One-glance verdict
Undervalued
$49.09 our estimate vs market $20.80
Wall Street consensus: $26.08 (-46.9% lower than our fair-value estimate)
58% below our estimate, below the bear case
Fundamentals snapshot
Navigator Holdings Ltd.
NVGS · NYQ · Energy · Oil & Gas Midstream
Current price
$20.80
52-week range
$17.12 - $25.48
Market cap
$1.27B
Balance sheet
Stretched
2.51x Stretched
Net debt $546.95M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.6% last year.
- Reward Returns 14.8% on equity, ahead of 33% of its peers.
- Risk Forward P/E (11.4x) is higher than trailing (7.1x) - earnings are expected to drop.
- Risk Net debt grew 12.7% over 3 years.
What this company does
Navigator Holdings Ltd.
Navigator Holdings Ltd. transports liquefied gases like ammonia and propane around the world using its fleet of ships, and this shipping business is where most of its money comes from. They also offer services related to ports and provide advice, which helps them earn a bit more. Understanding this is important because their earnings (how much profit they make) will largely depend on how much gas needs to be shipped and the prices they can charge for it.
How the company got here
Navigator Holdings Ltd. was incorporated in 1997 and is based in London, United Kingdom. It was formerly known as Isle of Man public limited company before changing its name in 2006. The company has grown to become a significant player in the global seaborne transportation of liquefied gases. Its history is marked by strategic expansion and adaptation to the evolving energy markets, establishing itself as a key link in the global gas supply chain.
What it actually does
Navigator Holdings Ltd. owns and operates a large fleet of liquefied gas carriers. These ships are essentially floating pipelines that transport various gases across the world's oceans. The company's services are crucial for energy companies, industrial users, and commodity traders who rely on the safe and efficient movement of these vital resources. Navigator's operations are a critical part of the global energy infrastructure, connecting producers with consumers.
Liquefied Gas Transportation
This is the core business of Navigator Holdings. The company operates a fleet of 56 to 57 semi- or fully-refrigerated liquefied gas carriers, many of which are capable of transporting ethylene and ethane. These specialized vessels are used for the international and regional seaborne transportation of petrochemical gases, liquefied petroleum gases (LPG), and ammonia. Essentially, Navigator provides the ships that move these gases from where they are produced to where they are needed, serving as a vital link in the supply chain for major energy and industrial clients.
Ethylene Export Marine Terminal
Navigator Holdings also has a stake in an ethylene export marine terminal located at Morgan's Point, Texas, on the Houston Ship Channel. This terminal is a joint venture, meaning Navigator owns a portion of it along with other partners. It plays a role in the export of ethylene, a key petrochemical, further integrating Navigator into the energy and chemical supply chain by providing critical infrastructure for loading and unloading these gases.
Ship Shore Infrastructure and Consultancy
Beyond just transporting gases, Navigator Holdings offers related services such as ship shore infrastructure and consultancy. This means they provide expertise and potentially facilities related to the handling and transfer of gases between ships and land-based operations. This segment leverages their deep knowledge of gas logistics and maritime operations to assist clients with various aspects of their gas supply chain needs.
What management is betting on now
Navigator Holdings is focused on its role in the global liquefied gas supply chain, aiming to provide efficient and reliable transportation solutions. The company's strategy involves maintaining and potentially expanding its sophisticated fleet of gas carriers, which act as 'floating pipelines.' Management emphasizes connecting the world through its services, contributing to both current energy needs and a vision for a sustainable future.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$210.52M
FY2025 Q4
$116.64M
Revenue
$586.96M
Net income
$100.12M
Diluted EPS
1.47
Operating cash flow
$201.66M
Free cash flow
$116.64M
Fetching…
Sources
Revenue
$566.68M
Net income
$85.57M
Diluted EPS
1.19
Operating cash flow
$210.52M
Free cash flow
$210.52M
Fetching…
Sources
Is it cheap or expensive?
Fair value $49.09 vs current price $20.80
Wall Street consensus is the average analyst price target: $26.08 (-46.9% lower than our fair-value estimate).
Our most-likely fair value is $49.09 a share — about 136.0% above today's price of $20.80, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $547.0M. Interest coverage 2.5x.
Net debt
$546.95M
Interest coverage
2.51x
Navigator Holdings Ltd.'s profit covers its interest bill about 2.5 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
NVGS
BASELINE
Navigator Holdings Ltd.
Total debt $768.04M Interest coverage 2.51x This is the baseline the peer rows are being compared against.
Total debt $604.03M Interest coverage 7.93x +216% vs NVGS Carries about 3.2x more debt cushion than NVGS.
Total debt $932.63M Interest coverage 5.50x +119% vs NVGS Carries about 2.2x more debt cushion than NVGS.
Total debt $2.68B Interest coverage 3.95x +57% vs NVGS Carries about 1.6x more debt cushion than NVGS.
Total debt $39.19K Interest coverage 24.57x +877% vs NVGS Carries about 9.8x more debt cushion than NVGS.
Total debt $37.50M Interest coverage 74.24x +2,853% vs NVGS Carries about 29.5x more debt cushion than NVGS.
What you should know
The case for and against NVGS
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.6% last year.
-
Returns 14.8% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Forward P/E (11.4x) is higher than trailing (7.1x) - earnings are expected to drop.
-
Net debt grew 12.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
7.15x
Forward P/E
11.41x
P/B
0.97x
P/S
2.05x
EV/EBITDA
7.15x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
53.4%
Operating margin
23.3%
Net margin
30.1%
ROE
14.8%
ROA
4.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.58x
Current ratio
1.38x
Quick ratio
1.03x
Total debt
$768.04M
Total cash
$221.08M
Growth
How the business has been compounding
Revenue TTM
$2.18B
Revenue 5Y CAGR
9.6%
EPS TTM
2.91
EPS 5Y CAGR
28.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$717.20M
Free CF TTM
$116.64M
FCF margin
5.4%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
9.6%
Last ex-div date
2026-11-17