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Navigator Holdings (NVGS)
NYSE:NVGS
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Navigator Holdings (NVGS) AI Stock Analysis

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NVGS

Navigator Holdings

(NYSE:NVGS)

Rating:76Outperform
Price Target:
$17.50
â–²(7.69% Upside)
Navigator Holdings demonstrates strong financial performance and resilience in the face of geopolitical challenges, supported by strategic initiatives like new vessel orders and share buybacks. The technical indicators suggest moderate momentum, and the valuation is reasonable. The earnings call provided a cautiously optimistic outlook, contributing to a solid overall score.
Positive Factors
Contracts
A second multi-year off-take contract for the expanded portion of the ethylene terminal has been signed.
Earnings
Navigator reported a 4Q earnings beat on higher revenues.
Project Completion
The company completed the ethylene terminal expansion on time and within budget.
Negative Factors
Taxation
Navigator is considering re-domiciling to the UK, which is expected to have a minor effect on taxes and finances.

Navigator Holdings (NVGS) vs. SPDR S&P 500 ETF (SPY)

Navigator Holdings Business Overview & Revenue Model

Company DescriptionNavigator Holdings Ltd. owns and operates a fleet of liquefied gas carriers worldwide. The company provides international and regional seaborne transportation services of liquefied petroleum gas, petrochemical gases, and ammonia for energy companies, industrial users, and commodity traders. As of April 14, 2022, it operated a fleet of 53 semi- or fully-refrigerated liquefied gas carriers. The company was founded in 1997 and is based in London, the United Kingdom.
How the Company Makes MoneyNavigator Holdings generates revenue primarily through the chartering of its fleet of vessels, which transport liquefied gases for clients on a contractual basis. The company typically enters into time charters or voyage charters, allowing it to earn revenue based on the duration of the charter or the specific voyages undertaken. Key revenue streams include long-term contracts with major energy and petrochemical companies, which provide stable cash flow. Additionally, Navigator Holdings benefits from its strategic partnerships and relationships within the energy sector, enabling it to secure consistent business. Economic factors such as global demand for LNG and LPG, as well as fluctuations in shipping rates, also play a significant role in influencing the company's earnings.

Navigator Holdings Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant resilience and strategic advancements despite facing considerable geopolitical challenges. The company demonstrated strong financial management, strategic vessel orders, and a recovery in terminal throughput. However, the revenue decline and reduced utilization due to geopolitical issues were notable challenges. Overall, the sentiment is cautiously optimistic with a strong outlook for recovery.
Q2-2025 Updates
Positive Updates
Strong Balance Sheet and Capital Structure Optimization
The company maintained a robust balance sheet with $287 million in cash at quarter-end, supported by a $300 million refinancing at the lowest margin ever for Navigator. Additionally, they completed a $50 million share repurchase program, buying back 3.4 million shares at an attractive price.
Resilient EBITDA Performance
Despite geopolitical challenges, the company achieved an adjusted EBITDA of $60 million, demonstrating the resilience of the business.
New Vessel Orders and Contracts
Navigator announced the order of two 51,500 cubic meter dual-fuel ammonia vessels with 5-year time charter contracts, supported by grants and attractive financing.
Ethylene Export Terminal Throughput Recovery
Throughput at the joint venture Ethylene Export Terminal rebounded to 268,000 tons for the quarter, more than 3x Q1 levels, with expectations for continuous firm volumes.
Inclusion in Russell 2000 and Russell 3000 Indexes
Navigator Gas was included in the Russell 2000 and Russell 3000 Indexes, increasing its trading liquidity and expanding its shareholder base.
Negative Updates
Revenue Decline Due to Geopolitical Issues
Q2 revenues were $130 million, down 12% compared to the same period last year, due to customers halting new business amid geopolitical tensions, including U.S. port tariffs and export bans.
Decreased Utilization and TCE Rates
The company experienced reduced utilization of 84% and lower TCE rates of $28,216 per day, attributed to geopolitical impacts on ethylene spot fleet and challenges in ethane exports.
Impact of Export Licenses and Tariffs
The introduction of U.S. ethane export licenses led to disruption in trade, affecting utilization and revenue, although these impacts were temporary.
Company Guidance
During the Navigator Holdings Conference Call for the second quarter of 2025, key metrics and financial results were presented. The company reported revenues of $130 million, a 12% decrease from the previous year, primarily due to geopolitical challenges that impacted trade volumes. Despite this, Navigator Holdings achieved an EBITDA of $72 million and an adjusted EBITDA of $60 million, excluding a $12 million gain from the sale of Navigator Venus. Earnings per share stood at $0.31. The company's cash position was strong at $287 million, supported by a $300 million refinancing at the lowest margin in Navigator's history. Their fleet utilization was 84%, with average TCE rates of $28,216 per day. Looking forward, Navigator expects improved utilization and rates, driven by the resumption of global trade activity. Additionally, they announced new vessel orders and a share buyback program, underscoring their strategic focus on fleet renewal and shareholder returns.

Navigator Holdings Financial Statement Overview

Summary
Navigator Holdings presents a strong financial profile with consistent revenue and profit growth, a stable balance sheet, and robust cash flow generation. While the company has managed its leverage well, the significant debt levels require careful monitoring. The overall financial health is positive, with a solid foundation for future growth and profitability.
Income Statement
85
Very Positive
Navigator Holdings has shown a strong revenue growth trajectory, with a notable increase in total revenue from $301 million in 2019 to $566 million in 2024. The gross profit margin has improved significantly, reflecting enhanced operational efficiency. Net profit margin has also improved, indicating better cost management and profitability. The EBIT and EBITDA margins are robust, showcasing strong earnings performance. Overall, the income statement reflects a healthy financial position with consistent growth and profitability.
Balance Sheet
75
Positive
The company's balance sheet is stable, with a healthy equity ratio indicating a strong equity base relative to total assets. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on Equity (ROE) has improved, reflecting better utilization of shareholder funds to generate profits. However, the total debt remains significant, which could pose a risk if not managed carefully. Overall, the balance sheet is solid, with a good balance between debt and equity.
Cash Flow
80
Positive
Navigator Holdings has demonstrated strong cash flow management, with operating cash flow increasing significantly over the years. The free cash flow has shown substantial growth, indicating effective capital expenditure management and strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of earnings into cash. Overall, the cash flow statement reflects strong liquidity and cash generation, supporting the company's financial stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue566.68M550.74M473.79M403.58M332.50M
Gross Profit319.50M170.51M88.92M90.65M70.52M
EBITDA270.42M264.69M212.09M149.12M118.44M
Net Income85.57M82.25M29.08M-46.79M662.00K
Balance Sheet
Total Assets2.18B2.20B2.10B2.16B1.84B
Cash, Cash Equivalents and Short-Term Investments130.82M149.58M153.19M124.01M59.06M
Total Debt857.28M857.05M810.54M920.50M792.50M
Total Liabilities934.26M969.61M923.33M1.04B897.01M
Stockholders Equity1.21B1.19B1.16B1.11B940.54M
Cash Flow
Free Cash Flow169.12M-17.26M84.54M99.05M42.41M
Operating Cash Flow210.52M174.70M130.31M102.59M44.67M
Investing Cash Flow-100.99M-176.48M35.64M28.25M-16.15M
Financing Cash Flow-126.01M6.81M-134.14M-66.09M-35.38M

Navigator Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.25
Price Trends
50DMA
15.55
Positive
100DMA
14.41
Positive
200DMA
14.88
Positive
Market Momentum
MACD
0.19
Negative
RSI
57.08
Neutral
STOCH
84.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVGS, the sentiment is Positive. The current price of 16.25 is above the 20-day moving average (MA) of 15.89, above the 50-day MA of 15.55, and above the 200-day MA of 14.88, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 57.08 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVGS.

Navigator Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.36B27.984.54%9.75%-42.64%-84.82%
79
Outperform
$1.64B5.9115.78%4.15%-21.71%-37.58%
77
Outperform
$1.42B14.6212.50%11.04%-2.98%-17.51%
76
Outperform
$1.14B12.987.39%1.23%1.19%12.56%
75
Outperform
$131.15M2.6310.57%5.49%-2.37%32.03%
65
Neutral
$15.26B7.313.02%5.32%4.27%-62.52%
51
Neutral
$4.77B1,531.44-0.38%2.24%-2.78%-105.22%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVGS
Navigator Holdings
16.25
0.22
1.37%
GLNG
Golar LNG
44.74
12.59
39.16%
TNK
Teekay Tankers
48.18
-4.84
-9.13%
DLNG
Dynagas LNG Partners
3.57
-0.02
-0.56%
LPG
Dorian LPG
32.16
-2.28
-6.62%
FLNG
FLEX LNG
27.17
3.08
12.79%
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 19, 2025