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Is Navios Maritime Partners LP (NMM) Stock Undervalued Right Now?

Zacks Equity Research
EGOV vs. APTI: Which Stock Is the Better Value Option?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Navios Maritime Partners LP (NMM). NMM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.21, which compares to its industry's average of 20.39. Over the past year, NMM's Forward P/E has been as high as 25.74 and as low as 8.06, with a median of 11.57.

Another valuation metric that we should highlight is NMM's P/B ratio of 0.36. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.05. Over the past 12 months, NMM's P/B has been as high as 0.49 and as low as 0.32, with a median of 0.39.

Finally, our model also underscores that NMM has a P/CF ratio of 6.33. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. NMM's current P/CF looks attractive when compared to its industry's average P/CF of 19.63. NMM's P/CF has been as high as 8.06 and as low as 3.10, with a median of 4.23, all within the past year.

These are just a handful of the figures considered in Navios Maritime Partners LP's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NMM is an impressive value stock right now.


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