Shares of Navios Maritime Holdings Inc (NM) is moving on volatility today -1.61% or $-0.02 rom the open. The NYSE listed company saw a recent bid of $1.22 on 237385 volume. Dedicated investors tend to spend a lot of time trying to decipher the correct procedure for beating the stock market. This may involve figuring out a proper strategy, and deciding which stocks to start with when constructing a portfolio. Building a portfolio does not have to be a frantic race. In fact, not rushing into things may end up putting the investor in a good position to succeed. There are times when tough decisions need to be made when dealing with the equity market. Spending enough time to assess all the possibilities before making an investing decision may pay off down the road. As most investors know, there is no magic formula for coming out a winner in the stock market. Acquiring the most possible knowledge about the markets and individual stocks can play a vital role in the long-term success of the individual investor.
Now let’s take a look at how the fundamentals are stacking up for Navios Maritime Holdings Inc (NM). Fundamental analysis takes into consideration market, industry and stock conditions to help determine if the shares are correctly valued. Navios Maritime Holdings Inc currently has a yearly EPS of -2.86. This number is derived from the total net income divided by shares outstanding. In other words, EPS reveals how profitable a company is on a share owner basis.
Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. Navios Maritime Holdings Inc (NM) currently has Return on Equity of -38.86. ROE is a ratio that measures profits generated from the investments received from shareholders. In other words, the ratio reveals how effective the firm is at turning shareholder investment into company profits. A company with high ROE typically reflects well on management and how well a company is run at a high level. A firm with a lower ROE might encourage potential investors to dig further to see why profits aren’t being generated from shareholder money.
Another ratio we can look at is the Return on Invested Capital or more commonly referred to as ROIC. Navios Maritime Holdings Inc (NM) has a current ROIC of -13.67. ROIC is calculated by dividing Net Income - Dividends by Total Capital Invested.
Similar to ROE, ROIC measures how effectively company management is using invested capital to generate company income. A high ROIC number typically reflects positively on company management while a low number typically reflects the opposite.
Turning to Return on Assets or ROA, Navios Maritime Holdings Inc (NM) has a current ROA of -11.96. This is a profitability ratio that measures net income generated from total company assets during a given period. This ratio reveals how quick a company can turn it’s assets into profits. In other words, the ratio provides insight into the profitability of a firm’s assets. The ratio is calculated by dividing total net income by the average total assets. A higher ROA compared to peers in the same industry, would suggest that company management is able to effectively generate profits from their assets. Similar to the other ratios, a lower number might raise red flags about management’s ability when compared to other companies in a similar sector.