Navios Maritime Partners L.P. Shares Can Sail Higher Despite Storm Clouds

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Navios Maritime Partners is ranked the 10th largest company in the marine shipping industry with 176 vessels of all types.Navios stock has more than doubled in price over the past years and has ...

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Shares Can Sail Higher Despite Storm Clouds","media":"seekingalpha","content":"<div>\n<p>Navios Maritime Partners is ranked the 10th largest company in the marine shipping industry with 176 vessels of all types.Navios stock has more than doubled in price over the past years and has ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707578-navios-maritime-partners-lp-shares-can-sail-higher-despite-storm-clouds\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Navios Maritime Partners L.P. Shares Can Sail Higher Despite Storm Clouds</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNavios Maritime Partners L.P. Shares Can Sail Higher Despite Storm Clouds\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-29 14:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4707578-navios-maritime-partners-lp-shares-can-sail-higher-despite-storm-clouds><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Navios Maritime Partners is ranked the 10th largest company in the marine shipping industry with 176 vessels of all types.Navios stock has more than doubled in price over the past years and has ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707578-navios-maritime-partners-lp-shares-can-sail-higher-despite-storm-clouds\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1366192091.USD","symbol_name":"ALLIANZ US EQUITY PLUS \"AM\" (USD) INC","start_time":0,"source_url":"https://seekingalpha.com/article/4707578-navios-maritime-partners-lp-shares-can-sail-higher-despite-storm-clouds","article_id":"2455684473","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/599101372/image_599101372.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2455684473","pubTimestamp":1722234505,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Navios Maritime Partners is ranked the 10th largest company in the marine shipping industry with 176 vessels of all types.Navios stock has more than doubled in price over the past years and has potent","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1366192091.USD":"ALLIANZ US EQUITY PLUS \"AM\" (USD) INC","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","BK4588":"碎股","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","BK4207":"综合性银行","NMM":"Navios Maritime Partners","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU0072461881.USD":"BGF US BASIC VALUE \"A2\" ACC","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","BK4504":"桥水持仓","BK4021":"海运","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0106831901.USD":"贝莱德世界金融基金A2","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","BK6522":"化石燃料股","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU2417539215.USD":"ALLIANZ GLOBAL INCOME \"AMF\" (USD) INC","BK4161":"工业机械","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","LU2456880835.USD":"ALLIANZ GLOBAL INCOME \"AT\" (USD) ACC","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","BK6027":"贸易公司与经销商","LU2462157665.USD":"ALLIANZ GLOBAL INCOME \"A\" (USD) INC","NM":"Navios海事控股","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","BK4566":"资本集团","LU0162691827.USD":"BGF US BASIC VALUE \"A4\" INC","B":"巴恩斯"},"translate_title":"尽管乌云密布，Navios Maritime Partners L.P.股价仍能走高","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"B":1,"NMM":1,"NM":1,"QSD.SI":0.9},"content_text":"Navios Maritime Partners is ranked the 10th largest company in the marine shipping industry with 176 vessels of all types.Navios stock has more than doubled in price over the past years and has potential to move higher.The global marine vessel market is projected to grow. Freight rates are also forecast to increase. We rate the stock a Moderate Buy opportunity.Navios has positive financial metrics and potential, despite risks such as higher costs and delivery interruptions.   Viktor Cvetkovic/iStock via Getty Images Overview Our mid-year articles about investing opportunities in marine cargo shipping companies cautioned that investor enthusiasm at the beginning of 2024 is ebbing mid-year. Marine shipping stocks were among the best performing this year.   Marine Shipping Stocks vs S&P 500 (Yahoo Finance) Early investors in Monaco-based Navios Maritime Partners L.P. Common Units (NYSE:NMM) made a great choice. The stock is up 175% over 5 years, +104% over the last 12 months, and +69% YTD. Short interest is a scant 0.42%. In our opinion, Navios remains one of the better investment opportunities in the marine shipping industry over the next year. We rate the stock as a Moderate Buy in the mid-$40s with the potential to climb 25% higher over the next year. Profile Navios is a nearly all-purpose cargo shipping company. The company owns 176 container ships, dry bulk ships, and tankers for liquids. The ships can carry a wide range of cargo and navigate through canals or sail the wild seas around the Cape of Good Hope and Cape Horn. The ships are a mix in sizes, for long and short-haul deliveries, from less voluminous cargo carriers to Panamax and Capesize. Marine Digital lists Navios as number 10 in the top 10 of marine shipping companies with a “diversified fleet of bulk carriers and container ships.” According to Fortune Business Insights, The global marine vessel market size was valued at USD 152.38 billion in 2023. The market is projected to grow from USD 160.56 billion in 2024 to USD 247.96 billion by 2032, exhibiting a CAGR of 5.6% during the forecast period. Asia Pacific dominated the marine vessel market with a market share of 52.46% in 2023.   7 Types of Cargo Ships (Sinay. ai) Seeking Alpha ranks Navios 10 out of 24 by Seeking Alpha's Quant Rating in the marine transportation industry. They are in business since 2007. From 2016 into the pandemic years of 2020, the stock flatlined. It wandered between $20 per share, sinking to $6.30, then gaining momentum as freight rates began to rise in 2021. Upsides  The correction in the industry in June and July ’24 after stocks rose dramatically has not resulted in a major sell-off of Navios shares. In fact, in Q2 ’23 just 3 hedge funds owned the stock; by the end of Q1 ’24, 9 owned shares. In management’s report to shareholders last May, the company is modernizing the fleet. Navios sold 4 ships for $92.6M, and bought 6 cargo ships YTD spending $245.7M; they bought tankers for $129.1M, 4 Japanese vessels for $116.6M, and took delivery of 2 container ships and one other from earlier orders. The company’s backlog in Q1 ’24 grew by $211.2M. Management foresees good operating cash flow potential for the last nine months of 2024. They told shareholders there will be an estimated $53.3M of contracted revenue in excess of cash cost. At the end of Q1 ’24, EBITDA was +6% over Q1 ’23 and +30% over Q1 ’22. Cash balance rose 82% to $318M since in FY ’23 and YTD ’24. Navios ranks eighth in its industry with a market cap of $1.42B.    Quant Rating & Factor Grades (Seeking Alpha) Valuation The P/E is 3.27, i.e., among the lowest ratios of marine shipping industry stocks. Multiplying the 3.27 by $14.69 earnings, we believe $48 per share for the remainder of 2024 is a fair market price. We forecast a high potential target price of $61 to $65 per share over the next 6 to 9 months; that is almost a 30% increase while concomitantly we do not foresee any major setbacks that will cause the share price to dive. The Levered/Unlevered Beta is 0.42, well below the market’s target metric of 1 for volatility. We are basing this on earnings that we and others estimate will be in FY ’24 $14.69 or more per share, and $19 in ’25 (up from $12.45 in FY ’23). The momentum garnering an A+ Factor Grade from Seeking Alpha is likely to continue strong considering the geopolitical issues, freight rate increases in 2024 despite a 2% turndown in price per container in mid-July, and forecasts of better world economic growth numbers in 2024 from the likes of Fitch.   World Container Index (Ewry.co.uk) Further undergirding our position that it is a good time for investors to consider our Moderate Buy rating of Navios shares are the near-sterling valuation metrics warranting an A+ Factor Grade. The weakest grades are Price-to-Sales (B) and Enterprise Value-to-Sales (C). The puny dividend yield of 0.42% is not a factor in our calculations. Risks Risks to maritime shipping profits abound from higher costs per continuing container shortages, port congestion, higher insurance premiums, higher wages for crews longer at sea, cautious economic outlooks, and war on the high seas to softening freight rates in July that can slump further. Only a few analysts cover the stock and the average number of shares traded daily is light, less than 100K. Two issues are worth noting, company debt and its negative working capital as of the end of Q1 ’24. Debt totaled $665.23M in March; equity was $174M. The Debt-to-Equity ratio is +382%. On the bright side, the total debt and ratio have fallen over the last 4 years.   Debt, Equity, Cash & Equities (Simply Wall Street) At the end of March, assets totaled $443.3M. Liabilities topped $497M, leaving a negative working capital of over $50M. Management affirmatively forecasts in its statement to the USSEC on May 22, 2024, that the company will cover the problem through contracted revenue of $3.4B and cash proceeds from the sales of ships. One analyst using a discounted cash flow model concludes the fair value price of the stock is but $0.94 per share. Takeaway A June headline in The Economist screams, “Boom times are back for container shipping.” This is our fourth article about this essential industry. It has momentum and growth. We like Navios because of its fleet diversity and emphasis on keeping the fleet from aging. The financial metrics, including a low P/E ratio, make the stock attractive. We continue to believe that geopolitical chaos and growth in big economies are persistent stimuli, keeping the momentum of maritime shipping stocks on the upswing. Since the Houthi attacks began some 7 months after the Hamas terror attack on Israel last October 7, freight rates jumped around 150%. We expect them to climb higher once Israel responds to the Hezbollah rocket that killed 12 children last week and Ukraine’s missile attack on a Russian air base. Navios stock merely inched down to $47.22 per share from its 52-week high of $53.83.   Analysis (InfrontAnalytics)  The debt and negative working capital at the end of Q1 ‘24 may not be serious risks to our target price for the stock, but they are 2 factors to consider. Add in limited growth expectations, according to Seeking Alpha metrics, you can understand why we are tentatively assessing Navios as a Moderate Buy opportunity, at this time.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2455684473"}