Navigator Holdings (NVGS) AI Stock Analysis

• Market Cap: $993.90M
• Dividend Yield: 1.39%
• Average Volume (3M): 360.29K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.79
• Revenue Growth: 6.38%
• EPS Growth: 9.47%
• Country: US
• Employees: 174
• Sector: Energy
• Sector Strength: 68
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.37
• Shares Outstanding: 69,261,600
• 10 Day Avg. Volume: 388,775
• 30 Day Avg. Volume: 360,286
• PEG Ratio: 1.84
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.56
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 7.88
• Enterprise Value/Ebitda: 1.62
• 1Y Price Target: $24.00
• Price Target Upside: 63.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $16.00 ▲(9.07%Upside)

Navigator Holdings is well-positioned with strong financial performance and a positive outlook from recent earnings. Technical indicators support a stable stock performance, while valuation metrics suggest potential undervaluation. The company's robust shareholder returns strategy bolsters its appeal, despite some operational challenges.

Positive Factors

Business Expansion

Navigator completed the ethylene terminal expansion on time and within budget.

Contract Acquisition

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.

Market Position

Navigator now owns 20 of the 45 ethylene ships greater than 15,000 cbm in the world.

Negative Factors

Financial Strategy

Navigator is considering re-domiciling to the UK, which is expected to have a minor effect on taxes and finances.

Investment Risk

Navigator announced the acquisition of three new ethylene ships for $84 million.

Navigator Holdings Business Overview & Revenue Model

Company Description

Navigator 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 Money

Navigator 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 demonstrates strong financial health with robust revenue growth, improved profitability margins, and effective cash flow management. Despite high debt levels, the company's stable balance sheet and strong equity base provide a solid foundation for continued growth.

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.

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.

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.

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
270.42M	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

• Technical Analysis Sentiment: Positive
• Last Price: 14.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 14.67 is above the 20-day moving average (MA) of 14.15, above the 50-day MA of 13.34, and below the 200-day MA of 14.94, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 63.69 is Neutral, neither overbought nor oversold. The STOCH value of 80.02 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LPG	80 Outperform	$1.07B	11.92	8.71%	7.99%	-24.25%	-48.08%
DLNG	79 Outperform	$134.21M	2.69	10.57%	5.33%	-2.37%	32.03%
NVGS	78 Outperform	$993.90M	11.29	7.38%	1.39%	6.38%	9.47%
TNK	75 Outperform	$1.59B	4.92	18.57%	10.89%	-21.27%	-34.25%
FLNG	72 Outperform	$1.31B	12.88	12.69%	12.20%	-3.95%	-2.25%
GLNG	68 Neutral	$4.45B	1,609.85	0.13%	2.35%	-10.89%	-97.48%
Sector *	58 Neutral	$7.53B	3.34	-4.45%	10.13%	0.83%	-49.64%