As 2011 comes to a close, it's a great time to look back at what happened to the stocks that interest you. By making sure you know the important things that a company accomplished -- as well as the setbacks it experienced -- you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Navios Maritime Holdings
Stats on Navios Maritime Holdings
|2011 YTD Return||(29.4%)|
|Market Cap||$358 million|
|1-Year Revenue Growth||11.3%|
|1-Year Earnings Growth||(21.6%)|
|Cash / Debt||$195 million / $1.48 billion|
|CAPS Rating (out of 5)||****|
Sources: S&P Capital IQ and Motley Fool CAPS.
Why did Navios sink this year?
As badly as shares of Navios performed this year, they actually represent fairly good results compared with the rest of the industry. Eagle Bulk Shipping and Excel Maritime
The declines stem from continuing weakness in the Baltic Dry Index, the benchmark by which bulk shippers measure demand for their vessels. Although the BDI was flat this year, it's still down 85% since mid-2008. That hasn't stopped operators like Genco Shipping & Trading
To deal with the bad conditions, Navios is taking steps to stand out from the wreckage of its industry. The company got a favorable rating from one Wall Street analyst after it posted revenue and EBITDA gains in its most recent quarter. More important, Navios has branched out into logistics, which makes the company more diversified than competitors that focus solely on dry bulk shipping.
Eventually, though, the entire industry will have to deal with the underlying issue of overcapacity. Whether a big upswing in the global economy or contraction in the shipping industry proves to be the factor that gets supply and demand back toward equilibrium remains to be seen, but until the situation resolves itself, Navios could continue to see choppy waters for the foreseeable future.
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Click here to add Navios Maritime Holdings to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.