For those who appreciate value investing, NYSE:LPG is a compelling option with its solid fundamentals.

Last update: Oct 16, 2024

Our stock screener has singled out DORIAN LPG LTD (NYSE:LPG) as a stellar value proposition. NYSE:LPG not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

What does the Valuation looks like 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:

Based on the Price/Earnings ratio of 4.39, 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 92.72% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 31.61. LPG is valued rather cheaply when compared to this.
LPG is valuated cheaply with a Price/Forward Earnings ratio of 5.86.
Based on the Price/Forward Earnings ratio, LPG is valued cheaper than 81.07% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LPG to the average of the S&P500 Index (22.63), we can say LPG is valued rather cheaply.
LPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LPG is cheaper than 74.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LPG is valued cheaper than 88.83% of the companies in the same industry.
The excellent profitability rating of LPG may justify a higher PE ratio.

Understanding NYSE:LPG's 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 9 out of 10:

The Return On Assets of LPG (16.06%) is better than 86.89% of its industry peers.
With an excellent Return On Equity value of 27.41%, LPG belongs to the best of the industry, outperforming 83.01% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.34%, LPG belongs to the best of the industry, outperforming 80.58% of the companies in the same industry.
The 3 year average ROIC (9.72%) for LPG is below the current ROIC(14.34%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 54.48%, LPG belongs to the top of the industry, outperforming 90.78% of the companies in the same industry.
LPG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 58.33%, LPG belongs to the best of the industry, outperforming 91.26% of the companies in the same industry.
In the last couple of years the Operating Margin of LPG has grown nicely.
LPG has a better Gross Margin (91.67%) than 95.63% of its industry peers.

Analyzing Health Metrics

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:

Looking at the Altman-Z score, with a value of 2.46, LPG is in the better half of the industry, outperforming 66.50% of the companies in the same industry.
The Debt to FCF ratio of LPG is 1.77, which is an excellent value as it means it would take LPG, only 1.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LPG (1.77) is better than 78.64% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that LPG is not too dependend on debt financing.
A Current Ratio of 4.60 indicates that LPG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.60, LPG belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
LPG has a Quick Ratio of 4.58. 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 4.58, LPG belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.

Assessing Growth Metrics 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 6 for growth:

The Earnings Per Share has grown by an impressive 56.88% over the past year.
The Earnings Per Share has been growing by 63.39% on average over the past years. This is a very strong growth
Looking at the last year, LPG shows a very strong growth in Revenue. The Revenue has grown by 32.75%.
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.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.