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Navios Maritime Partners (NMM)
NYSE:NMM
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Navios Maritime Partners (NMM) AI Stock Analysis

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NMM

Navios Maritime Partners

(NYSE:NMM)

Rating:79Outperform
Price Target:
$53.00
â–²(13.08% Upside)
Navios Maritime Partners receives a strong overall score driven by robust financial performance and attractive valuation. The technical analysis supports a positive outlook, though investors should be aware of potential overbought conditions. The earnings call further reinforces the company's strategic direction and effective management, despite some challenges.
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)

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 generates revenue primarily through the leasing of its vessels to shipping companies under time charters and spot market contracts. The company earns revenue from long-term contracts which provide stable cash flows, as well as from spot charters that can offer higher rates during favorable market conditions. Key revenue streams include charter hire payments received for the use of its vessels, and the company benefits from strategic partnerships with major shipping lines and trading companies that require reliable transportation services. Additionally, Navios Maritime Partners may realize gains from vessel sales or acquisitions, depending on market conditions.

Navios Maritime Partners Earnings Call Summary

Earnings Call Date:Aug 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, strategic fleet expansion, effective risk management, and a solid return of capital to shareholders. However, there were notable challenges including a decline in revenue, increased operating expenses, decreased net income, and challenges in the dry bulk sector. Despite these lowlights, the positive aspects such as fleet modernization, increased TCE rates for containers, and effective debt management suggest a mostly favorable outlook.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Navios Maritime Partners reported revenue of $327.6 million, EBITDA of $178.2 million, and net income of $69.9 million for the second quarter of 2025. Earnings per common unit were $2.34.
Fleet Expansion and Modernization
The company acquired 2 new Aframax LR2 tankers for $133 million, with expected delivery in 2027. Additionally, they took delivery of a new Aframax LR2 tanker fixed for $27,446 net per day for the next 5 years.
Effective Risk Management
Swift action was taken in response to OFAC sanctions, terminating contracts for 2 VLCCs and redeploying them into a healthy spot market.
Capital Return to Shareholders
Navios returned $30.8 million to shareholders through dividends and unit repurchases, with $47.2 million still available for further repurchases.
TCE Increase for Container Fleet
The Time Charter Equivalent (TCE) rate for the container fleet increased by 3.6% to $31,316 per day in Q2 2025.
Debt Management and Hedging
29% of debt and bareboat liabilities have fixed interest rates, and the average margin for drawn floating rate debt and bareboat liabilities reduced to 1.9%.
Negative Updates
Decline in Revenue and TCE Rates
Total revenue for Q2 2025 decreased by 4.3% compared to Q2 2024. Combined TCE rate decreased by 1.5% to $23,040 per day.
Increased Operating Expenses
General and administrative expenses increased by $3 million, and vessel operating expenses increased by $9 million due to a 5.6% increase in OpEx days and a 4.5% increase in the combined OpEx rate.
Decreased Net Income
Adjusted net income for Q2 2025 was $64 million, a decrease from $94 million in Q2 2024.
Challenges in the Dry Bulk Sector
The Baltic Dry Index average declined by 30% in the first half of 2025 compared to the first half of 2024.
Company Guidance
During the second quarter of 2025 earnings call for Navios Maritime Partners, the company reported revenue of $327.6 million, EBITDA of $178.2 million, and net income of $69.9 million, with earnings per common unit at $2.34. Navios Partners has a fleet of 173 vessels with an average age of 10 years, spread across three segments and 15 asset classes. The company ended the quarter with $389 million in cash and a net loan-to-value (LTV) ratio of 35.3%. They generated $96 million from selling three vessels and purchased two Aframax LR2 tankers for $133 million, expected to be delivered in 2027. For the remaining six months of 2025, contracted revenue is projected to exceed estimated total cash expenses by $56 million, with 6,838 open and index days offering significant cash-generating opportunities. The company paid a $0.20 dividend per unit annually and repurchased 716,575 common units for $27.8 million, returning a total of $30.8 million in 2025. Additionally, they maintained a strong revenue backlog of $3.1 billion, with an emphasis on addressing market uncertainties and managing interest rate risks.

Navios Maritime Partners Financial Statement Overview

Summary
Navios Maritime Partners demonstrates strong financial performance with significant revenue growth and high gross profit margins. The balance sheet is healthy with a balanced capital structure, though there is room for improvement in net profitability and asset investment.
Income Statement
84
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
72
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.33B1.31B1.21B713.17M226.77M
Gross Profit882.00M859.39M517.30M343.51M55.62M
EBITDA655.31M794.03M896.99M601.75M21.83M
Net Income367.31M433.64M579.25M293.50M-37.54M
Balance Sheet
Total Assets5.67B5.15B4.90B3.62B1.21B
Cash, Cash Equivalents and Short-Term Investments282.45M287.38M157.81M159.47M30.73M
Total Debt2.37B2.13B1.17B1.06B486.86M
Total Liabilities2.57B2.38B2.55B1.85B552.44M
Stockholders Equity3.11B2.77B2.34B-53.78M654.83M
Cash Flow
Free Cash Flow-523.65M95.30M-104.24M-1.71M10.98M
Operating Cash Flow483.48M560.32M506.34M277.17M94.09M
Investing Cash Flow-782.13M-253.01M-316.24M-106.25M-83.85M
Financing Cash Flow349.26M-233.22M-184.45M-32.20M-9.91M

Navios Maritime Partners Technical Analysis

Technical Analysis Sentiment
Positive
Last Price46.87
Price Trends
50DMA
42.19
Positive
100DMA
39.67
Positive
200DMA
41.40
Positive
Market Momentum
MACD
1.44
Negative
RSI
70.39
Negative
STOCH
78.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMM, the sentiment is Positive. The current price of 46.87 is above the 20-day moving average (MA) of 45.28, above the 50-day MA of 42.19, and above the 200-day MA of 41.40, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 70.39 is Negative, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$1.37B4.8814.61%3.98%-7.24%-16.39%
81
Outperform
$1.07B2.8026.40%6.36%4.43%17.82%
80
Outperform
$1.68B3.8013.38%3.69%5.63%-17.54%
79
Outperform
$1.37B4.679.85%0.43%-0.47%-22.25%
74
Outperform
$2.14B17.645.11%4.24%2.95%-61.74%
64
Neutral
$10.74B15.628.14%2.00%2.79%-14.82%
58
Neutral
$1.08B30.763.35%13.42%3.51%-74.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NMM
Navios Maritime Partners
47.78
-3.65
-7.10%
CMRE
Costamare
11.90
2.30
23.96%
DAC
Danaos
94.68
18.56
24.38%
GSL
Global Ship Lease
30.19
8.11
36.73%
SFL
SFL Corporation
8.14
-2.00
-19.72%
SBLK
Star Bulk Carriers
18.93
-0.66
-3.37%
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.Date of analysis: Aug 22, 2025