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1. Company Snapshot

1.a. Company Description

Navigator Holdings Ltd.owns and operates a fleet of liquefied gas carriers worldwide.The company provides international and regional seaborne transportation services of liquefied petroleum gas, petrochemical gases, and ammonia for energy companies, industrial users, and commodity traders.


As of April 14, 2022, it operated a fleet of 53 semi- or fully-refrigerated liquefied gas carriers.The company was founded in 1997 and is based in London, the United Kingdom.

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1.b. Last Insights on NVGS

Navigator Holdings Ltd.'s recent performance was positively driven by its Q3 2025 earnings release, which met expectations with quarterly earnings of $0.36 per share, a 24% increase from the previous year. The company's revised capital return policy, announced on November 4, 2025, also contributed to the positive momentum. Additionally, Bessemer Group Inc.'s new investment in the company, acquiring 27,096 shares, valued at approximately $383,000, signaled confidence from institutional investors. The company's Q3 2025 earnings call highlighted its strong financial position.

1.c. Company Highlights

2. Navigator Holdings' Q3 2025 Earnings: A Strong Recovery

Navigator Holdings reported a robust financial performance in Q3 2025, with revenues reaching $153 million, up 18% from the previous quarter and 8% from the same period last year. The company's EBITDA reached $86 million, the highest on record, and adjusted EBITDA was $77 million, excluding a book gain from the sale of Navigator Gemini. The earnings per share (EPS) came in at $0.36, in line with analysts' estimates. The company's strong financial performance was driven by higher time charter equivalent rates and robust utilization, with average TCE rates reaching $30,966 per day, a 10-year high.

Publication Date: Nov -30

📋 Highlights
  • Record EBITDA:: Achieved $86M EBITDA (highest ever) and $77M adjusted EBITDA (excluding Navigator Gemini book gain).
  • Strong Revenue Growth:: Q3 revenue rose 18% QoQ to $153M and 8% YoY, driven by higher time charter equivalent (TCE) rates ($30,966/day) and 89.3% fleet utilization.
  • Robust Liquidity:: Maintained $308M in total liquidity, with $216M in cash, supporting newbuild financing and debt repayments.
  • Enhanced Capital Returns:: Increased payout to 30% of net income and raised dividend to $0.07/share (40% increase), alongside $2.1M in share repurchases.
  • Fleet Renewal & Expansion:: Proceeding with 6 newbuild vessels ($480M gross CapEx) and acquiring 15.1% more equity in 5 Greater Bay joint venture vessels for $16.8M.

Operational Highlights

The company's commercial performance was supported by a steep recovery in its ethylene spot fleet and a robust semi-refrigerated LPG vessels fleet. Utilization for semi-refrigerated vessels climbed to 98%, and fully refrigerated vessels saw incremental demand from LPG and long-haul butadiene cargoes. Despite trade and tariff uncertainty affecting ethylene-capable vessels, utilization for these vessels averaged around 85%. As Mads Zacho, CEO, stated, "We're back on track, with a 10-year record average TCE and utilization climbing back above 90%."

Balance Sheet and Liquidity

Navigator's balance sheet remains strong, with a cash position of $216 million and total liquidity of $308 million. The company's net debt adjusted EBITDA last 12 months sits at a comfortable 2.6x as of September 30, 2025. The estimated all-in cash breakeven for 2025 is $20,510 per day per vessel, significantly below its average TCE revenue for the third quarter.

Valuation and Outlook

With a P/E Ratio of 13.95 and an EV/EBITDA of 6.81, the market seems to have priced in Navigator's strong financial performance. Analysts estimate revenue growth at 0.3% for next year. The company's return of capital policy has been updated, with a fixed quarterly cash dividend of $0.07, up 40% from $0.05 per share, and an increase in the payout percentage to 30% of net income. Navigator is confident in the continued growth of U.S. NGL production and export infrastructure, which will support its transport demand.

Growth Initiatives

The company is planning to acquire 2 new 51,000 cubic meter ammonia-fueled liquefied ammonia carriers, with a net price of $78 million each. The company's ethylene export terminal has seen strong throughput volumes, reaching 270,000 tons during the third quarter. Navigator is in active dialogue with multiple new customers for potential offtake contracts, and its fleet renewal program continues, with the sale of older vessels and replacement with more modern tonnage.

3. NewsRoom

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Best Income Stocks to Buy for Dec. 1

Dec -01

Source: zacks.com

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Navigator Holdings (NVGS) Is a Great Choice for 'Trend' Investors, Here's Why

Nov -27

Source: zacks.com

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Navigator Global Investments Limited (HFAHF) Shareholder/Analyst Call Transcript

Nov -19

Source: seekingalpha.com

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Navigator Holdings: Cheap US Energy Remains The Company's North Star

Nov -17

Source: seekingalpha.com

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Santander Bank Launches Navigator Global to Empower U.S. Businesses Expanding Internationally

Nov -06

Source: businesswire.com

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Navigator Holdings Ltd. (NVGS) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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MineHub Expands Market Opportunity with Launch of Navigator: Providing Carrier-Agnostic, Real-Time Map Visibility

Nov -05

Source: newsfilecorp.com

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Navigator Holdings (NVGS) Meets Q3 Earnings Estimates

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.20%)

6. Segments

Time Charters

Expected Growth: 14.0%

Navigator Holdings Ltd.'s 14.0% growth in Time Charters is driven by increasing demand for liquefied petroleum gas (LPG) and petrochemical transportation, coupled with a strong fleet utilization rate and rising charter rates. Additionally, the company's strategic partnerships and expansion into new markets have contributed to its growth momentum.

Voyage Charters

Expected Growth: 15.0%

Navigator Holdings Ltd.'s 15.0% growth in Voyage Charters is driven by increasing demand for seaborne transportation of petrochemicals and liquefied petroleum gases, coupled with a strong tanker market and limited vessel supply. Additionally, the company's strategic fleet expansion and optimization initiatives have improved operational efficiency, contributing to the segment's growth.

Unigas Pool

Expected Growth: 13.0%

Unigas Pool's 13.0% growth is driven by increasing demand for liquefied petroleum gas (LPG) and petrochemical transportation, Navigator Holdings' strategic fleet expansion and modernization, and growing market share in the mid-size gas carrier segment.

Voyage Charters from Luna Pool Collaborative Arrangements

Expected Growth: 12.0%

Strong demand for seaborne LPG transportation, increasing global LPG production, and strategic partnerships with major energy companies drive the 12.0% growth in Voyage Charters from Luna Pool Collaborative Arrangements with Navigator Holdings Ltd. Additionally, the company's modern fleet and operational efficiencies contribute to the growth.

7. Detailed Products

LNG Shipping

Navigator Holdings Ltd. provides liquefied natural gas (LNG) shipping services, transporting LNG from production facilities to regasification terminals around the world.

Ethylene Shipping

The company offers ethylene shipping services, transporting ethylene from production facilities to manufacturing plants, supporting the production of plastics and other petrochemicals.

LPG Shipping

Navigator Holdings Ltd. provides liquefied petroleum gas (LPG) shipping services, transporting LPG from production facilities to storage terminals and distribution centers.

Petroleum Product Shipping

The company offers petroleum product shipping services, transporting refined petroleum products such as gasoline, diesel, and jet fuel from refineries to distribution centers.

Chemical Shipping

Navigator Holdings Ltd. provides chemical shipping services, transporting a range of chemical products from production facilities to manufacturing plants and distribution centers.

8. Navigator Holdings Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Navigator Holdings Ltd. is medium due to the availability of alternative shipping companies and transportation methods.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong market position and limited alternatives for customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few large suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the shipping industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the shipping industry, with many companies competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.76%
Debt Cost 8.07%
Equity Weight 58.24%
Equity Cost 11.19%
WACC 9.88%
Leverage 71.71%

11. Quality Control: Navigator Holdings Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Teekay

A-Score: 7.0/10

Value: 9.4

Growth: 6.2

Quality: 7.5

Yield: 10.0

Momentum: 3.5

Volatility: 5.3

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Deutsche Rohstoff

A-Score: 6.5/10

Value: 7.6

Growth: 9.1

Quality: 6.1

Yield: 5.6

Momentum: 8.0

Volatility: 2.7

1-Year Total Return ->

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Fluxys Belgium

A-Score: 5.7/10

Value: 3.9

Growth: 3.9

Quality: 3.9

Yield: 9.4

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

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Dynagas LNG Partners

A-Score: 5.6/10

Value: 9.4

Growth: 4.7

Quality: 7.1

Yield: 5.6

Momentum: 3.0

Volatility: 4.0

1-Year Total Return ->

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Navigator Holdings

A-Score: 4.9/10

Value: 6.4

Growth: 6.4

Quality: 4.8

Yield: 1.9

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Vorwerk

A-Score: 4.2/10

Value: 3.0

Growth: 3.3

Quality: 7.5

Yield: 0.6

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.76$

Current Price

17.76$

Potential

-0.00%

Expected Cash-Flows