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Navios Maritime Holdings Inc (NYSE:NM): Poised For Long-Term Success?

Amar Chadha

Navios Maritime Holdings Inc’s (NYSE:NM) released its most recent earnings update in December 2017, which suggested company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Investors may find it useful to understand how market analysts perceive Navios Maritime Holdings’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Navios Maritime Holdings

Analysts’ outlook for the coming year seems buoyant, with earnings becoming less negative, arriving at -US$62.00M in 2019. Moreover, earnings are predicted to continue its upward trajectory, arriving at -US$12.00M in 2020, before plateauing to similar levels in 2021.

NYSE:NM Future Profit Mar 29th 18

Even though it is helpful to understand the growth rate each year relative to today’s level, it may be more beneficial estimating the rate at which the business is moving every year, on average. The pro of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Navios Maritime Holdings’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 84.97%. This means, we can presume Navios Maritime Holdings will grow its earnings by 84.97% every year for the next couple of years.

Next Steps:

For Navios Maritime Holdings, I’ve compiled three relevant aspects you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is NM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NM is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of NM? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.