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NEW YORK (TheStreet) -- Navios Maritime Partners (NMM) - Get Navios Maritime Partners LP Report has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NAVIOS MARITIME PARTNERS LP (NMM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NMM's revenue growth has slightly outpaced the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 18.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for NAVIOS MARITIME PARTNERS LP is currently very high, coming in at 93.07%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.58% significantly outperformed against the industry average.
- NMM's debt-to-equity ratio of 0.72 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 5.40 is very high and demonstrates very strong liquidity.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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.
- Net operating cash flow has decreased to $32.16 million or 21.10% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, NAVIOS MARITIME PARTNERS LP has marginally lower results.
- You can view the full analysis from the report here: NMM Ratings Report