Navigator Holdings Ltd. (NYSE: NVGS)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0001581804
Market Cap 1.23 Bn
P/B 1.00
P/E 11.89
P/S 2.12
ROIC (Qtr) 6.03
Div Yield % 1.50
Rev 1y % (Qtr) 7.95
Total Debt (Qtr) 936.38 Mn
Debt/Equity (Qtr) 0.77

About

Navigator Holdings Ltd., a leading company in the liquefied gas transportation industry, operates under the stock symbol 'NVGS'. The company specializes in the transportation of liquefied petroleum gas (LPG), petrochemicals, and ammonia, serving major oil and gas companies, chemical companies, and energy trading companies. Navigator Holdings Ltd. is a significant player in the transportation of liquefied gases, operating a fleet of 56 vessels, including the world's largest fleet of handysize liquefied gas carriers. The company's operations span...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 198.73M provides strong 114.61x coverage of stock compensation 1.73M, indicating sustainable incentive practices.
  • Operating cash flow of 198.73M provides exceptional 31.08x coverage of minority interest expenses 6.39M, showing strong core operations.
  • Strong operating cash flow of 198.73M provides 5.47x coverage of SG&A expenses 36.36M, showing efficient operational cost management.
  • Operating cash flow of 198.73M provides strong 6.66x coverage of deferred revenue 29.86M, indicating service delivery capability.
  • Tangible assets of 2.30B provide exceptional 77x coverage of deferred revenue 29.86M, showing strong service capability backing.

Bear case

  • Operating cash flow of 198.73M barely covers its investment activities of (153.50M), with a coverage ratio of -1.29, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 198.73M provides thin coverage of dividend payments of (13.66M) with a -14.54 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 47.42M relative to inventory of 10.32M (4.60 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 164.75M show weak coverage of depreciation charges of 134.59M, with a 1.22 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 134.59M relative to operating cash flow of 198.73M, which is 0.68x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Oil & Gas Midstream
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ENB Enbridge Inc 100.05 Bn 24.60 2.15 75.15 Bn
2 WMB Williams Companies, Inc. 73.60 Bn 31.09 6.40 27.99 Bn
3 EPD Enterprise Products Partners L.P. 69.94 Bn 12.09 1.32 33.58 Bn
4 KMI Kinder Morgan, Inc. 60.62 Bn 22.23 3.69 32.58 Bn
5 ET Energy Transfer LP 58.05 Bn 13.46 0.73 63.97 Bn
6 TRP Tc Energy Corp 55.97 Bn 22.78 5.27 44.47 Bn
7 MPLX Mplx Lp 54.03 Bn 11.23 4.22 25.92 Bn
8 OKE Oneok Inc /New/ 44.55 Bn 13.34 1.41 33.73 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.86 3.39
EV to Cash from Ops. EV/CFO 9.91 7.77
EV to Debt EV to Debt 2.10 -68.56
EV to EBIT EV/EBIT 11.96 12.77
EV to EBITDA EV/EBITDA 6.97 7.47
EV to Free Cash Flow [EV/FCF] EV/FCF 23.77 13.20
EV to Market Cap EV to Market Cap 1.61 2.49
EV to Revenue EV/Rev 3.41 4.48
Price to Book Value [P/B] P/B 1.00 94.01
Price to Earnings [P/E] P/E 11.89 12.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 7.55 -3.60
Dividend Payout Ratio % Div Payout % (Qtr) 13.20 72.05
Dividend per Basic Share Div per Share (Qtr) 0.20 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 15.87 32.66
Interest Coverage Int. cover (Qtr) 2.99 5.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -461.65 -17.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 69.63 16,113.89
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -1.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 10.30 -5.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.06 -4.54
EBIT Growth (1y) % EBIT 1y % (Qtr) 12.93 -11.94
EBT Growth (1y) % EBT 1y % (Qtr) 29.31 -230.00
EPS Growth (1y) % EPS 1y % (Qtr) 33.63 -44.55
FCF Growth (1y) % FCF 1y % (Qtr) -59.23 -0.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -1.25 -1.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.25 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.04 0.21
Cash Ratio Cash Ratio (Qtr) 0.84 0.81
Current Ratio Curr Ratio (Qtr) 1.18 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 0.77 1.11
Interest Cover Ratio Int Coverage (Qtr) 2.99 5.11
Times Interest Earned Times Interest Earned (Qtr) 2.99 5.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 51.80 35.86
EBIT Margin % EBIT Margin % (Qtr) 28.49 27.76
EBT Margin % EBT Margin % (Qtr) 18.97 17.28
Gross Margin % Gross Margin % (Qtr) 54.20 48.56
Net Profit Margin % Net Margin % (Qtr) 17.90 15.36