ENXTLS:NVG

Stock Analysis Report

Executive Summary

The Navigator Company, S.A. manufactures and markets pulp and paper products in Portugal.


Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

How has Navigator Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NVG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

NVG

-1.4%

PT Forestry

1.7%

PT Market


1 Year Return

-48.1%

NVG

-19.1%

PT Forestry

-14.2%

PT Market

Return vs Industry: NVG underperformed the Portuguese Forestry industry which returned -19.1% over the past year.

Return vs Market: NVG underperformed the Portuguese Market which returned -14.2% over the past year.


Shareholder returns

NVGIndustryMarket
7 Day-0.4%-1.4%1.7%
30 Day-23.5%-13.9%-16.0%
90 Day-39.9%-23.4%-17.2%
1 Year-42.1%-48.1%-13.5%-19.1%-10.4%-14.2%
3 Year-26.9%-42.9%7.3%-28.6%0.9%-10.9%
5 Year-24.8%-53.7%40.0%-12.6%-15.3%-7.4%

Price Volatility Vs. Market

How volatile is Navigator Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Navigator Company undervalued compared to its fair value and its price relative to the market?

48.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NVG (€2.13) is trading below our estimate of fair value (€4.11)

Significantly Below Fair Value: NVG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NVG is good value based on its PE Ratio (9x) compared to the Forestry industry average (9x).

PE vs Market: NVG is good value based on its PE Ratio (9x) compared to the Portuguese market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: NVG is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: NVG is overvalued based on its PB Ratio (1.5x) compared to the XE Forestry industry average (0.9x).


Next Steps

Future Growth

How is Navigator Company forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVG's forecast earnings growth (5.2% per year) is above the savings rate (0.4%).

Earnings vs Market: NVG's earnings (5.2% per year) are forecast to grow slower than the Portuguese market (9.3% per year).

High Growth Earnings: NVG's earnings are forecast to grow, but not significantly.

Revenue vs Market: NVG's revenue (1.4% per year) is forecast to grow slower than the Portuguese market (4.1% per year).

High Growth Revenue: NVG's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NVG's Return on Equity is forecast to be low in 3 years time (16.7%).


Next Steps

Past Performance

How has Navigator Company performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVG has high quality earnings.

Growing Profit Margin: NVG's current net profit margins (10%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: NVG's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: NVG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NVG had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Forestry industry average (-10.7%).


Return on Equity

High ROE: NVG's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is Navigator Company's financial position?


Financial Position Analysis

Short Term Liabilities: NVG's short term assets (€634.4M) exceed its short term liabilities (€462.1M).

Long Term Liabilities: NVG's short term assets (€634.4M) do not cover its long term liabilities (€1.0B).


Debt to Equity History and Analysis

Debt Level: NVG's debt to equity ratio (85.4%) is considered high.

Reducing Debt: NVG's debt to equity ratio has increased from 53.1% to 85.4% over the past 5 years.

Debt Coverage: NVG's debt is well covered by operating cash flow (42.8%).

Interest Coverage: NVG's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet

Inventory Level: NVG has a high level of physical assets or inventory.

Debt Coverage by Assets: NVG's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Navigator Company's current dividend yield, its reliability and sustainability?

12.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NVG's dividend (13.13%) is higher than the bottom 25% of dividend payers in the Portuguese market (2.98%).

High Dividend: NVG's dividend (13.13%) is in the top 25% of dividend payers in the Portuguese market (8.21%)


Stability and Growth of Payments

Stable Dividend: NVG's dividend payments have been volatile in the past 10 years.

Growing Dividend: NVG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (118.1%), NVG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NVG's dividends in 3 years are forecast to be covered by earnings (59.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average board tenure


CEO

António José Redondo

0.25

Tenure

€25,000

Compensation

Mr. António José Pereira Redondo is the Chief Executive Officer at The Navigator Company, S.A. since January 1, 2020. He served as Head of Pulp, Paper, Sales, Marketing, Communication, Image and Product De ...


CEO Compensation Analysis

Compensation vs Market: António José's total compensation ($USD27.34K) is below average for companies of similar size in the Portuguese market ($USD1.42M).

Compensation vs Earnings: António José's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
António José Redondo
CEO, Member of Executive Board & Executive Director0.25yr€25.00kno data
Jose Fernando Morais de Araújo
Member of Executive Board & Executive Director13yrs€25.00kno data
Nuno Miguel de Araújo dos Santos
Member of Executive Board & Executive Director5yrs€464.48kno data
João Paulo Oliveira
Member of Executive Board & Executive Director4.75yrs€389.48kno data
Adriano da Silva Silveira
Non-Executive Director13.25yrsno datano data
Manuel Soares Regalado
Non-Executive Director16.25yrs€77.00kno data
Vítor Manuel Galvão Novais Gonçalves
Non-Executive Director4.5yrs€98.00kno data
Ricardo dos Santos Pacheco Pires
Non-Executive Director5.25yrsno datano data
João Nuno de Sottomayor de Castello Branco
Chairman of the Boardno datano datano data
José de Oliveira Vitorino
President of Audit Board2.25yrsno datano data

5.3yrs

Average Tenure

Experienced Board: NVG's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Navigator Company, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Navigator Company, S.A.
  • Ticker: NVG
  • Exchange: ENXTLS
  • Founded: 1953
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: €1.543b
  • Shares outstanding: 711.18m
  • Website: https://www.thenavigatorcompany.com

Number of Employees


Location

  • The Navigator Company, S.A.
  • Mitrena
  • Apartado 55
  • Setúbal
  • Lisbon
  • 2901-861
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POEL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1995
NVGENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURJul 1995
PO9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1995
0KLOLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1995
NVGUBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1995
NVG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 1995

Biography

The Navigator Company, S.A. manufactures and markets pulp and paper products in Portugal. It operates through Market Pulp, UWF Paper, Tissue Paper, and Other segments. The company offers its products under the Inacopia, Pioneer, Target, Multioffice, Discovery, and Navigator brands for home and office use. It also produces forestry plants, bleached eucalyptus Kraft pulp, and pellets; and generates electricity from biomass. The company also exports its products to approximately 130 countries, such as Europe, Africa, the Middle East, North America, and internationally. The company was formerly known as Portucel, S.A. and changed its name to The Navigator Company, S.A. in February 2016. The Navigator Company, S.A. was founded in 1953 and is headquartered in Setúbal, Portugal. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 21:51
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.