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

Last update: Aug 6, 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.

Valuation Analysis for 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:

With a Price/Earnings ratio of 4.86, the valuation of LPG can be described as very cheap.
Based on the Price/Earnings ratio, LPG is valued cheaper than 89.95% of the companies in the same industry.
LPG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.44.
LPG is valuated cheaply with a Price/Forward Earnings ratio of 6.71.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LPG indicates a somewhat cheap valuation: LPG is cheaper than 75.12% 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 19.90.
66.51% of the companies in the same industry are more expensive than LPG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LPG is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
LPG has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding NYSE:LPG's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:LPG has achieved a 8:

Looking at the Return On Assets, with a value of 16.73%, LPG belongs to the top of the industry, outperforming 86.60% of the companies in the same industry.
LPG has a better Return On Equity (30.03%) than 82.30% of its industry peers.
LPG has a better Return On Invested Capital (14.96%) than 79.90% of its industry peers.
The last Return On Invested Capital (14.96%) for LPG is above the 3 year average (9.72%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 54.82%, LPG belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
LPG's Profit Margin has improved in the last couple of years.
The Operating Margin of LPG (58.64%) is better than 91.39% of its industry peers.
In the last couple of years the Operating Margin of LPG has grown nicely.
LPG's Gross Margin of 91.72% is amongst the best of the industry. LPG outperforms 95.69% of its industry peers.

ChartMill's Evaluation of Health

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:

The Altman-Z score of LPG (2.55) is better than 68.90% of its industry peers.
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.
LPG's Debt to FCF ratio of 1.70 is fine compared to the rest of the industry. LPG outperforms 78.47% 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.
LPG's Current ratio of 3.62 is amongst the best of the industry. LPG outperforms 85.17% 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.
Looking at the Quick ratio, with a value of 3.60, LPG belongs to the top of the industry, outperforming 85.65% of the companies in the same industry.

A Closer Look at Growth for NYSE:LPG

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:LPG was assigned a score of 5 for growth:

LPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.88%, which is quite impressive.
LPG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 63.39% yearly.
Looking at the last year, LPG shows a very strong growth in Revenue. The Revenue has grown by 43.88%.
Measured over the past years, LPG shows a very strong growth in Revenue. The Revenue has been growing by 28.83% on average per year.

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

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

Disclaimer

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.