Navigator Holdings Ltd. Fundamental Analysis (NYSE: NVGS)
Navigator Holdings Ltd. (NYSE: NVGS) shows strong financial fundamentals with a PE ratio of 9.92, profit margin of 22.80%, and ROE of 11.48%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 3.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NVGS's fundamental strength across five key dimensions:
Efficiency Score
WeakNVGS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNVGS trades at attractive valuation levels.
Growth Score
ModerateNVGS shows steady but slowing expansion.
Financial Health Score
ExcellentNVGS maintains a strong and stable balance sheet.
Profitability Score
ModerateNVGS maintains healthy but balanced margins.
Key Financial Metrics
Is NVGS Expensive or Cheap?
P/E Ratio
NVGS trades at 9.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NVGS's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Navigator Holdings Ltd. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.07 times EBITDA. This is generally considered low.
How Well Does NVGS Make Money?
Net Profit Margin
For every $100 in sales, Navigator Holdings Ltd. keeps $22.80 as profit after all expenses.
Operating Margin
Core operations generate 28.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.48 in profit for every $100 of shareholder equity.
ROA
Navigator Holdings Ltd. generates $6.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Navigator Holdings Ltd. generates strong operating cash flow of $202.09M, reflecting robust business health.
Free Cash Flow
Navigator Holdings Ltd. generates strong free cash flow of $133.47M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.16 in free cash annually.
FCF Yield
NVGS converts 9.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How NVGS Stacks Against Its Sector Peers
| Metric | NVGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.92 | 30.44 | Better (Cheaper) |
| ROE | 11.48% | 1101.00% | Weak |
| Net Margin | 22.80% | -25210.00% (disorted) | Strong |
| Debt/Equity | 0.75 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 1.71 | 21.67 | Neutral |
| ROA | 6.04% | -1323324.00% (disorted) | Weak |
NVGS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Navigator Holdings Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.52%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
18858.34%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
305.92%
Industry Style: Cyclical, Value, Infrastructure
High Growth