Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Navios Maritime Acquisition Corporation stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Navios Maritime has a trailing twelve months PE ratio of 5.41, as you can see in the chart below:
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna1.jpg)
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 20.04. If we focus on the long-term PE trend, Navios Maritime’s current PE level puts it slightly above its midpoint over the past two years.
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna2.jpg)
Further, the stock’s PE also compares favorably with the Zacks classified Transportation sector’s trailing twelve months PE ratio, which stands at 16.47. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna3.jpg)
However, we should point out that Navios Maritime has a forward PE ratio (price relative to this year’s earnings) of 22.71, so it is fair to expect an increase in the company’s share price in the near future.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Navios Maritime has a P/S ratio of about 0.91. This is significantly lower than the S&P 500 average, which comes in at 3.11 right now. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past two years.
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna4.jpg)
If anything, NNA is towards the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, Navios Maritime currently has a Zacks Value Style Score of ‘A’, putting it into the top 20% of all stocks we cover from this look. This makes Navios Maritime a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the PEG ratio for Navios Maritime is 1.51, a level that is slightly lower than the industry average of 1.69. The PEG ratio is a modified PE ratio that takes into account the stock’s earnings growth rate. Clearly, NNA is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though Navios Maritime might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘F’ and a Momentum score of ‘B’. This gives NNA a Zacks VGM score—or its overarching fundamental grade—of ‘C’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been mostly trending lower. The current year as well as the next year has seen one estimate go higher in the past sixty days compared to two lower.
Consequently, the current year consensus estimate has fallen by 12.5% in the past two months, while the next year estimate has decreased 15%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
This somewhat bearish trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.
Bottom Line
Navios Maritime is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Moreover, a strong industry rank (Top 42% out of more than 250 industries) further supports the growth potential of the stock.
However, with a Zacks Rank #3, it is hard to get too excited about this company overall. In fact, over the past two years, the Zacks Transportation – Shipping industry has underperformed the broader market, as you can see below:
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna6.jpg)
So, value investors might want to wait for estimates and analyst sentiment to turn around in this name first, but once that happens, this stock could be a compelling pick. Moreover, broader factors at the industry level support the growth potential of the company as well.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
Image: Bigstock
Is Navios Maritime (NNA) a Great Stock for Value Investors?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna1.jpg)
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna2.jpg)
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna3.jpg)
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna4.jpg)
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Navios Maritime Acquisition Corporation stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Navios Maritime has a trailing twelve months PE ratio of 5.41, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 20.04. If we focus on the long-term PE trend, Navios Maritime’s current PE level puts it slightly above its midpoint over the past two years.
Further, the stock’s PE also compares favorably with the Zacks classified Transportation sector’s trailing twelve months PE ratio, which stands at 16.47. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
However, we should point out that Navios Maritime has a forward PE ratio (price relative to this year’s earnings) of 22.71, so it is fair to expect an increase in the company’s share price in the near future.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Navios Maritime has a P/S ratio of about 0.91. This is significantly lower than the S&P 500 average, which comes in at 3.11 right now. Also, as we can see in the chart below, this is well below the highs for this stock in particular over the past two years.
If anything, NNA is towards the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate, Navios Maritime currently has a Zacks Value Style Score of ‘A’, putting it into the top 20% of all stocks we cover from this look. This makes Navios Maritime a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the PEG ratio for Navios Maritime is 1.51, a level that is slightly lower than the industry average of 1.69. The PEG ratio is a modified PE ratio that takes into account the stock’s earnings growth rate. Clearly, NNA is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though Navios Maritime might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘F’ and a Momentum score of ‘B’. This gives NNA a Zacks VGM score—or its overarching fundamental grade—of ‘C’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been mostly trending lower. The current year as well as the next year has seen one estimate go higher in the past sixty days compared to two lower.
Consequently, the current year consensus estimate has fallen by 12.5% in the past two months, while the next year estimate has decreased 15%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Navios Maritime Acquisition Corporation Price and Consensus
Navios Maritime Acquisition Corporation Price and Consensus | Navios Maritime Acquisition Corporation Quote
This somewhat bearish trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.
![](https://staticx-tuner.zacks.com/images/zadmin_tuner_image/nna6.jpg)
Bottom Line
Navios Maritime is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Moreover, a strong industry rank (Top 42% out of more than 250 industries) further supports the growth potential of the stock.
However, with a Zacks Rank #3, it is hard to get too excited about this company overall. In fact, over the past two years, the Zacks Transportation – Shipping industry has underperformed the broader market, as you can see below:
So, value investors might want to wait for estimates and analyst sentiment to turn around in this name first, but once that happens, this stock could be a compelling pick. Moreover, broader factors at the industry level support the growth potential of the company as well.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>