NYSE:LPG is probably undervalued for the fundamentals it is displaying.

DORIAN LPG LTD (NYSE:LPG) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:LPG showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Assessing Valuation for NYSE:LPG

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:LPG has received a 9 out of 10:

• LPG is valuated cheaply with a Price/Earnings ratio of 4.74.
• Based on the Price/Earnings ratio, LPG is valued cheaper than 84.58% of the companies in the same industry.
• When comparing the Price/Earnings ratio of LPG to the average of the S&P500 Index (25.65), we can say LPG is valued rather cheaply.
• LPG is valuated cheaply with a Price/Forward Earnings ratio of 5.98.
• LPG's Price/Forward Earnings ratio is rather cheap when compared to the industry. LPG is cheaper than 84.58% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 21.73. LPG is valued rather cheaply when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPG indicates a somewhat cheap valuation: LPG is cheaper than 62.62% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, LPG is valued cheaply inside the industry as 81.31% of the companies are valued more expensively.
• LPG's 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.

Assessing 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:

• LPG has a better Return On Assets (16.71%) than 80.37% of its industry peers.
• The Return On Equity of LPG (30.91%) is better than 75.23% of its industry peers.
• LPG's Return On Invested Capital of 15.22% is fine compared to the rest of the industry. LPG outperforms 75.23% of its industry peers.
• The 3 year average ROIC (6.77%) for LPG is below the current ROIC(15.22%), indicating increased profibility in the last year.
• LPG's Profit Margin of 55.01% is amongst the best of the industry. LPG outperforms 88.32% of its industry peers.
• LPG's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 59.85%, LPG belongs to the best of the industry, outperforming 90.19% of the companies in the same industry.
• In the last couple of years the Operating Margin of LPG has grown nicely.
• LPG has a Gross Margin of 92.49%. This is amongst the best in the industry. LPG outperforms 95.33% of its industry peers.

Unpacking NYSE:LPG's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:LPG, the assigned 8 for health provides valuable insights:

• Looking at the Altman-Z score, with a value of 2.37, LPG is in the better half of the industry, outperforming 64.49% of the companies in the same industry.
• The Debt to FCF ratio of LPG is 2.33, which is a good value as it means it would take LPG, 2.33 years of fcf income to pay off all of its debts.
• LPG has a better Debt to FCF ratio (2.33) than 70.56% of its industry peers.
• Although LPG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• LPG has a Current Ratio of 3.31. This indicates that LPG is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 3.31, LPG belongs to the top of the industry, outperforming 84.11% of the companies in the same industry.
• LPG has a Quick Ratio of 3.29. This indicates that LPG is financially healthy and has no problem in meeting its short term obligations.
• LPG's Quick ratio of 3.29 is amongst the best of the industry. LPG outperforms 85.05% of its industry peers.

A Closer Look at Growth for NYSE:LPG

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:LPG, the assigned 5 reflects its growth potential:

• 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!
• The Revenue has been growing by 19.59% on average over the past years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of LPG for a complete fundamental analysis.

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.