NYSE:LPG is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

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.

Evaluating Valuation: NYSE:LPG

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:LPG scores a 8 out of 10:

• The Price/Earnings ratio is 5.74, which indicates a rather cheap valuation of LPG.
• Based on the Price/Earnings ratio, LPG is valued cheaper than 85.51% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 28.05. LPG is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 9.41 indicates a reasonable valuation of LPG.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of LPG indicates a somewhat cheap valuation: LPG is cheaper than 68.22% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of LPG to the average of the S&P500 Index (20.30), we can say LPG is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, LPG is valued a bit cheaper than the industry average as 60.75% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of LPG indicates a somewhat cheap valuation: LPG is cheaper than 78.50% of the companies listed in the same industry.
• LPG's 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.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:LPG has earned a 8 out of 10:

• The Return On Assets of LPG (16.71%) is better than 84.11% of its industry peers.
• LPG has a better Return On Equity (30.91%) than 78.97% 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 78.04% of the companies in the same industry.
• The 3 year average ROIC (6.77%) for LPG is below the current ROIC(15.22%), indicating increased profibility in the last year.
• LPG has a better Profit Margin (55.01%) than 88.78% of its industry peers.
• LPG's Profit Margin has improved in the last couple of years.
• LPG has a better Operating Margin (59.85%) than 91.12% of its industry peers.
• LPG's Operating Margin has improved in the last couple of years.
• The Gross Margin of LPG (92.49%) is better than 96.26% of its industry peers.

Health Analysis for NYSE:LPG

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:LPG, the assigned 8 reflects its health status:

• The Altman-Z score of LPG (2.59) is better than 68.22% of its industry peers.
• 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.
• The Debt to FCF ratio of LPG (2.33) is better than 71.50% 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.
• LPG's Current ratio of 3.31 is amongst the best of the industry. LPG outperforms 82.71% of its industry peers.
• 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 has a better Quick ratio (3.29) than 83.18% of its industry peers.

Growth Analysis for NYSE:LPG

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:LPG has received a 5 out of 10:

• LPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 162.76%, which is quite impressive.
• Measured over the past years, LPG shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.53% on average per year.
• 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.

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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.