Navios Maritime Holdings Inc. (NYSE:NM) Has Found A Path To Profitability
We feel now is a pretty good time to analyse Navios Maritime Holdings Inc.'s (NYSE:NM) business as it appears the company may be on the cusp of a considerable accomplishment. Navios Maritime Holdings Inc. operates as a seaborne shipping and logistics company in North America, Australia, Europe, Asia, South America, and internationally. With the latest financial year loss of US$198m and a trailing-twelve-month loss of US$84m, the US$89m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Navios Maritime Holdings' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Navios Maritime Holdings
Navios Maritime Holdings is bordering on breakeven, according to some American Shipping analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$71m in 2021. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 101% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Navios Maritime Holdings' upcoming projects, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Navios Maritime Holdings is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are too many aspects of Navios Maritime Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Navios Maritime Holdings' company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:
Historical Track Record: What has Navios Maritime Holdings' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Navios Maritime Holdings' board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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