March 2, 2025
Pyxis Tankers (PXS) is a disciplined, growth-oriented shipping company with a modern eco-fleet that positions it for long-term success. With a focus on mid-sized, eco-efficient vessels, strategic chartering, and a strong financial foundation, the company is well-positioned to capitalize on opportunities in the shipping industry.
(1) Pyxis Tankers operates a fleet designed for versatility, low operating costs, and fuel efficiency. The company currently owns:
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- Three medium-range (MR) product tankers
- 2.2 dry bulk carriers
This modern, eco-efficient fleet allows Pyxis to remain competitive while ensuring resilience in demand-driven markets. With significant liquidity (“dry powder”) available, the company is actively evaluating the acquisition of up to two additional vessels, further expanding its growth potential.
(2) Pyxis has cultivated long-standing relationships with top-tier global customers, ensuring stability and operational efficiency.
As of January 24th, 2025, the company has secured:
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- 72% of available days for Q1 2025 booked for MR tankers at an average TCE rate of $24,750/day
- 68% of available days for bulkers booked at an average estimated TCE rate of $15,400/day
With five vessels under short-term time charters and one on a spot voyage, Pyxis Tankers is well-positioned to benefit from rising charter rates, should the market continue to strengthen.
(3) One of Pyxis Tankers’ key advantages is its lean cost structure, which creates operating leverage as charter rates increase. The company maintains:
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- A primarily fixed cost structure, enabling improved earnings potential
- Highly competitive daily operational costs per vessel, compared to U.S.-listed peers
- A solid balance sheet with strong liquidity and modest leverage
This disciplined financial management allows Pyxis to remain resilient even in volatile market conditions while continuing to pursue strategic growth opportunities.
(4) The company is led by a highly experienced and incentivized management team, boasting over 100 years of combined expertise in the shipping and capital markets sectors. Key leadership highlights include:
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- Founder & CEO holds ~57% of shares, aligning his interests with shareholders
- A well-respected Board of Directors, consisting of industry veterans with deep sector knowledge
This level of expertise and leadership stability ensures that Pyxis remains agile, strategic, and disciplined in navigating market cycles.
(5) Despite ongoing market uncertainty, Pyxis Tankers is well-positioned due to constructive demand fundamentals for both the product tanker and dry bulk sectors. Key valuation drivers include:
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- Solid global GDP growth supporting shipping demand
- Limited vessel supply growth, creating favorable industry dynamics
- A proven track record of navigating volatile shipping markets
With compelling valuation metrics and a strong financial foundation, Pyxis presents a high-value investment opportunity with significant upside potential.
Pyxis Tankers’ combination of a modern, efficient fleet, strong customer relationships, disciplined financial management, and experienced leadership makes it a standout player in the shipping sector. With continued strategic growth and a focus on operational efficiency, PXS is well-positioned for long-term success in the dynamic global shipping market.
PXS’s market cap is $37.9 million, while its enterprise value is $81.9 million.
Here are the metrics of cheapness:
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- EV/EBITDA = 1.74
- P/E = 1.27
- P/B = 0.37
- P/CF = 2.71
- P/S = 0.81
ROE (return on equity) is 36.6%, which is excellent. However, earnings may decline in the short term.
The Piotroski F_Score is 6, which is decent.
Insider ownership is outstanding at 57%. Cash is $42.4 million while debt is $86.4 million. TL/TA (total liabilities / total assets) is decent at 44.5%.
Intrinsic value scenarios:
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- Low case: If there’s a bear market and/or a recession, the stock could decline. Also, the limited fleet size puts the company more at risk for any unforeseen maintenance or damages.
- Mid case: Pyxis Tankers should have a P/CF of at least 5. That would put the stock at $6.52, which is 85% higher than today’s $3.53.
- High case: The company should trade at book value of $9.54. That is 170% higher than today’s $3.53.
RISKS
There could be a bear market and/or a recession, during which shipping rates would likely fall leading to lower earnings and a lower stock price.
Limited fleet size puts the company more at risk for any unforeseen maintenance or damages.
BOOLE MICROCAP FUND
An equal weighted group of micro caps generally far outperforms an equal weighted (or cap-weighted) group of larger stocks over time. See the historical chart here: https://boolefund.com/best-performers-microcap-stocks/
This outperformance increases significantly by focusing on cheap micro caps. Performance can be further boosted by isolating cheap microcap companies that show improving fundamentals. We rank microcap stocks based on these and similar criteria.
There are roughly 10-20 positions in the portfolio. The size of each position is determined by its rank. Typically the largest position is 15-20% (at cost), while the average position is 8-10% (at cost). Positions are held for 3 to 5 years unless a stock approachesintrinsic value sooner or an error has been discovered.
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Disclosures: Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of Boole Capital, LLC.