Complete data analysis of good business: Navios Maritime Partners L.P. (NYSE: NMM)

 04 March 2020, Navios Maritime Partners L.P. the stock changed 1.36% to recent value of $8.96. There are 11.4M shares outstanding and 8.57M shares are floated in market NMM over recent time; they noted that 135301 shares changed at hands contradiction to its average trading volume of 100.61K.

The stock disclosed a move of -36.32% away from 50 day moving average and -43.82% away from 200 day moving average. Moving closer, we can see that shares have been trading -15.75% away off 20-day moving average.

Navios Maritime Partners L.P. (NMM) recently stated its financial results for the fourth quarter and year ended December 31, 2019.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners stated, “I am happy with the results for the fourth quarter and full year of 2019. For the fourth quarter, Navios Partners stated $33.7M in EBITDA, $12.2M in Adjusted Net Income and $1.11 in Adjusted Earnings per Ordinary Unit.

For the full year of 2019, Navios Partners stated $120.0M in Adjusted EBITDA, $26.9M in Adjusted Net Income and $2.43 in Adjusted Earnings per Ordinary Unit.”

Cash Distribution

The Board of Directors of Navios Partners reported a cash distribution for the fourth quarter of 2019 of $0.30 per unit. The cash distribution is payable on February 13, 2020 to all unit-holders of record as of February 11, 2020.

Acquisition of vessels

On December 14, 2019, Navios Partners took delivery of five container-ships upon the liquidation of Navios Europe Inc. (“Navios Europe I”).

Navios Partners received about $ 49.6M in satisfaction of the amount payable from Navios Europe I to Navios Partners. Separately, Navios Partners assumed a $23.5M loan from a commercial bank, with interest at LIBOR plus 400 basis points (“bps”) and a maturity in September 2020.

On November 25, 2019, Navios Partners entered into a share purchase contract for the acquisition of four drybulk vessels from an entity associated with its Chairman and CEO for $37.0M (plus working capital adjustments) in a transaction accepted by the Conflicts Committee of the Board of Directors of Navios Partners. The vessels were delivered to Navios Partners’ owned fleet on December 17, 2019.

The four vessels were financed with a $37.0M loan from a financial institution with an amortization profile of ten years, yearly interest of LIBOR plus 475 bps, and maturity in 2022. The loan facility has no capital repayment until September 2020 and may be prepaid at any time without penalty.

Contracts for two Bareboat Charter-in Vessels

On October 18, 2019, Navios Partners agreed to bareboat charter-in two newbuilding Kamsarmax vessels.  Each vessel has about 81,000 dwt and is being bareboat chartered-in for ten years.

Navios Partners has the option to acquire the vessels after the end of the fourth year for the remaining period of the bareboat charter.  Assuming exercise of the option at the end of the ten-year period, the implied fixed interest rate is 4.5%.

Analyst Review:

Analyst mean recommendation for this stock stands at 2.3. A stock rating will usually tell the investor how well a stock’s market value relates to what analysts believe is a fair value for the stock, based on an objective evaluation of the company. Analyst recommendations as reported on FINVIZ are rated on a 1 to 5 scale. 1 is equivalent to a Strong Buy rating, 3 a hold rating, and 5 a Strong Sell rating. The consensus recommendation is the average rating on a stock by the analyst community.

Is NMM Stock being Risky?

You invest to earn a return on your money, but returns are not the only consideration. Risk and return are connected. Generally, the higher the risk of an investment, the higher the potential return.  Here beta – measures how the stock is doing compared to a given benchmark, such as the S&P TSX Composite Index.  Currently NMM has beta value of 2.17. A beta of 1.0 tells you that a stock has been going up and down with the overall stock market.

A stock with a beta between 0.0 and 1.0 has smaller ups and downs. A beta greater than 1.0 has wider price swings. Stocks with a negative beta are moving opposite to the index. When you invest in a stock, you could lose all of your money – in some cases, more than you invested. Before you buy a stock, understand the risks and decide if they are risks you are comfortable taking.

NMM’s shares are at -49.94% for the quarter and driving a -40.27% return over the course of the past year and is now at -51.88% since this point in 2019. The average volatility for the week and month was at -7.34% and -24.52% respectively.