Good for investors: Navios Holdings has a strong balance sheet



Cash distributions

For 4Q14, Navios Maritime Holdings (NM) is scheduled to distribute $0.06 per share on March 27, 2015, to shareholders as of record March 20, 2015. This indicates a dividend yield of almost 5.5%. The dividend payable for perpetual preferred stock, to its preferred equity holders, stands at $3.7 million on April 15, 2015.

In 2015, the total annual expected dividends to be paid stands at $40 million. Meanwhile, the dividends from public shareholders are estimated at $47.1 million in 2015. It’s important to note that $32.5 million is contributed from Navios Maritime Partners (NMM). Also, $14.6 million is contributed from Navios Maritime Acquisition (NNA). The PowerShares DB Oil Fund ETF (DBO) tracks the performance of crude oil.

Navios Maritime Partners and Safe Bulkers’ (SB) dividend yield stands at 14.45% and 5.16%, respectively.

Article continues below advertisement

Balance sheet

Navios Holdings has a strong balance sheet. It has low leverage levels and a healthy cash balance. As of December 31, 2014, the company recorded $250 million in cash—compared to $190 million in the same period last year.

The vessels’ port terminal and other fixed assets increased by 7% to $1.9 billion after the company took the delivery of three new vessels during 2014. Navios Logistics took the delivery of three push boats and 72 barges. Also, construction started for a new iron ore facility port in Uruguay.

With Navios Holdings adding three new facilities to finance three vessels, the bank debt increased by $51 million. Senior notes increased by $82 million after the refinancing of Navios Logistics’ bond in 2014. Navios Holdings doesn’t record any significant debt maturities until 2019. This gives the company exposure to a high cash balance. It can invest in any attractive market opportunities.

Navios Holdings’ debt-to-equity ratio stands at 143.58%. The debt-to-assets ratio stands at 57.58%.

Other shipping companies include Diana Shipping (DSX), DryShips (DRYS), Safe Bulkers (SB), and Navios Maritime Partners LP (NMM). They record debt-to-equity ratios of 35.8%, 149.58%, 67.07%, and 77.86%, respectively. Their debt-to-assets ratios were 56.39%, 43.33%, 39.72%, and 26.35%, respectively.


More From Market Realist