Navios Maritime Partners L.P. (NYSE: NMM)

Sector: Industrials Industry: Marine Shipping CIK: 0001415921
Market Cap 1.24 Bn
P/B 0.38
P/E 4.72
P/S 0.95
ROIC (Qtr) 6.53
Div Yield % 0.24
Rev 1y % (Qtr) 1.79
Total Debt (Qtr) 2.45 Bn
Debt/Equity (Qtr) 0.76
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About

Investment thesis

Bull case

  • Strong operating cash flow of 496.18M provides 5.44x coverage of SG&A expenses 91.19M, showing efficient operational cost management.
  • Tangible assets of 5.92B provide exceptional 51.38x coverage of deferred revenue 115.19M, showing strong service capability backing.
  • Operating cash flow of 496.18M provides strong 4.31x coverage of deferred revenue 115.19M, indicating service delivery capability.
  • Operating cash flow of 496.18M provides solid 1.07x coverage of current liabilities 463.02M, showing strong operational health.
  • Robust tangible asset base of 5.92B provides 444.73x coverage of working capital 13.31M, indicating strong operational backing.

Bear case

  • Operating cash flow of 496.18M barely covers its investment activities of (506.82M), with a coverage ratio of -0.98, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 496.18M provides thin coverage of dividend payments of (6.01M) with a -82.61 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (28.14M) provides weak coverage of capital expenditures of 524.32M, with a -0.05 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 396.88M show weak coverage of depreciation charges of 327.38M, with a 1.21 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (28.14M) represents just -0.20x of debt issuance 139.54M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Geographical Breakdown of Revenue (2021)

Scenario Breakdown of Revenue (2021)

Peer comparison

Companies in the Marine Shipping
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KEX Kirby Corp 7.05 Bn 19.89 2.10 1.13 Bn
2 MATX Matson, Inc. 6.79 Bn 74.01 4.43 0.72 Bn
3 ZIM ZIM Integrated Shipping Services Ltd. 3.36 Bn 3.35 0.44 5.66 Bn
4 HAFN Hafnia Ltd 3.35 Bn 10.82 1.51 0.89 Bn
5 BWLP BW LPG Ltd 2.38 Bn 10.97 0.67 1.09 Bn
6 SBLK Star Bulk Carriers Corp. 2.37 Bn 245.30 3.42 1.23 Bn
7 CMRE Costamare Inc. 2.05 Bn 6.81 1.69 1.58 Bn
8 DAC Danaos Corp 1.99 Bn 4.27 1.93 0.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.56 0.60
EV to Cash from Ops. EV/CFO 6.67 6.07
EV to Debt EV to Debt 1.35 60.45
EV to EBIT EV/EBIT 8.34 4.74
EV to EBITDA EV/EBITDA 4.75 5.76
EV to Free Cash Flow [EV/FCF] EV/FCF -117.67 5.00
EV to Market Cap EV to Market Cap 2.67 29.59
EV to Revenue EV/Rev 2.52 2.00
Price to Book Value [P/B] P/B 0.38 1.07
Price to Earnings [P/E] P/E 4.72 13.80
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 43.74 2.47
Dividend Payout Ratio % Div Payout % (Qtr) 1.50 68.67
Dividend per Basic Share Div per Share (Qtr) 0.15 1.18
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -15.43 105.16
Interest Coverage Int. cover (Qtr) 2.96 -7.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 30.70 -33.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.84 25.96
Dividend Growth (1y) % Div 1y % (Qtr) -25.00 9.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -25.12 -27.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1.16 -36.36
EBIT Growth (1y) % EBIT 1y % (Qtr) -25.12 -26.39
EBT Growth (1y) % EBT 1y % (Qtr) -35.12 -36.07
EPS Growth (1y) % EPS 1y % (Qtr) -19.63 -30.68
FCF Growth (1y) % FCF 1y % (Qtr) 84.04 14.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -1.61 -7.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.22 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.01 0.08
Cash Ratio Cash Ratio (Qtr) 0.78 1.33
Current Ratio Curr Ratio (Qtr) 1.03 2.15
Debt to Equity Ratio Debt/Equity (Qtr) 0.76 0.73
Interest Cover Ratio Int Coverage (Qtr) 2.96 -7.10
Times Interest Earned Times Interest Earned (Qtr) 2.96 -7.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 55.20 27.36
EBIT Margin % EBIT Margin % (Qtr) 30.27 17.95
EBT Margin % EBT Margin % (Qtr) 20.04 10.77
Gross Margin % Gross Margin % (Qtr) 60.10 37.00
Net Profit Margin % Net Margin % (Qtr) 20.00 9.28