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Investors should take notice of NYSE:LPG—it offers a great deal for the fundamentals it presents.

By Mill Chart

Last update: Feb 13, 2024

Our stock screener has spotted DORIAN LPG LTD (NYSE:LPG) as an undervalued stock with solid fundamentals. NYSE:LPG shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Insights: NYSE:LPG

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:LPG has earned a 8 for valuation:

  • The Price/Earnings ratio is 4.69, which indicates a rather cheap valuation of LPG.
  • Compared to the rest of the industry, the Price/Earnings ratio of LPG indicates a rather cheap valuation: LPG is cheaper than 82.79% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.01, LPG is valued rather cheaply.
  • The Price/Forward Earnings ratio is 5.91, which indicates a rather cheap valuation of LPG.
  • Based on the Price/Forward Earnings ratio, LPG is valued cheaply inside the industry as 83.26% of the companies are valued more expensively.
  • LPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.61.
  • Based on the Enterprise Value to EBITDA ratio, LPG is valued a bit cheaper than 60.47% of the companies in the same industry.
  • LPG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LPG is cheaper than 80.00% of the companies in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • LPG has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Analysis 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 (16.71%) is better than 77.21% of its industry peers.
  • LPG has a better Return On Equity (30.91%) than 71.63% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 15.22%, LPG is in the better half of the industry, outperforming 69.30% of the companies in the same industry.
  • The last Return On Invested Capital (15.22%) for LPG is above the 3 year average (6.77%), which is a sign of increasing profitability.
  • LPG's Profit Margin of 55.01% is amongst the best of the industry. LPG outperforms 87.91% of its industry peers.
  • LPG's Profit Margin has improved in the last couple of years.
  • The Operating Margin of LPG (59.85%) is better than 89.77% of its industry peers.
  • In the last couple of years the Operating Margin of LPG has grown nicely.
  • The Gross Margin of LPG (92.49%) is better than 95.81% of its industry peers.

Assessing Health for NYSE:LPG

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:LPG scores a 8 out of 10:

  • Looking at the Altman-Z score, with a value of 2.36, LPG is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
  • LPG has a debt to FCF ratio of 2.33. This is a good value and a sign of high solvency as LPG would need 2.33 years to pay back of all of its debts.
  • LPG has a better Debt to FCF ratio (2.33) than 67.44% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for LPG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
  • A Current Ratio of 3.31 indicates that LPG has no problem at all paying its short term obligations.
  • LPG has a Current ratio of 3.31. This is amongst the best in the industry. LPG outperforms 85.12% of its industry peers.
  • A Quick Ratio of 3.29 indicates that LPG has no problem at all paying its short term obligations.
  • LPG has a better Quick ratio (3.29) than 86.51% of its industry peers.

Growth Examination for NYSE:LPG

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:LPG boasts a 5 out of 10:

  • The Earnings Per Share has grown by an impressive 162.76% 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
  • The Revenue has grown by 64.72% in the past year. This is a very strong growth!
  • 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.

Our latest full fundamental report of LPG contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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