Navigator Holdings: Under Appreciated Long-Term Growth Potential
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Ronald Ferrie3.71K FollowersFollow5ShareSavePlay(9min)CommentsSummaryNavigator Holdings remains undervalued despite a multi-year track record of steady EBITDA growth and a robust newbuild program.NVGS's ongoing share buybacks, including a recent 5.4% reduction, and vessel divestitures provide hidden value and accretive capital allocation.The newbuild program, requiring $600m investment, is expected to drive a step change in EPS and support a 20% CAGR through 2028.I maintain a BUY rating with a $30 price target by 2028, citing strong fundamentals, disciplined capital returns, and a favorable vessel supply backdrop. Katya Slavashevich/iStock via Getty Images Thesis Navigator Holdings (NVGS) continued to demonstrate itself as a shipping company capable of slow and stable growth. Although the fourth quarter did not achieve any financial earnings records, the results were still quite solid.This article was written byRonald Ferrie3.71K FollowersFollowI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties for cash flow and long-term appreciation. My articles are to serve as a platform for presenting the underlying fundamentals and long-term potential of each equity/business.Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVGS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.