Navios Maritime Partners (NMM) AI Stock Analysis

• Market Cap: $922.96M
• Dividend Yield: 0.68%
• Average Volume (3M): 124.92K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 1.08
• Revenue Growth: 2.08%
• EPS Growth: -14.91%
• Country: US
• Employees: 186
• Sector: Industrials
• Sector Strength: 61
• Industry: Marine Shipping
• EPS (TTM): 11.98
• Shares Outstanding: 29,487,444
• 10 Day Avg. Volume: 216,256
• 30 Day Avg. Volume: 124,925
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.93
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $80.00
• Price Target Upside: 158.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Navios Maritime Partners shows robust financial health with significant revenue growth and strong profitability. The company benefits from a solid balance sheet and cash flow, though there's room to improve net profit margins and invest in assets. The stock's valuation is attractive with a low P/E ratio, indicating potential upside. The earnings call underscores effective fleet management, though geopolitical risks and decreased EBITDA present challenges. Technical analysis is neutral, suggesting cautious optimism.

Positive Factors

Earnings

Navios Maritime Partners reported strong quarterly results, with earnings per share and EBITDA exceeding market expectations.

Fleet Expansion

The company has expanded its fleet by taking delivery of four new ships, contributing to a robust charter backlog.

Free Cash Flow

Navios generates significant free cash flow, supported by its $3.65 billion revenue backlog, that justifies a much higher share price.

Negative Factors

Market Volatility

Despite strong performance, the volatile nature of the shipping markets poses a risk to more predictable earnings.

Valuation

Navios is still deeply undervalued from an asset value perspective but more importantly on free cash flow.

Navios Maritime Partners Business Overview & Revenue Model

Company Description

Navios Maritime Partners L.P. (NMM) is a leading international owner and operator of dry cargo and tanker vessels. The company is engaged in the seaborne transportation services of a wide range of drybulk commodities including iron ore, coal, grain, and fertilizers, as well as petroleum products. Navios Maritime Partners operates a diversified fleet of vessels, providing maritime logistics services to a global customer base, which includes shipping companies, charterers, and other clients in the transport supply chain.

How the Company Makes Money

Navios Maritime Partners makes money primarily through the leasing of its fleet of vessels to shipping companies and charterers on both short-term and long-term charter agreements. These agreements provide a steady stream of revenue from charter hire payments. The company operates in the spot market as well, where it earns voyage revenues by transporting cargo directly for customers. Additionally, NMM may benefit from economies of scale through strategic fleet management and operational efficiencies. Significant partnerships with shipping companies and commodity producers can also enhance its market position and revenue potential. Furthermore, the company may engage in the sale and purchase of vessels, which can contribute to its earnings.

Navios Maritime Partners Financial Statement Overview

Summary

Navios Maritime Partners shows a solid financial position with strong revenue growth from $226M in 2020 to $1.33B in 2024 and a robust gross profit margin of 83.2%. The balance sheet is strong with a debt-to-equity ratio of 0.69, and cash flow generation remains solid. However, there are concerns regarding net profit margin decline and the need for asset investment.

Income Statement

Navios Maritime Partners has demonstrated significant revenue growth over the past few years, with an impressive increase from $226M in 2020 to over $1.33B in 2024. The gross profit margin improved substantially, reaching approximately 83.2% in 2024, indicating efficient cost management. The EBIT margin for 2024 stands at 50.7%, showcasing strong operating performance. However, net profit margin slightly decreased to 27.5% from 33.2% in the previous year, suggesting areas for improvement in net profitability.

Balance Sheet

The company's balance sheet shows a healthy equity position with stockholders' equity increasing to $3.11B in 2024. The debt-to-equity ratio is 0.69, indicating a balanced capital structure. Return on equity (ROE) was 11.8% in 2024, suggesting good returns for shareholders. However, the equity ratio is at 54.8%, indicating moderate leverage which could be a potential risk if not managed carefully.

Cash Flow

Operating cash flow remains robust at $483M in 2024, with a positive free cash flow of the same amount, reflecting strong cash generation capabilities. The free cash flow to net income ratio is 1.32, indicating efficient cash conversion. However, there was a decrease in operating cash flow from the previous year, and capital expenditure remains at zero, which may suggest underinvestment in asset growth or maintenance.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.33B	1.31B	1.21B	713.17M	226.77M
	Gross Profit
1.11B	859.39M	517.30M	343.51M	55.62M
	EBIT
676.14M	665.00M	512.99M	482.83M	-22.91M
	EBITDA
655.31M	794.03M	896.99M	601.75M	21.83M
	Net Income Common Stockholders
367.31M	433.64M	579.25M	293.50M	-37.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
312.08M	287.38M	157.81M	159.47M	30.73M
	Total Assets
5.67B	5.15B	4.90B	3.62B	1.21B
	Total Debt
2.13B	2.13B	1.17B	1.06B	486.86M
	Net Debt
1.83B	928.48M	1.02B	898.12M	456.13M
	Total Liabilities
2.57B	2.38B	2.55B	1.85B	552.44M
	Stockholders Equity
3.11B	2.77B	2.34B	-53.78M	654.83M
Cash Flow		Free Cash Flow
483.48M	95.30M	-104.24M	-1.71M	10.98M
	Operating Cash Flow
483.48M	560.32M	506.34M	277.17M	94.09M
	Investing Cash Flow
-782.13M	-253.01M	-316.24M	-106.25M	-83.85M
	Financing Cash Flow
349.26M	-233.22M	-184.45M	-32.20M	-9.91M

Navios Maritime Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMM, the sentiment is Negative. The current price of 31 is below the 20-day moving average (MA) of 37.82, below the 50-day MA of 40.49, and below the 200-day MA of 48.19, indicating a bearish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 29.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NMM.

Navios Maritime Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAC	79 Outperform	$1.34B	2.76	15.68%	4.96%	6.00%	-9.89%
GSL	78 Outperform	$696.85M	2.02	26.71%	8.85%	5.37%	16.97%
NMM	75 Outperform	$922.96M	2.61	12.46%	0.68%	2.08%	-14.91%
SBLK	72 Outperform	$1.58B	4.83	14.71%	15.82%	33.31%	62.94%
SFL	67 Neutral	$1.12B	7.63	12.05%	14.08%	20.22%	52.03%
CMRE	64 Neutral	$1.09B	3.74	13.07%	5.04%	37.10%	-17.36%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.62%	-14.40%