Asset Breakdown
4.9 B
Assets Non Current
Current Assets
| Total Assets | 5.28 Billion | |
| Current Assets | 334.93 Million | |
| Assets Non Current | 4.95 Billion | |
| Goodwill | 65.35 Million |
Continue to hold Navios (USA Stocks:NMM) based on its current debt obligations?
 | By Rifka Kats | Macroaxis Story |
As we approach the September payouts, Navios Maritime Partners, a key player in the Marine Shipping industry, presents a potentially lucrative investment opportunity. Despite reporting a loss in free cash flow of 104.2M and net interest income of 82.2M, the company has demonstrated robust financial health with a total stockholder equity of 2.3B and cash and short-term investments amounting to 157.8M. The company's total current liabilities stand at 617.7M, with short and long-term debt totaling 1.2B. Despite these liabilities, Navios Maritime Partners has managed to maintain a net income from continuing operations of 579.2M. With a forward dividend yield of 0.0085 and an estimated analyst target price of 40, investors could see substantial returns on their investment in the coming months. Navios Maritime Partners is set to release its earnings report tomorrow. The forthcoming quarterly report is anticipated on August 17, 2023. At present, Navios Maritime's Invested Capital remains very stable in comparison to the previous year. Last year, Navios Maritime reported an Invested Capital of $6.28 billion. As of August 13, 2023, the average Invested Capital is expected to increase to approximately $5.9 billion, while the Asset Turnover is likely to decrease to 0.26. Given the excitement around the marine space, it's appropriate to consider Navios Maritime Partners as a unique investment alternative.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Vlad Skutelnik
Investing in Navios Maritime Partners, a company in the Marine Shipping industry, offers potential for high returns, particularly ahead of the September payouts. The company has a Jensen Alpha of 0.0188, indicating that it has outperformed the market, taking into account the inherent risk. However, the firm has a substantial total liability of $2.6 billion, which could potentially limit its financial flexibility. This high leverage is further underscored by the firm's negative net interest income, a loss of $82.2 million, which suggests that the cost of servicing its debt exceeds the income generated from its assets. Despite these risks, the firm's operating income of $513 million suggests that it has the capacity to meet its financial obligations and deliver returns to investors.
Progressive assessment
Navios Maritime Partners carries a debt of $1.17 billion, with a debt to equity (D/E) ratio of 0.77. This ratio is acceptable within its current industry classification. However, the company's current ratio stands at 0.92, indicating that it may lack sufficient short-term capital to meet its financial obligations when they are due. While debt can support Navios Maritime's operations, it could lead to problems if the company struggles to pay it off, either through raising new capital or generating free cash flow. In such a scenario, Navios Maritime's shareholders could potentially lose their entire investment if the company fails to meet its legal debt repayment obligations. On the other hand, it's not uncommon for companies like Navios Maritime Partners to issue additional shares at discounted prices, which dilutes the value for existing shareholders. In this context, debt can be a more effective tool for Navios Maritime to invest in high-return growth opportunities. When evaluating Navios Maritime's debt situation, it's important to consider it in conjunction with the company's cash and equity positions.Navios Maritime financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Navios Maritime, including all of Navios Maritime's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Navios Maritime assets, the company is considered highly leveraged. Understanding the composition and structure of overall Navios Maritime debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.How important is Navios Maritime's Liquidity
Navios Maritime financial leverage refers to using borrowed capital as a funding source to finance Navios Maritime Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Navios Maritime financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Navios Maritime's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Navios Maritime's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Navios Maritime's total debt and its cash.
Breaking it down
The firm reported the last year's revenue of 1.21 B. Total Income to common stockholders was 579.25 M with profit before taxes, overhead, and interest of 1.03 B.
Navios Maritime Partners, a key player in the Marine Shipping industry, is poised to offer potential returns on investment ahead of its September payouts. The company boasts a net income of a whopping $579.25 million, alongside an operating income of $513 million. The firm's total assets stand at an impressive $4.9 billion, with non-current assets totaling $4.6 billion, and property, plant, and equipment net at $4.1 billion. Despite a current ratio of 0.94X, slightly under the ideal benchmark of 1, Navios Maritime Partners maintains a healthy return on equity of 27.32 and a return on assets of 0.0667.Their price to book ratio is at 0.33X, indicating a potentially undervalued stock. Investors should note that the company's total debt is $1.17 billion, with long-term debt totaling $1.6 billion. However, the debt to equity ratio is fairly low at 0.77%, suggesting the firm's financial stability. Navios Maritime Partners' shares are also significantly owned by institutions, at 11.02%, hinting at the confidence of major financial organizations in the company's potential. With a forward dividend yield of 0.0085 and a last dividend paid of 0.2, shareholders can anticipate favorable returns in the upcoming September payouts. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Navios Maritime Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.