Despite its impressive fundamentals, NYSE:LPG remains undervalued.

Last update: Dec 27, 2024

Discover DORIAN LPG LTD (NYSE:LPG)—an undervalued stock our stock screener has picked out. NYSE:LPG demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Unpacking NYSE:LPG's Valuation Rating

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:

With a Price/Earnings ratio of 3.90, the valuation of LPG can be described as very cheap.
92.65% of the companies in the same industry are more expensive than LPG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LPG to the average of the S&P500 Index (27.55), we can say LPG is valued rather cheaply.
A Price/Forward Earnings ratio of 6.74 indicates a rather cheap valuation of LPG.
Based on the Price/Forward Earnings ratio, LPG is valued a bit cheaper than 77.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, LPG is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, LPG is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LPG is valued cheaply inside the industry as 91.18% of the companies are valued more expensively.
LPG has an outstanding profitability rating, which may justify a higher PE ratio.

Exploring NYSE:LPG's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:LPG, the assigned 8 is a significant indicator of profitability:

LPG has a Return On Assets of 12.89%. This is amongst the best in the industry. LPG outperforms 84.80% of its industry peers.
With a decent Return On Equity value of 22.05%, LPG is doing good in the industry, outperforming 76.47% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.02%, LPG is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
The 3 year average ROIC (9.72%) for LPG is below the current ROIC(12.02%), indicating increased profibility in the last year.
LPG has a Profit Margin of 47.87%. This is amongst the best in the industry. LPG outperforms 90.20% of its industry peers.
In the last couple of years the Profit Margin of LPG has grown nicely.
The Operating Margin of LPG (53.33%) is better than 90.20% of its industry peers.
LPG's Operating Margin has improved in the last couple of years.
LPG's Gross Margin of 91.17% is amongst the best of the industry. LPG outperforms 95.59% of its industry peers.

Health Examination for NYSE:LPG

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, 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.
Looking at the Debt to FCF ratio, with a value of 1.96, LPG is in the better half of the industry, outperforming 76.96% of the companies in the same industry.
LPG has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 4.22 indicates that LPG has no problem at all paying its short term obligations.
LPG has a Current ratio of 4.22. This is amongst the best in the industry. LPG outperforms 87.25% of its industry peers.
LPG has a Quick Ratio of 4.20. This indicates that LPG is financially healthy and has no problem in meeting its short term obligations.
LPG has a Quick ratio of 4.20. This is amongst the best in the industry. LPG outperforms 87.75% of its industry peers.

Evaluating Growth: NYSE:LPG

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 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!

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

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

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.