Navios Maritime Acquisition Stock Appears To Be Possible Value Trap

GuruFocus.com
·4 min read

- By GF Value

The stock of Navios Maritime Acquisition (NYSE:NNA, 30-year Financials) appears to be possible value trap, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. At its current price of $3.23 per share and the market cap of $55.2 million, Navios Maritime Acquisition stock is believed to be possible value trap. GF Value for Navios Maritime Acquisition is shown in the chart below.


Navios Maritime Acquisition Stock Appears To Be Possible Value Trap
Navios Maritime Acquisition Stock Appears To Be Possible Value Trap

The reason we think that Navios Maritime Acquisition stock might be a value trap is because Navios Maritime Acquisition has an Altman Z-score of 0.39, which indicates that the financial condition of the company is in the distressed zone and implies a higher risk of bankruptcy. An Altman Z-score of above 2.99 would be better, indicating safe financial conditions. To learn more about how the Z-score measures the financial risk of the company, please go here.

Link: These companies may deliever higher future returns at reduced risk.

Companies with poor financial strength offer investors a high risk of permanent capital loss. To avoid permanent capital loss, an investor must do their research and review a company's financial strength before deciding to purchase shares. Both the cash-to-debt ratio and interest coverage of a company are a great way to to understand its financial strength. Navios Maritime Acquisition has a cash-to-debt ratio of 0.05, which which ranks worse than 83% of the companies in Oil & Gas industry. The overall financial strength of Navios Maritime Acquisition is 3 out of 10, which indicates that the financial strength of Navios Maritime Acquisition is poor. This is the debt and cash of Navios Maritime Acquisition over the past years:

Navios Maritime Acquisition Stock Appears To Be Possible Value Trap
Navios Maritime Acquisition Stock Appears To Be Possible Value Trap

Companies that have been consistently profitable over the long term offer less risk for investors who may want to purchase shares. Higher profit margins usually dictate a better investment compared to a company with lower profit margins. Navios Maritime Acquisition has been profitable 3 over the past 10 years. Over the past twelve months, the company had a revenue of $374.3 million and earnings of $2.81 a share. Its operating margin is 35.74%, which ranks better than 91% of the companies in Oil & Gas industry. Overall, the profitability of Navios Maritime Acquisition is ranked 5 out of 10, which indicates fair profitability. This is the revenue and net income of Navios Maritime Acquisition over the past years:

Navios Maritime Acquisition Stock Appears To Be Possible Value Trap
Navios Maritime Acquisition Stock Appears To Be Possible Value Trap

Growth is probably the most important factor in the valuation of a company. GuruFocus research has found that growth is closely correlated with the long term stock performance of a company. A faster growing company creates more value for shareholders, especially if the growth is profitable. The 3-year average annual revenue growth of Navios Maritime Acquisition is -11.1%, which ranks worse than 68% of the companies in Oil & Gas industry. The 3-year average EBITDA growth rate is -29.7%, which ranks worse than 81% of the companies in Oil & Gas industry.

Another method of determining the profitability of a company is to compare its return on invested capital to the weighted average cost of capital. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business. The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. When the ROIC is higher than the WACC, it implies the company is creating value for shareholders. For the past 12 months, Navios Maritime Acquisition's return on invested capital is 8.58, and its cost of capital is 8.01. The historical ROIC vs WACC comparison of Navios Maritime Acquisition is shown below:

Navios Maritime Acquisition Stock Appears To Be Possible Value Trap
Navios Maritime Acquisition Stock Appears To Be Possible Value Trap

In closing, The stock of Navios Maritime Acquisition (NYSE:NNA, 30-year Financials) gives every indication of being possible value trap. The company's financial condition is poor and its profitability is fair. Its growth ranks worse than 81% of the companies in Oil & Gas industry. To learn more about Navios Maritime Acquisition stock, you can check out its 30-year Financials here.

To find out the high quality companies that may deliever above average returns, please check out GuruFocus High Quality Low Capex Screener.

This article first appeared on GuruFocus.

Recommended Stories

  • I meal-prepped ahead of my second COVID-19 vaccine and the 2-day fever that followed. Here's what worked - and what you should do differently.

    I stocked up on soup, salad, and oats in anticipation of fever, chills, and nausea. Two dietitians told me what they approved of, and what they'd add.

  • Missing man’s boat found aground in VA river with engine running — and no one on board

    Officials said the owner, 34-year-old Russell Hines, is missing.

  • Inside the life of Bill Gates' daughter Jennifer, an elite equestrian who stands to inherit 'a minuscule portion' of her father's $130 billion fortune

    Bill Gates' eldest daughter, Jennifer, recently gave an interview discussing growing up enormously wealthy. Take a look inside her life.

  • Beyoncé and Jay-Z share rare photo of their entire family, and Blue Ivy is almost as tall as her mom now

    The "Already" singer and "Sorry Not Sorry" rapper shared a rare picture of them in matching outfits with their oldest daughter and twins Rumi and Sir.

  • Second walk-in Arlington J&J COVID vaccine clinic set for Tuesday

    Appointments are not necessary, as city officials expend a surplus of Johnson & Johnson vaccines and continue vaccinating surrounding communities.

  • What are the blood clots associated with the Johnson Johnson COVID-19 vaccine? 4 questions answered

    The pause on the Johnson & Johnson vaccine was lifted on April 23, 2021. SOPA Images/Light Rocket via Getty ImagesTwo vaccines – the Johnson & Johnson vaccine in the U.S. and the AstraZeneca vaccine in Europe – have been linked to an increased chance of a rare type of blood clot. Researchers are investigating what causes these clots and are starting to propose some answers. Dr. Mousumi Som, a professor of medicine at Oklahoma State University, explains what these rare clots are and how they are forming after people get vaccinated. 1. What are the blood clots? A small number of people in the U.S. have developed dangerous blood clots after receiving the Johnson & Johnson vaccine. The clots have mostly been occurring in people’s brains and, paradoxically, are associated with low platelet counts. Normally, platelets help a person stop bleeding when they get injured. If you get a cut or have an injury, the body responds by sending platelets which act as a temporary patch. The patch attracts other platelets and they stick together to stop blood loss. Since platelets normally help the clotting process, this combination of low platelets and extreme clotting makes these clots medically unusual. These specific types of clots – called cerebral venous sinus thrombosis – although rare, affect around two to five people per million per year and are potentially life-threatening without treatment. Vaccines aren’t normally a trigger for this kind of clot. 2. Who is having these clots? As of April 24, 2021, out of the 8 million people vaccinated with the Johnson & Johnson vaccine in the U.S., about 16 people have developed these blood clots. The clots occurred from six to 13 days after immunization, and the majority were in women between the ages of 18 and 48. On April 26, 2021, news reports indicated that at least one man had developed a clot. The man is in his 30s and was hospitalized from a clot in his leg about two weeks after receiving the Johnson & Johnson vaccine. Health officials in Europe have also reported that the AstraZeneca vaccine – a COVID-19 vaccine authorized and approved in Europe but not in the U.S. – has caused about 200 cases of low-platelet clotting. Importantly, both the Johnson & Johnson vaccine and the AstraZeneca vaccine use a type of harmless virus called an adenovirus to deliver instructions to the human body on how to build an immune response to COVID-19. This is called a viral vector vaccine. The fact that the both vaccines use a viral vector and both are associated with blood clots has led many health experts to think that the clotting issues of the two vaccines may share the same mechanism. 3. Why are women getting more clots than men? At this point, doctors still don’t know what makes women more susceptible than men, nor what puts a person at risk for these clots. These clots can occur, though rarely, in people who don’t get a vaccine. Scientists know that women are three times more likely to develop this type of clot without receiving the vaccine. Many researchers think this is because of birth control or other hormonal replacements that women take. 4. Why might the vaccines be causing blood clots? Researchers believe that this specific low-platelet clotting is similar to a reaction some individuals get when they receive a blood thinner called heparin, called heparin-induced thrombocytopenia. Doctors sometimes use heparin to thin a person’s blood in the case of a heart attack or a blood clot when blood flow needs to be reestablished. But some people experience the opposite reaction, and their blood ends up clotting more instead. This happens because the body triggers an unwanted immune response after receiving heparin. In these patients, heparin attaches to a product released from platelets called platelet factor 4. When this happens, the immune system considers the combined platelet factor 4 and heparin a problem, so it creates antibodies in response. These antibodies attach to the heparin and platelet factor 4 complex, and the body – which now thinks it needs to repair an injury – causes more clotting while using up even more platelets. This results in the low platelet count seen in these patients. When doctors have looked at the blood of patients who developed clots after receiving the Johnson & Johnson or AstraZeneca vaccine, it looked very similar to the blood of people who have the low-platelet clotting reaction to heparin. This has led scientists and doctors to believe that the same process might be leading to these clots caused by the two vaccines.This article is republished from The Conversation, a nonprofit news site dedicated to sharing ideas from academic experts. It was written by: Mousumi Som, Oklahoma State University. Read more:Restart of the Johnson & Johnson COVID-19 vaccine: A doctor explains why benefits far outweigh risksNo, vaccine side effects don’t tell you how well your immune system will protect you from COVID-19COVID-19 causes some patients’ immune systems to attack their own bodies, which may contribute to severe illness Mousumi Som works fr the Oklahoma State University Center for Health Sciences. She has received funding from Eli Lilly and NIAID for drug related research on COVID treatments. She is affiliated with the National Board of Osteopathic Medical Examiners and the Osteopathic Founders Foundation. .

  • Controversy still dogs Charlotte arts funding plan, as private companies pledge $7M

    Even as the campaign to raise more private funding continues, local artists are demanding a meeting with city officials to be part of the process.

  • Good Samaritan saves child thrown out of car into bay in horror crash

    The cause of the car wreck is still under investigation

  • Bill and Melinda Gates divorce after 27 years of marriage

    In a statement the pair said "we no longer believe we can grow together as a couple".

  • Customer beating man with gun at bar accidentally kills own relative, Texas cops say

    A Texas shooting suspect killed his family member while beating another man with a gun, officials say.

  • Texas gang member called ‘Terror’ convicted of killing teen witness gets life in prison

    He is a member of MS-13, one of the world’s most violent street gangs.

  • Italy reports 256 coronavirus deaths on Monday, 5,948 new cases

    Italy reported 256 coronavirus-related deaths on Monday against 144 the day before, the health ministry said, while the daily tally of new infections fell to 5,948 from 9,148. Italy has registered 121,433 deaths linked to COVID-19 since its outbreak emerged in February last year, the second-highest toll in Europe after Britain and the seventh-highest in the world. The total number of intensive care patients fell to 2,490 from a previous 2,524.

  • DeSantis signs order ending all local COVID-19 restrictions in Florida

    Florida Gov. Ron DeSantis (R) on Monday signed an executive order to end all local emergency orders relating to COVID-19, effectively halting enforcement of restrictions across the state, the Miami Herald reports. Why it matters: DeSantis argued that continuing to mandate restrictions would undermine confidence in the vaccines, which he stressed are effective and have been administered to much of the state's elderly population.Stay on top of the latest market trends and economic insights with Axios Markets. Subscribe for freeThe big picture: New coronavirus infections are falling across most of the country and 38% of the adult U.S. population is fully vaccinated, though health experts caution that variants could still threaten to reverse the country's progress.Florida, which became one of the world's epicenters for the virus in July, has fully vaccinated 37.3% of its population.About one in 609 residents in the state have died from the virus, compared to a national rate closer to one in 569 people, per the Orlando Sentinel. What they're saying: DeSantis accused governors of seizing power during the pandemic through executive orders meant to enforce social distancing and stay-at-home orders. "Now in the state of Florida, we worked very hard, particularly since this summer, to jettison those types of policies and we focused on lifting people up. We wanted people going back to work, we wanted our kids to be in school, we thought that that was very important," he said. The other side: Rick Kriseman, the mayor of St. Petersburg, tweeted, "To be clear, cities like St. Pete, Tampa, Orlando, Miami and Miami Beach, saved Florida and the governor's behind throughout this pandemic. Can you imagine if each city had been led by Ron DeSantis? How many lives would have been lost? What would our economy look like today?"Go deeper: Florida Gov. Ron DeSantis bans coronavirus "vaccine passports"More from Axios: Sign up to get the latest market trends with Axios Markets. Subscribe for free

  • Columbia woman nearly threw out winning lottery ticket with a six-figure jackpot

    The odds of winning the jackpot were 1-in-668,571.43, according to the South Carolina Education Lottery.

  • Scientists scramble to see why, in rare cases, even the vaccinated can get COVID-19

    Health experts expected some vaccinated people to contract COVID-19. But more research is needed on exactly why it is happening now, in small numbers.

  • Quadruple shooting at Carroll Park leaves 1 dead, 3 injured

    One man was killed and three others were injured Sunday night in a shooting at Carroll Park in southwest Baltimore, police said. City police said officers were called around 8:11 p.m. for multiple ShotSpotter alerts in the 1500 block of Washington Boulevard at Carroll Park.

  • Dominion is accusing Sidney Powell of promoting 'defamatory falsehoods' to attract money and fame

    The election software company is suing the former Trump campaign attorney for defamation and seeking $1.3 billion in damages.

  • Bill and Melinda Gates: A life in pictures

    Images of the couple, who set up the Bill and Melinda Gates Foundation in 2000, after they announce their divorce.

  • 11 reality stars who dated people from behind the scenes of their shows

    Sometimes, reality stars end up finding love with someone behind the camera, like "Real Housewives" star Kandi Burruss and her husband, Todd Tucker.

  • NY woman charged after attacking flight attendant mid-air — twice

    Off-duty NYPD officer eventually restrains woman accused of assaulting flight attendant