Don't overlook NYSE:LPG—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Dec 5, 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.

A Closer Look at Valuation for NYSE:LPG

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:LPG was assigned a score of 8 for valuation:

LPG is valuated cheaply with a Price/Earnings ratio of 3.81.
LPG's Price/Earnings ratio is rather cheap when compared to the industry. LPG is cheaper than 93.14% 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 29.58.
With a Price/Forward Earnings ratio of 6.57, the valuation of LPG can be described as very cheap.
80.39% of the companies in the same industry are more expensive than LPG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.06. LPG is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPG indicates a somewhat cheap valuation: LPG is cheaper than 78.92% 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 92.16% of the companies listed in the same industry.
The excellent profitability rating of LPG may justify a higher PE ratio.

Profitability Assessment of 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 has a Return On Assets of 12.89%. This is amongst the best in the industry. LPG outperforms 82.84% of its industry peers.
LPG has a Return On Equity of 22.05%. This is in the better half of the industry: LPG outperforms 75.49% of its industry peers.
LPG has a better Return On Invested Capital (12.02%) than 75.49% 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.
LPG has a Profit Margin of 47.87%. This is amongst the best in the industry. LPG outperforms 89.71% of its industry peers.
In the last couple of years the Profit Margin of LPG has grown nicely.
Looking at the Operating Margin, with a value of 53.33%, LPG belongs to the top of the industry, outperforming 90.20% 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 95.59% of its industry peers.

Health Analysis for NYSE:LPG

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 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's Debt to FCF ratio of 1.96 is fine compared to the rest of the industry. LPG outperforms 76.96% 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.
The Current ratio of LPG (4.22) is better than 86.76% of its industry peers.
A Quick Ratio of 4.20 indicates that LPG has no problem at all paying its short term obligations.
The Quick ratio of LPG (4.20) is better than 87.25% of its industry peers.

Evaluating Growth: NYSE:LPG

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:LPG has received a 4 out of 10:

LPG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 63.39% yearly.
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.