Navigator Holdings (NVGS) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 1.27%
• Average Volume (3M): 266.85K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.85
• Revenue Growth: 1.19%
• EPS Growth: 12.56%
• Country: US
• Employees: 174
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.14
• Shares Outstanding: 69,261,600
• 10 Day Avg. Volume: 251,688
• 30 Day Avg. Volume: 266,850
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: 8.19
• Enterprise Value/Ebitda: 6.79
• 1Y Price Target: $22.33
• Price Target Upside: 41.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $17.50 ▲(11.04% 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

Cash Flow Management

Strong cash flow management indicates effective capital expenditure and liquidity, supporting long-term financial stability and growth.

Fleet Expansion

New vessel orders enhance fleet capacity and efficiency, positioning the company to capitalize on future demand and strengthen market position.

Strategic Partnerships

Strategic partnerships provide stable revenue streams and competitive advantages, ensuring consistent business and market resilience.

Negative Factors

Revenue Decline

Revenue decline due to geopolitical issues highlights vulnerability to external factors, impacting short-term financial performance and growth.

Geopolitical Challenges

Geopolitical challenges affect fleet utilization and revenue, posing risks to operational efficiency and profitability in the medium term.

Significant Debt Levels

High debt levels can strain financial flexibility, requiring careful management to avoid impacting long-term financial health and growth potential.

Navigator Holdings Business Overview & Revenue Model

Company Description

Navigator 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 Money

Navigator 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 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

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

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

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 15.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 15.76 is below the 20-day moving average (MA) of 16.29, below the 50-day MA of 16.08, and above the 200-day MA of 14.92, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 20.64 is Neutral, 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
FLNG	77 Outperform	$1.36B	14.01	12.50%	11.67%	-2.98%	-17.51%
NVGS	76 Outperform	$1.09B	12.50	7.39%	1.27%	1.19%	12.56%
TNK	76 Outperform	$1.73B	6.23	15.78%	3.89%	-21.71%	-37.58%
DHT	75 Outperform	$1.88B	9.93	17.90%	6.58%	-8.89%	21.28%
LPG	72 Outperform	$1.23B	25.07	4.54%	10.88%	-42.64%	-84.82%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GLNG	51 Neutral	$4.20B	1,531.44	-0.38%	2.54%	-2.78%	-105.22%