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Navigator Holdings Ltd (NVGS)
:NVGS
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Navigator Holdings
(NYSE:NVGS)
72Outperform
Positive Factors
Earnings
Navigator reported a 4Q earnings beat on higher revenues.
Fleet Expansion
The company announced the acquisition of three new ethylene ships for $84 million.
Project Expansion
The company completed the ethylene terminal expansion on time and within budget.
Negative Factors
Financing
Navigator's management is evaluating a new financing package to secure additional off-take.
Re-domiciling
Navigator is considering re-domiciling to England and Wales to be closer to offices, operations, and customers.
Tax and Finance
Navigator is considering re-domiciling to the UK, which is expected to have a minor effect on taxes and finances.
Navigator Holdings (NVGS) vs. S&P 500 (SPY)
Market Cap
$878.23M
Dividend Yield1.58%
Average Volume (3M)364.02K
Price to Earnings (P/E)10.6
Beta (1Y)0.85
Revenue Growth2.89%
EPS Growth8.17%
CountryUS
Employees174
SectorEnergy
Sector Strength53
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.19
Shares Outstanding69,261,350
10 Day Avg. Volume519,532
30 Day Avg. Volume364,023
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)N/A
Price to Sales (P/S)1.85
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.75Price Target Upside71.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Navigator Holdings Business Overview & Revenue Model
Company DescriptionNavigator Holdings Ltd. (NVGS) is a leading international owner and operator of handysize liquefied gas carriers. The company specializes in the seaborne transportation of liquefied petroleum gas (LPG), petrochemical gases, and ammonia. With a modern fleet of sophisticated vessels, Navigator Holdings serves a global customer base, providing efficient and reliable shipping services across diverse geographic markets. Their operations are focused on the safe and environmentally responsible transport of gas products, catering to the needs of both industrial and residential consumers worldwide.
How the Company Makes MoneyNavigator Holdings generates revenue primarily through the chartering of its fleet of liquefied gas carriers. The company operates under a time charter model, where it leases its vessels to major oil and gas companies, petrochemical manufacturers, and energy trading firms for fixed periods. The charter contracts guarantee a steady stream of income, providing predictable cash flows. Additionally, Navigator Holdings engages in spot charters, where vessels are hired for single voyages at prevailing market rates, allowing the company to capitalize on favorable market conditions. Strategic partnerships with key industry players, as well as its focus on maintaining a versatile and modern fleet, further enhance its revenue-generating capabilities. The company's earnings are influenced by factors such as global demand for LPG and petrochemical gases, shipping rates, and operational efficiencies.
Navigator Holdings Financial Statement Overview
Summary
Navigator Holdings shows robust financial health with strong revenue growth, improved profitability margins, and effective cash flow management. The balance sheet remains strong, but high total debt levels present potential risks.Income Statement
Navigator Holdings demonstrated strong revenue growth, with a notable increase from $550.7 million in 2023 to $566.7 million in 2024, yielding a revenue growth rate of 2.9%. Gross profit margin improved significantly from 30.96% in 2023 to 56.37% in 2024, indicating enhanced operational efficiency. The net profit margin remained robust at 15.10% in 2024, slightly higher than 14.94% the previous year. EBIT margin increased from 24.92% to 25.27%, while EBITDA margin improved from 48.06% to 49.93%, reflecting well-managed operational costs. Overall, the income statement reflects strong profitability and growth.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio remained stable at approximately 0.71 in both 2023 and 2024, indicating a balanced leverage position. Return on Equity (ROE) improved from 6.91% in 2023 to 7.10% in 2024, driven by increased net income. The equity ratio stood at 55.27% in 2024, up from 54.03% in 2023, showcasing a strong equity base. While the company maintains healthy equity levels and leverage, potential risks include high total debt levels which could affect future financing flexibility.75
Positive
Cash Flow
Navigator Holdings shows a strong cash flow position with operating cash flow rising from $174.7 million in 2023 to $210.5 million in 2024. The free cash flow improved significantly from a negative $17.26 million to a positive $169.12 million due to increased operating cash flow and reduced capital expenditures. Free cash flow to net income ratio improved, indicating better cash generation relative to net earnings. The company's cash flow management is commendable, although the negative investing cash flow might suggest high capital investment activities.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 566.68M | 550.74M | 473.79M | 403.58M | 332.50M | Gross Profit |
| 319.50M | 170.51M | 88.92M | 90.65M | 70.52M | EBIT |
| 143.18M | 137.23M | -70.51M | 56.42M | 41.75M | EBITDA |
| 282.91M | 264.69M | 212.09M | 149.12M | 118.44M | Net Income Common Stockholders |
| 85.57M | 82.25M | 29.08M | -46.79M | 662.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 130.82M | 149.58M | 153.19M | 124.01M | 59.06M | Total Assets |
| 2.18B | 2.20B | 2.10B | 2.16B | 1.84B | Total Debt |
| 857.28M | 857.05M | 810.54M | 920.50M | 792.50M | Net Debt |
| 726.46M | 698.81M | 657.35M | 796.49M | 733.45M | Total Liabilities |
| 934.26M | 969.61M | 923.33M | 1.04B | 897.01M | Stockholders Equity |
| 1.21B | 1.19B | 1.16B | 1.11B | 940.54M |
| Cash Flow | Free Cash Flow | |||
| 169.12M | -17.26M | 84.54M | 99.05M | 42.41M | Operating Cash Flow |
| 210.52M | 174.70M | 130.31M | 102.59M | 44.67M | Investing Cash Flow |
| -100.99M | -176.48M | 35.64M | 28.25M | -16.15M | Financing Cash Flow |
| -126.01M | 6.81M | -134.14M | -66.09M | -35.38M |
Navigator Holdings Technical Analysis
Negative
12.68
Price Trends
14.18
Negative
15.03
Negative
15.54
Negative
Market Momentum
-0.53
Negative
45.80
Neutral
84.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVGS, the sentiment is Negative. The current price of 12.68 is below the 20-day moving average (MA) of 12.73, below the 50-day MA of 14.18, and below the 200-day MA of 15.54, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 84.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVGS.
Navigator Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.37B | 3.43 | 23.93% | 2.51% | -16.70% | -24.06% | |
79 Outperform | $887.34M | 5.29 | 15.72% | ― | -24.25% | -48.08% | |
72 Outperform | $878.23M | 10.64 | 7.14% | 1.58% | 2.89% | 8.17% | |
72 Outperform | $1.24B | 10.69 | 14.23% | 12.89% | -3.95% | -2.25% | |
69 Neutral | $126.78M | 3.30 | 10.37% | 2.83% | -2.54% | 34.80% | |
62 Neutral | $3.99B | 78.15 | 2.43% | 2.62% | -12.75% | ― | |
55 Neutral | $7.05B | 3.47 | -6.10% | 6.00% | -0.44% | -51.04% |
* Energy Sector Average
Performance Comparison
NVGS
Navigator Holdings
12.68
-2.10
-14.21%
GLNG
Golar LNG
38.13
13.63
55.63%
TNK
Teekay Tankers
39.84
-13.76
-25.67%
DLNG
Dynagas LNG Partners
3.46
-0.03
-0.86%
LPG
Dorian LPG
20.73
-15.72
-43.13%
FLNG
FLEX LNG
23.28
0.30
1.31%
Navigator Holdings Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -7.71% | Next Earnings Date: May 26, 2025
Earnings Call Sentiment Positive
Navigator Holdings demonstrated strong financial performance with revenue growth, high vessel utilization, and successful bond issuance. However, challenges such as softer ethylene demand and geopolitical tensions present potential risks. The overall sentiment is slightly positive, with significant achievements outweighing the challenges.Highlights
Revenue Growth and EBITDA Increase
Fourth quarter revenue increased by 2% year-over-year, with adjusted EBITDA reaching over $73 million, up from $72 million the previous year and $68 million in Q3.
Strong Balance Sheet and Cash Position
The company maintains a strong balance sheet with a robust cash position despite significant repayments, including a $50 million terminal expansion project installment.
Successful Bond Issuance
Issued $100 million of unsecured bonds at 7.25%, marking the tightest spread for a dollar-denominated shipping bond in the Nordic market since 2008.
High Vessel Utilization
Achieved over 92% vessel utilization in Q4, higher than both Q3 and the same period the previous year.
Ethylene Terminal Expansion Completed
The expansion was completed on time and on budget, increasing the terminal's capacity significantly.
Capital Return to Shareholders
Continued capital return with a $0.05 fixed dividend and share buyback totaling 25% of net income.
Additional Vessel Acquisitions
Acquired three handysize ethylene carriers for $83.9 million, expanding the fleet to support terminal operations.
Lowlights
Softer Ethylene Transport Demand
The market was temporarily hit by softer ethylene transport demand, affecting performance.
Challenges in Ethylene Throughput
Despite an increase from Q3, throughput at the joint venture Ethylene export terminal was lower than Q4 2023 and below capacity due to US cracker turnarounds.
Geopolitical Tensions Impacting Forecasting
Geopolitical tensions reduce the ability to do long-term forecasting.
Depressed Ethylene Arbitrage
The ethylene arbitrage remains tight due to higher domestic prices, affecting export activity.
Company Guidance
During the Navigator Holdings conference call for the Fourth Quarter 2024, the company provided detailed guidance on various metrics. The company reported an increase in revenues by 2% year-over-year, with an adjusted EBITDA of $73.4 million for the quarter, surpassing the previous year's $72 million and the third quarter's $68 million. The balance sheet remained strong, despite a $50 million payment for terminal expansion and other debt repayments. The company issued $100 million in new unsecured bonds at 7.25% and maintained average TCE rates at $28,341 per day with utilization above 92%. Ethylene export terminal throughput was 159,000 tons, impacted by US cracker turnarounds, but the terminal expansion was completed on time and budget. The company also acquired three handysize ethylene carriers for $83.9 million and exercised options for two new mid-size ethylene carriers. Looking ahead, Navigator Holdings expects high vessel utilization and robust TCE rates in Q1 2025 and plans to continue its capital return through dividends and share buybacks.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.