For those who appreciate value investing, NYSE:LPG is a compelling option with its solid fundamentals.

Last update: Dec 11, 2023

Our stock screening tool has pinpointed DORIAN LPG LTD (NYSE:LPG) as an undervalued stock option. NYSE:LPG retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Understanding NYSE:LPG's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:LPG was assigned a score of 8 for valuation:

A Price/Earnings ratio of 6.26 indicates a rather cheap valuation of LPG.
75.00% of the companies in the same industry are more expensive than LPG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.54. LPG is valued rather cheaply when compared to this.
LPG is valuated cheaply with a Price/Forward Earnings ratio of 7.00.
LPG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LPG is cheaper than 71.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.22, LPG is valued rather cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LPG indicates a somewhat cheap valuation: LPG is cheaper than 75.93% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LPG may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:LPG?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LPG was assigned a score of 8 for profitability:

The Return On Assets of LPG (14.32%) is better than 73.15% of its industry peers.
LPG's Return On Equity of 27.67% is fine compared to the rest of the industry. LPG outperforms 67.13% of its industry peers.
The Return On Invested Capital of LPG (13.07%) is better than 62.96% of its industry peers.
The last Return On Invested Capital (13.07%) for LPG is above the 3 year average (6.77%), which is a sign of increasing profitability.
LPG has a Profit Margin of 51.80%. This is amongst the best in the industry. LPG outperforms 87.96% of its industry peers.
In the last couple of years the Profit Margin of LPG has grown nicely.
LPG's Operating Margin of 56.31% is amongst the best of the industry. LPG outperforms 86.57% of its industry peers.
LPG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 92.30%, LPG belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.

Deciphering NYSE:LPG's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LPG has achieved a 7 out of 10:

LPG's Altman-Z score of 2.24 is fine compared to the rest of the industry. LPG outperforms 60.65% of its industry peers.
The Debt to FCF ratio of LPG is 2.66, which is a good value as it means it would take LPG, 2.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.66, LPG is in the better half of the industry, outperforming 64.35% of the companies in the same industry.
A Current Ratio of 2.63 indicates that LPG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.63, LPG is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
A Quick Ratio of 2.61 indicates that LPG has no problem at all paying its short term obligations.
LPG has a Quick ratio of 2.61. This is in the better half of the industry: LPG outperforms 79.63% of its industry peers.

What does the Growth looks like for NYSE:LPG

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:LPG scores a 5 out of 10:

The Earnings Per Share has grown by an impressive 222.56% over the past year.
The Earnings Per Share has been growing by 20.53% on average over the past years. This is a very strong growth
Looking at the last year, LPG shows a very strong growth in Revenue. The Revenue has grown by 63.85%.
LPG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.59% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of LPG

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.