, the volatile nature of the shipping markets poses a risk to more predictable earnings.
Valuation
Navios is still deeply undervalued from an asset value perspective but more importantly on free cash flow.
Navios Maritime Partners (NMM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.10B
Dividend Yield0.53%
Average Volume (3M)84.64K
Price to Earnings (P/E)3.4
Beta (1Y)1.01
Revenue Growth0.28%
EPS Growth-17.08%
CountryUS
Employees186
SectorIndustrials
Sector Strength88
IndustryMarine Shipping
Share Statistics
EPS (TTM)1.58
Shares Outstanding29,194,208
10 Day Avg. Volume86,379
30 Day Avg. Volume84,637
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio-2.42
Enterprise Value/Market Cap1.91
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit2.38
Enterprise Value/Ebitda0.68
Forecast
1Y Price Target
$80.00Price Target Upside113.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Navios Maritime Partners Business Overview & Revenue Model
Company DescriptionNavios Maritime Partners L.P. owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. The company offers seaborne transportation services for a range of liquid and dry cargo commodities, including crude oil, refined petroleum, chemicals, iron ore, coal, grain, fertilizer, and containers, as well as provides its vessels under short, medium, and longer-term charters. It operates a fleet of 26 Panamax vessels, 24 Capesize vessels, four Ultra-Handymax vessels, 47 containerships, and 45 tankers. Olympos Maritime Ltd. serves as the general partner of Navios Maritime Partners L.P. The company was founded in 2007 and is based in Monaco.
How the Company Makes MoneyNavios Maritime Partners primarily generates revenue through the chartering of its vessels to clients under fixed-rate contracts. These contracts can be short-term or long-term, and they provide stable and predictable cash flows. The company's fleet consists of dry bulk vessels, which transport bulk commodities such as iron ore and coal, and tanker vessels that transport liquid cargoes like crude oil and petroleum products. Earnings are influenced by market rates for shipping services, fleet utilization rates, and operational efficiency. Additionally, NMM benefits from strategic partnerships and alliances within the maritime industry, enabling it to optimize routes and reduce operational costs.
Navios Maritime Partners Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 5.66%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong contract backlog, positive cash flow outlook, and effective risk management strategies, but was tempered by decreased revenue and net income, alongside increased operating expenses and global trade uncertainties due to tariffs.Q1-2025 Updates
Positive Updates
Strong Contract Backlog
Navios Partners has a contract backlog of $3.4 billion, providing financial visibility and stability.
Positive Cash Flow Outlook
Contracted revenue exceeds total cash expenses by $12.5 million for the remaining nine months of 2025.
Fleet Modernization
Navios Partners is renewing its fleet with energy-efficient vessels, including new deliveries of dual-fuel containerships and tankers.
Capital Return to Shareholders
Navios Partners returned $17.6 million to shareholders through dividends and buybacks in 2025.
Interest Rate Risk Management
30% of the company’s long-term debt is hedged at a fixed interest rate of 5.5%.
Negative Updates
Revenue Decline
Total revenue for Q1 2025 decreased by 4.6% compared to the same period in 2024, primarily due to lower fleet time charter equivalent rates and available days.
Increased Operating Expenses
Vessel operating expenses increased by 4.8%, contributing to a decline in adjusted EBITDA.
Impact of Global Tariffs
The uncertainty due to U.S. tariffs and their impact on global trade, especially on containers, adds a layer of complexity to future operations.
Decreased Net Income
Adjusted net income for Q1 2025 decreased by $24 million compared to Q1 2024.
Company Guidance
During Navios Maritime Partners' First Quarter 2025 Earnings Conference Call, significant guidance and financial metrics were provided. For Q1 2025, Navios reported revenue of $304.1 million, EBITDA of $147.6 million, and net income of $41.7 million, with earnings per common unit at $1.38. The company highlighted a substantial contract backlog of $3.4 billion and noted that contracted revenue exceeds total cash expenses by $12.5 million for the remaining nine months of 2025. Navios also emphasized its strategic financial management, including maintaining $343 million in cash, a net loan-to-value (LTV) ratio of 35.2%, and managing interest rate risks through fixed cost financing, with 30% of long-term debt at a fixed interest rate of 5.5%. The fleet consists of 174 vessels with an average age of 9.9 years, and the company has been actively renewing its fleet, selling three older vessels and acquiring new ones. The call underscored the challenges presented by global economic uncertainties, such as U.S. tariffs and geopolitical tensions, while affirming Navios' focus on leveraging contracted income, maintaining liquidity, and optimizing capital allocation, including share repurchases and a dividend program.Navios Maritime Partners Financial Statement Overview
Summary
Navios Maritime Partners demonstrates strong revenue growth and profitability. The balance sheet is healthy with a good equity position and manageable leverage. However, there are areas for improvement in net profitability and investment strategy, as indicated by the decrease in net profit margin and lack of capital expenditure.Income Statement
Navios Maritime Partners has demonstrated significant revenue growth over the past few years, with an impressive increase from $226M in 2020 to over $1.33B in 2024. The gross profit margin improved substantially, reaching approximately 83.2% in 2024, indicating efficient cost management. The EBIT margin for 2024 stands at 50.7%, showcasing strong operating performance. However, net profit margin slightly decreased to 27.5% from 33.2% in the previous year, suggesting areas for improvement in net profitability.84
Very Positive
Balance Sheet
The company's balance sheet shows a healthy equity position with stockholders' equity increasing to $3.11B in 2024. The debt-to-equity ratio is 0.69, indicating a balanced capital structure. Return on equity (ROE) was 11.8% in 2024, suggesting good returns for shareholders. However, the equity ratio is at 54.8%, indicating moderate leverage which could be a potential risk if not managed carefully.78
Positive
Cash Flow
Operating cash flow remains robust at $483M in 2024, with a positive free cash flow of the same amount, reflecting strong cash generation capabilities. The free cash flow to net income ratio is 1.32, indicating efficient cash conversion. However, there was a decrease in operating cash flow from the previous year, and capital expenditure remains at zero, which may suggest underinvestment in asset growth or maintenance.72
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.33B | 1.31B | 1.21B | 713.17M | 226.77M |
| Gross Profit | 882.00M | 859.39M | 517.30M | 343.51M | 55.62M |
| EBITDA | 655.31M | 794.03M | 896.99M | 601.75M | 21.83M |
| Net Income | 367.31M | 433.64M | 579.25M | 293.50M | -37.54M |
Balance Sheet | |||||
| Total Assets | 5.67B | 5.15B | 4.90B | 3.62B | 1.21B |
| Cash, Cash Equivalents and Short-Term Investments | 282.45M | 287.38M | 157.81M | 159.47M | 30.73M |
| Total Debt | 2.37B | 2.13B | 1.17B | 1.06B | 486.86M |
| Total Liabilities | 2.57B | 2.38B | 2.55B | 1.85B | 552.44M |
| Stockholders Equity | 3.11B | 2.77B | 2.34B | -53.78M | 654.83M |
Cash Flow | |||||
| Free Cash Flow | -523.65M | 95.30M | -104.24M | -1.71M | 10.98M |
| Operating Cash Flow | 483.48M | 560.32M | 506.34M | 277.17M | 94.09M |
| Investing Cash Flow | -782.13M | -253.01M | -316.24M | -106.25M | -83.85M |
| Financing Cash Flow | 349.26M | -233.22M | -184.45M | -32.20M | -9.91M |
Navios Maritime Partners Technical Analysis
Negative
37.51
Price Trends
37.89
Negative
38.55
Negative
44.76
Negative
Market Momentum
-0.13
Positive
41.06
Neutral
14.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMM, the sentiment is Negative. The current price of 37.51 is below the 20-day moving average (MA) of 39.17, below the 50-day MA of 37.89, and below the 200-day MA of 44.76, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NMM.
Navios Maritime Partners Risk Analysis
Navios Maritime Partners disclosed 81 risk factors in its most recent earnings report. Navios Maritime Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Navios Maritime Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $945.68M | 2.51 | 27.25% | 7.98% | 3.94% | 19.85% | |
78 Outperform | $1.10B | 3.41 | 11.19% | 0.53% | 0.28% | -17.08% | |
76 Outperform | $2.01B | 8.66 | 11.09% | 1.16% | 25.60% | -9.32% | |
75 Outperform | $1.08B | 3.68 | 12.57% | 5.05% | 17.77% | -5.90% | |
71 Outperform | $1.60B | 3.59 | 14.14% | 3.89% | 4.93% | -17.08% | |
65 Neutral | $10.65B | 15.49 | 5.57% | 1.97% | 2.71% | -26.32% | |
62 Neutral | $1.23B | 20.41 | 5.09% | 12.77% | 6.68% | -57.55% |
* Industrials Sector Average
Performance Comparison
NMM
Navios Maritime Partners
37.51
-14.67
-28.11%
CMRE
Costamare
8.98
-3.14
-25.91%
DAC
Danaos
85.85
-3.04
-3.42%
GSL
Global Ship Lease
26.17
-0.87
-3.22%
SFL
SFL Corporation
8.40
-4.12
-32.91%
SBLK
Star Bulk Carriers
17.38
-5.74
-24.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.