One-glance verdict
Undervalued
$22.54 our estimate vs market $7.05
Wall Street consensus: $10.00 (-55.6% lower than our fair-value estimate)
69% below our estimate, below the bear case
Fundamentals snapshot
Pyxis Tankers Inc.
PXS · NCM · Energy · Oil & Gas Midstream
Current price
$7.05
52-week range
$2.56 - $8.30
Market cap
$72.19M
Balance sheet
Stretched
1.08x Concerning
Net debt $25.03M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Returns 9.2% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 37.2% above its 5-year average P/E.
What this company does
Pyxis Tankers Inc.
Pyxis Tankers is a shipping company that makes money by charging other businesses to transport goods like gasoline, jet fuel, and chemicals in its fleet of specialized ships. The company's financial success is therefore closely tied to global demand for energy products and other goods, as more demand allows it to charge higher shipping rates.
How the company got here
Pyxis Tankers Inc. was founded in 2015 and is based in Greece. The company started by acquiring a fleet of six modern product tankers and listed on the NASDAQ stock exchange. Over the years, Pyxis has actively managed its fleet by selling older vessels and acquiring more modern, fuel-efficient ones. A key turning point was its strategic diversification into the dry-bulk sector to complement its main tanker business and create more resilience. This has led to its current mixed fleet of tanker and dry-bulk vessels.
What it actually does
Think of Pyxis Tankers as a global shipping service for energy and raw materials. The company owns a fleet of large ships and charters them out to other companies that need to transport goods across the ocean. These goods are either refined petroleum products, like the gasoline you put in your car or the jet fuel for airplanes, or dry goods, like coal, grain, and ores. Essentially, Pyxis provides the transportation, and its customers, which include oil companies and commodity traders, pay to use its ships for a specific period or voyage.
Tanker Vessels
This is the company's original and core business. This segment involves the transportation of refined petroleum products such as gasoline, diesel, jet fuel, and kerosene, as well as other liquids like vegetable oils. Customers, like major oil companies and trading firms, pay Pyxis to move these liquids from refineries to where they are needed around the world. This part of the business is sensitive to global demand for oil and gas and makes up a significant portion of the company's revenue.
Dry-Bulk Vessels
This is a newer and growing part of Pyxis's business, created to diversify its income. This segment transports dry commodities like coal, iron ore, and grains. Companies that trade or use these raw materials pay Pyxis to ship them, often to industrial centers or where they will be processed. By operating in both the tanker and dry-bulk markets, Pyxis aims to reduce its risk from the ups and downs of any single market.
What management is betting on now
The company's leadership is focused on selectively expanding its fleet by acquiring modern, eco-efficient vessels in both the tanker and dry-bulk sectors. They are also employing a mixed chartering strategy, using both fixed-term contracts (time charters) for stable income and single-voyage agreements (spot market) to capture high rates when the market is strong. Management believes that having a diversified and modern fleet will provide flexibility and better earnings through different market cycles. They also aim to maintain a strong financial position with moderate debt to be able to seize growth opportunities.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$38.99M
Net income
$1.99M
Diluted EPS
0.19
Operating cash flow
$13.61M
Free cash flow
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Sources
Revenue
$51.54M
Net income
$12.87M
Diluted EPS
0.91
Operating cash flow
$18.85M
Free cash flow
$-26.12M
Fetching…
Sources
Is it cheap or expensive?
Fair value $22.54 vs current price $7.05
Wall Street consensus is the average analyst price target: $10.00 (-55.6% lower than our fair-value estimate).
Our most-likely fair value is $22.54 a share — about 219.8% above today's price of $7.05, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $25.0M. Interest coverage 1.1x.
Net debt
$25.03M
Interest coverage
1.08x
Pyxis Tankers Inc.'s profit covers its interest bill about 1.1 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
PXS
BASELINE
Pyxis Tankers Inc.
Total debt $83.18M Interest coverage 1.08x This is the baseline the peer rows are being compared against.
Total debt $106.34M Interest coverage 0.30x -72% vs PXS Carries about 3.6x less debt cushion than PXS.
Total debt $0.00 Interest coverage -68.26x -100% vs PXS This peer has almost no interest-payment cushion compared with PXS.
Total debt $94.22M Interest coverage -0.01x -100% vs PXS This peer has almost no interest-payment cushion compared with PXS.
Total debt $310.05M Interest coverage 5.77x +434% vs PXS Carries about 5.3x more debt cushion than PXS.
Total debt $263.44K Interest coverage 17.17x +1,489% vs PXS Carries about 15.9x more debt cushion than PXS.
What you should know
The case for and against PXS
2 Rewards
1 Risk
Rewards
-
Returns 9.2% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 37.2% above its 5-year average P/E.
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)
8.60x
Forward P/E
4.83x
P/B
0.75x
P/S
1.70x
EV/EBITDA
5.07x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
60.1%
Operating margin
36.2%
Net margin
20.0%
ROE
9.2%
ROA
4.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.78x
Current ratio
4.72x
Quick ratio
4.64x
Total debt
$83.18M
Total cash
$58.15M
Growth
How the business has been compounding
Revenue TTM
$194.35M
Revenue 5Y CAGR
15.8%
EPS TTM
0.82
EPS 5Y CAGR
-43.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$62.17M
Free CF TTM
$-31.36M
FCF margin
-16.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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