NYSE:LPG stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jul 15, 2024

DORIAN LPG LTD (NYSE:LPG) has caught the attention of our stock screener as a great value stock. NYSE:LPG excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Assessing Valuation Metrics for NYSE:LPG

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:LPG boasts a 8 out of 10:

Based on the Price/Earnings ratio of 5.25, the valuation of LPG can be described as very cheap.
LPG's Price/Earnings ratio is rather cheap when compared to the industry. LPG is cheaper than 89.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.16, LPG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.68, the valuation of LPG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LPG indicates a somewhat cheap valuation: LPG is cheaper than 72.51% of the companies listed in the same industry.
LPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.66.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPG indicates a somewhat cheap valuation: LPG is cheaper than 67.30% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LPG indicates a rather cheap valuation: LPG is cheaper than 89.57% of the companies listed in the same industry.
The excellent profitability rating of LPG may justify a higher PE ratio.

Profitability Examination for NYSE:LPG

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:LPG, the assigned 9 is noteworthy for profitability:

With an excellent Return On Assets value of 16.73%, LPG belongs to the best of the industry, outperforming 85.31% of the companies in the same industry.
LPG has a better Return On Equity (30.03%) than 81.52% of its industry peers.
LPG's Return On Invested Capital of 14.96% is amongst the best of 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.
LPG has a Profit Margin of 54.82%. This is amongst the best in the industry. LPG outperforms 89.57% of its industry peers.
LPG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 58.64%, LPG belongs to the best of the industry, outperforming 91.47% of the companies in the same industry.
In the last couple of years the Operating Margin of LPG has grown nicely.
Looking at the Gross Margin, with a value of 91.72%, LPG belongs to the top of the industry, outperforming 95.73% of the companies in the same industry.

Health Analysis for NYSE:LPG

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

With a decent Altman-Z score value of 2.61, LPG is doing good in the industry, outperforming 69.67% of the companies in the same industry.
LPG has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of 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.
LPG has a Current Ratio of 3.62. 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 3.62, LPG belongs to the top of the industry, outperforming 85.31% of the companies in the same industry.
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.
LPG has a better Quick ratio (3.60) than 85.78% of its industry peers.

Deciphering NYSE:LPG's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:LPG has achieved a 5 out of 10:

LPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.86%, 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 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!

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

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

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.