Navios Stock Story

It appears Navios Maritime may not recover as fast as we have hopped for as its price went down 1% today. The company current daily volatility is 10.55 percent, with a beta of 0.24 and an alpha of 0.63 over DOW. As many millenniums are excited about the current volatility, it is fair to go over Navios Maritime Acquisition based on its historical price patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Chances of Navios Maritime to slip after the volatility builds up
Navios Maritime Acquisition has roughly 45.67 M in cash with 87.01 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.76.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Navios Maritime has an asset utilization ratio of 18.94 percent. This suggests that the company is making $0.19 for each dollar of assets. An increasing asset utilization means that Navios Maritime Acquisition is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Navios Maritime's Liquidity

Navios Maritime financial leverage refers to using borrowed capital as a funding source to finance Navios Maritime Acquisition ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Navios Maritime financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Navios Maritime's total debt and its cash.

How Navios utilizes its cash?

To perform a cash flow analysis of Navios Maritime, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Navios Maritime is receiving and how much cash it distributes out in a given period. The Navios Maritime cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Navios Maritime Correlation with Peers

Investors in Navios can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Navios Maritime Acquisition. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Navios Maritime and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Navios is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Navios for more details

Acquisition or disposition of Navios Maritime securities by Malibu Partner Llc

Legal trades by Navios Maritime insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Navios Maritime Acquisition Cor insider trading alert for acquisition or disposition of option (right to buy) by Malibu Partner Llc, the corporate stakeholder, on 15th of April 2020. This event was filed by Navios Maritime Acquisiti with SEC on 2010-05-20. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Navios Maritime appears to be very risky, given 3 months investment horizon. Navios Maritime Acqu has Sharpe Ratio of 0.0776, which conveys that the firm had 0.0776% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. By analyzing Navios Maritime Acqu technical indicators you can presently evaluate if the expected return of 0.82% is justified by implied risk. Please exercise Navios Maritime's Risk Adjusted Performance of 0.0594, mean deviation of 4.3, and Downside Deviation of 3.84 to check out if our risk estimates are consistent with your expectations.
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Navios Maritime is projected to stay under $4.05 in November

Jensen alpha is down to 0.63. It may suggest a possible volatility slip. Navios Maritime Acquisition is displaying above-average volatility over the selected time horizon. Investors should scrutinize Navios Maritime Acquisition independently to ensure intended market timing strategies are aligned with expectations about Navios Maritime volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Navios Maritime's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Navios Maritime's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Navios Maritime Investment

Whereas some companies in the oil & gas midstream industry are either recovering or due for a correction, Navios Maritime may not be performing as strong as the other in terms of long-term growth potentials. On the whole, as of the 8th of October 2021, our research shows that Navios Maritime is a rather very risky investment opportunity with a close to average chance of financial distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our ongoing 90 days Buy-Hold-Sell recommendation on the company is Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Navios Maritime Acquisition. Please refer to our Terms of Use for any information regarding our disclosure principles.

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