Section1: Company Overview and Fundamental Insights
1.1 Company Overview:
Navigator Global Investments Limited (ASX: NGI) is an asset management company catering investors globally by providing investment management products and services through Lighthouse Investment Partners, LLC (Lighthouse) (wholly owned subsidiary) and six other alternative asset management companies.
1.2 The Key Positives, Negatives, Investment Highlights and Risks
1.3 Top 10 Shareholders:
The top 10 shareholders collectively form ~59.34% of the total shareholdings. Neuberger Berman, LLC [Activist] holds the maximum number of shares with ~17.19% shareholding, followed by Perennial Value Management Ltd. with ~11.95%, as depicted in the chart below:
1.4 Key Metrics:
NGI’s asset-to-equity ratio is placed at 1.63x in FY22 as compared to 5.09x of industry median. Below mentioned are some key metrics of NGI:
Section 2: Business Updates and Financial Highlights
2.1 Recent Developments: The below picture shows the recent updates:
2.2 Key Takeaways from Recent Results & Revenue Bifurcated: Below mentioned FY22 result highlights and segmentation of revenue.
2.2 Strategy updates: NGI amended Dividend Policy from FY23, where the company will be paying a single annual dividend of between US 3.0-4.0 cents per share on a financial year basis through FY25, totalling the range of USD 9.1mn and USD 12.2mn of payments on current outstanding shares and convertible notes. Below is the summary of key strategy updates.
Section 3: Key Risks and Outlook
Section 4: Stock Recommendation Summary
4.1 Price Performance and Technical Summary:
4.2 Fundamental Valuation
Valuation Methodology: P/BV Multiple Based Relative Valuation (Illustrative)
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 6, 2022. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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