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Navigator Holdings Ltd (NVGS)
:NVGS
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Navigator Holdings
(NYSE:NVGS)
Rating:79Outperform
Price Target:
$17.50
â–²(14.45%Upside)
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.
Infrastructure Expansion
The company completed the ethylene terminal expansion on time and within budget.
Negative Factors
Corporate Relocation
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)
Market Cap
$1.07B
Dividend Yield1.29%
Average Volume (3M)636.49K
Price to Earnings (P/E)12.2
Beta (1Y)0.80
Revenue Growth6.38%
EPS Growth9.47%
CountryUS
Employees174
SectorEnergy
Sector Strength50
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.37
Shares Outstanding69,261,600
10 Day Avg. Volume542,307
30 Day Avg. Volume636,488
Financial Highlights & Ratios
PEG Ratio1.78
Price to Book (P/B)0.87
Price to Sales (P/S)0.00
P/FCF Ratio13.48
Enterprise Value/Market Cap1.63
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit8.10
Enterprise Value/Ebitda1.66
Forecast
1Y Price Target
$24.00Price Target Upside56.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Navigator Holdings Business Overview & Revenue Model
Company DescriptionNavigator Holdings (NVGS) is a leading international owner and operator of handysize liquefied gas carriers. The company operates within the maritime transportation sector, focusing on the seaborne transportation of liquefied petroleum gas (LPG), petrochemical gases, and ammonia. With a fleet of specialized vessels, Navigator Holdings serves a global customer base, including major oil and gas producers, industrial users, and commodity traders.
How the Company Makes MoneyNavigator Holdings generates revenue primarily through the leasing of its fleet of liquefied gas carriers to customers under time charter agreements, voyage charters, and contracts of affreightment. The company's key revenue streams include charter hire income, which is earned by renting out vessels for specific periods, and freight revenue, derived from transporting gas products on behalf of clients. Additionally, Navigator Holdings engages in strategic partnerships and joint ventures to expand its market reach and optimize its fleet utilization. The company's earnings are significantly influenced by global demand for LPG, petrochemical gases, and ammonia, as well as the prevailing charter rates in the maritime transportation market.
Navigator Holdings Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 11.93%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in revenue growth, financial strength, and shareholder returns. However, challenges in terminal throughput and market disruptions due to tariffs also featured prominently. The company remains optimistic about future performance with improving market conditions and strategic maneuvers.Q1-2025 Updates
Positive Updates
Record Quarterly Revenue
Navigator Holdings reported a 13% increase in revenue for Q1 2025 compared to the same period last year, marking a new record for quarterly revenue driven by high utilization and higher rates.
Strong Financial Position
The company reported a robust cash position even after investments, with a successful $300 million refinancing at the lowest margins ever for the company.
Shareholder Returns
The company announced a $0.05 fixed dividend and a share buyback totaling 25% of net income, along with a new $50 million share repurchase authorization.
High Utilization and TCE Rates
Navigator achieved utilization above 92% and average Q1 TCE rates of $30,475, which is 8% higher than both the previous quarter and the same period last year.
Fleet Expansion
The company expanded its fleet by acquiring three secondhand ethylene-capable vessels and sold an older vessel for a gain of almost $13 million.
Positive Market Outlook
Improvement in vessel utilization and high throughput expected at Morgan's Point, with a favorable supply picture for handysize vessels.
Negative Updates
Decline in Ethylene Terminal Throughput
Throughput at the joint venture Ethylene Export Terminal was limited to 86,000 tons for the quarter, significantly below capacity due to U.S. cracker turnarounds.
Impact of Chinese Tariffs
Temporary tariffs by China on U.S. energy products caused disruptions, including the cancellation of three handysize ethane cargoes to China.
April Utilization Challenges
April utilization was weaker than usual due to cargo cancellations and some customers pausing new vessel fixtures.
Increased Voyage and Operating Expenses
Voyage expenses increased substantially, with operating expenses also up compared to the first quarter of 2024.
Company Guidance
During the Navigator Holdings conference call for the first quarter of 2025, the company reported a 13% increase in quarterly revenue, a record high, driven by high utilization and rates. The adjusted EBITDA for Q1 was $73 million, consistent with the prior year and quarter. The company strengthened its balance sheet with a $300 million refinancing and a $40 million bond tap, enhancing its cash position. The time charter equivalent (TCE) rates averaged $30,475, 8% higher than the previous quarter, with utilization exceeding 92%. Despite a challenging environment, including tariffs and market volatility, Navigator remained resilient, supported by a diversified customer base and strong balance sheet. The company announced a $0.05 dividend and a significant share repurchase program, reflecting robust shareholder returns. The Ethylene Export Terminal experienced low throughput due to U.S. cracker turnarounds, but expectations for higher volumes are set for Q2. Additionally, Navigator expanded its fleet by acquiring three secondhand vessels and selling an older vessel, aligning with its fleet renewal strategy.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. The company's significant debt levels require careful monitoring, but overall financial health is positive, supporting future growth.Income Statement
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.85
Very Positive
Balance Sheet
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.75
Positive
Cash Flow
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.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 |
| EBITDA | 270.42M | 264.69M | 212.09M | 149.12M | 118.44M |
| Net Income | 85.57M | 82.25M | 29.08M | -46.79M | 662.00K |
Balance Sheet | |||||
| Total Assets | 2.18B | 2.20B | 2.10B | 2.16B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 130.82M | 149.58M | 153.19M | 124.01M | 59.06M |
| Total Debt | 857.28M | 857.05M | 810.54M | 920.50M | 792.50M |
| 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
Positive
15.29
Price Trends
14.27
Positive
13.84
Positive
14.87
Positive
Market Momentum
0.34
Negative
60.05
Neutral
83.54
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 15.29 is above the 20-day moving average (MA) of 14.87, above the 50-day MA of 14.27, and above the 200-day MA of 14.87, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 60.05 is Neutral, neither overbought nor oversold. The STOCH value of 83.54 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.21B | 12.98 | 8.71% | 7.05% | -36.98% | -71.55% | |
79 Outperform | $1.07B | 12.16 | 7.38% | 1.29% | 6.38% | 9.47% | |
77 Outperform | $1.52B | 4.65 | 18.57% | 11.38% | -21.27% | -34.25% | |
74 Outperform | $131.51M | 2.64 | 10.57% | 5.34% | -2.37% | 32.03% | |
72 Outperform | $1.20B | 11.81 | 12.69% | 13.30% | -3.95% | -2.25% | |
64 Neutral | $4.30B | 1,555.30 | 0.13% | 2.44% | -10.89% | -97.48% | |
52 Neutral | C$2.96B | -1.04 | -3.46% | 5.84% | 3.01% | -47.13% |
* Energy Sector Average
Performance Comparison
NVGS
Navigator Holdings
15.29
-1.65
-9.74%
GLNG
Golar LNG
40.48
7.12
21.34%
TNK
Teekay Tankers
43.43
-17.18
-28.35%
DLNG
Dynagas LNG Partners
3.65
-0.17
-4.45%
LPG
Dorian LPG
28.03
-7.47
-21.04%
FLNG
FLEX LNG
21.98
-2.20
-9.10%
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.