Navios Maritime Holdings Inc. operates as a seaborne shipping and logistics company. The company focuses on the transportation and transshipment of dry bulk commodities, including iron ore, coal, and grains. It operates in two segments, Dry Bulk Vessel Operations and Logistics Business. The company is based in Monaco.
NM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Navios Maritime Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Navios Maritime Holdings Inc ranked in the 92th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3472.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Navios Maritime Holdings Inc ended up being:
The company's balance sheet shows it gets 1% of its capital from equity, and 99% of its capital from debt. Notably, its equity weight is greater than merely 1.3% of US equities in the Industrials sector yielding a positive free cash flow.
Navios Maritime Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Navios Maritime Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.43. This coverage rate is greater than that of just 23.14% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ESOA, VRTV, KE, CAR, and GOL can be thought of as valuation peers to NM, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Navios Maritime ([[NM]] +2.0%) reports Q2 revenue of $97.13M (-14.4% Y/Y)Revenue from dry bulk vessel operations decreased by 27.6% to $38.3M, from logistics business was $58.8M, down 3%.Adjusted EBITDA of $27.2M, as compared to $52.8M last yearNet loss of $35.3M or EPS loss of $7.06.Adjusted net loss of $25M or adjusted EPS...
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Navios South American Logistics Inc. (“Navios Logistics” or the “Company”) announced today that the Company and Navios Logistics Finance (US) Inc. (“Logistics Finance” and, together with the Company, the “Co-Issuers”), its wholly owned finance subsidiary, priced $500 million of 10.750% Senior Secured Notes due 2025 (the “Notes”) on June 23, 2020. The Notes were offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and in offshore transactions to non-United States persons in reliance on Regulation S under the Securities Act. The Notes and related guarantees have not been registered under the Securities Act or the securities laws of any othe...