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

DORIAN LPG LTD (NYSE:LPG) was identified as a decent value stock by our stock screener. NYSE:LPG scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Evaluating Valuation: NYSE:LPG

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:LPG, the assigned 8 reflects its valuation:

• LPG is valuated cheaply with a Price/Earnings ratio of 5.36.
• LPG's Price/Earnings ratio is rather cheap when compared to the industry. LPG is cheaper than 87.20% of the companies in the same industry.
• LPG is valuated cheaply when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio of 7.84, the valuation of LPG can be described as very cheap.
• LPG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LPG is cheaper than 71.09% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of LPG to the average of the S&P500 Index (20.02), we can say LPG is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPG indicates a somewhat cheap valuation: LPG is cheaper than 65.88% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, LPG is valued cheaply inside the industry as 89.57% of the companies are valued more expensively.
• The excellent profitability rating of LPG may justify a higher PE ratio.

Profitability Assessment of NYSE:LPG

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:LPG scores a 9 out of 10:

• The Return On Assets of LPG (16.73%) is better than 85.31% of its industry peers.
• The Return On Equity of LPG (30.03%) is better than 81.52% of its industry peers.
• LPG has a Return On Invested Capital of 14.96%. This is amongst the best in the industry. LPG outperforms 80.09% of its industry peers.
• The 3 year average ROIC (9.72%) for LPG is below the current ROIC(14.96%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 54.82%, LPG belongs to the top of the industry, outperforming 89.57% of the companies in the same industry.
• LPG's Profit Margin has improved in the last couple of years.
• LPG has a Operating Margin of 58.64%. This is amongst the best in the industry. LPG outperforms 91.47% of its industry peers.
• LPG's Operating Margin has improved in the last couple of years.
• LPG has a Gross Margin of 91.72%. This is amongst the best in the industry. LPG outperforms 95.73% of its industry peers.

Unpacking NYSE:LPG's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LPG has received a 8 out of 10:

• LPG has a better Altman-Z score (2.57) than 70.14% of its industry peers.
• The Debt to FCF ratio of LPG is 1.70, which is an excellent value as it means it would take LPG, only 1.70 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of LPG (1.70) is better than 77.73% 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.
• A Current Ratio of 3.62 indicates that LPG has no problem at all paying its short term obligations.
• LPG has a Current ratio of 3.62. This is amongst the best in the industry. LPG outperforms 85.78% of its industry peers.
• LPG has a Quick Ratio of 3.60. This indicates that LPG is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of LPG (3.60) is better than 86.26% of its industry peers.

Exploring NYSE:LPG's Growth

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 6 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 79.86% over the past year.
• Measured over the past years, LPG shows a very strong growth in Earnings Per Share. The EPS has been growing by 63.39% on average per year.
• The Revenue has grown by 43.89% in the past year. This is a very strong growth!
• The Revenue has been growing by 28.83% on average over the past years. This is a very strong growth!

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.