Trade-Ideas: Navios Maritime Partners L.P (NMM) Is Today's "Dead Cat Bounce" Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Navios Maritime Partners L.P as such a stock due to the following factors:
- NMM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.3 million.
- NMM has traded 109,394 shares today.
- NMM is up 8.1% today.
- NMM was down 10.4% yesterday.
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More details on NMM:
Navios Maritime Partners L.P. owns and operates dry cargo vessels in Europe, Asia, North America, and Australia. The stock currently has a dividend yield of 16.9%. NMM has a PE ratio of 11.7. Currently there is 1 analyst that rates Navios Maritime Partners L.P a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Navios Maritime Partners L.P has been 865,700 shares per day over the past 30 days. Navios Maritime Partners L.P has a market cap of $868.2 million and is part of the services sector and transportation industry. The stock has a beta of 1.14 and a short float of 8.1% with 3.22 days to cover. Shares are up 7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Navios Maritime Partners L.P as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Marine industry. The net income increased by 33.0% when compared to the same quarter one year prior, rising from $10.13 million to $13.47 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.2%. Since the same quarter one year prior, revenues rose by 13.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- NMM's debt-to-equity ratio of 0.78 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.52 is very high and demonstrates very strong liquidity.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Marine industry and the overall market, NAVIOS MARITIME PARTNERS LP's return on equity is below that of both the industry average and the S&P 500.
- NMM's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 42.62%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full Navios Maritime Partners L.P Ratings Report.
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