When you look at NYSE:LPG, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Nov 14, 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.

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:

With a Price/Earnings ratio of 4.46, 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 89.66% of the companies in the same industry.
When comparing the Price/Earnings ratio of LPG to the average of the S&P500 Index (29.10), we can say LPG is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.92, the valuation of LPG can be described as very cheap.
79.31% of the companies in the same industry are more expensive than LPG, based on the Price/Forward Earnings ratio.
LPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
Based on the Enterprise Value to EBITDA ratio, LPG is valued a bit cheaper than 73.89% of the companies in the same industry.
LPG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LPG is cheaper than 89.16% of the companies in the same industry.
The excellent profitability rating of LPG may justify a higher PE ratio.

Profitability Insights: NYSE:LPG

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:

LPG's Return On Assets of 12.89% is amongst the best of the industry. LPG outperforms 82.27% of its industry peers.
With a decent Return On Equity value of 22.05%, LPG is doing good in the industry, outperforming 74.88% of the companies in the same industry.
LPG's Return On Invested Capital of 12.02% is fine compared to the rest of the industry. LPG outperforms 73.40% of its industry peers.
The last Return On Invested Capital (12.02%) for LPG is above the 3 year average (9.72%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 47.87%, LPG belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
LPG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 53.33%, LPG belongs to the top of the industry, outperforming 90.15% of the companies in the same industry.
LPG's Operating Margin has improved in the last couple of years.
LPG has a Gross Margin of 91.17%. This is amongst the best in the industry. LPG outperforms 95.57% of its industry peers.

ChartMill's Evaluation of Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:LPG has earned a 7 out of 10:

LPG's Altman-Z score of 2.14 is fine compared to the rest of the industry. LPG outperforms 61.08% of its industry peers.
LPG has a debt to FCF ratio of 1.96. This is a very positive value and a sign of high solvency as it would only need 1.96 years to pay back of all of its debts.
LPG has a Debt to FCF ratio of 1.96. This is in the better half of the industry: LPG outperforms 75.86% of its industry peers.
LPG has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
LPG has a Current Ratio of 4.22. This indicates that LPG is financially healthy and has no problem in meeting its short term obligations.
LPG has a Current ratio of 4.22. This is amongst the best in the industry. LPG outperforms 85.71% of its industry peers.
A Quick Ratio of 4.20 indicates that LPG has no problem at all paying its short term obligations.
LPG has a better Quick ratio (4.20) than 86.21% of its industry peers.

Evaluating Growth: NYSE:LPG

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 4 reflects its growth potential:

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.
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.

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

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

Keep in mind

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.