Following Peter Lynch’s approach: Does DHT HOLDINGS INC (NYSE:DHT) fit the bill?

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if DHT HOLDINGS INC (NYSE:DHT) fits his winning formula.

Applying Peter Lynch’s stock selection rules to DHT HOLDINGS INC (NYSE:DHT)

• DHT showcases a robust Return on Equity (ROE) of 15.7%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• With a Debt/Equity ratio of 0.35, DHT demonstrates prudent financial management.
• Over the past 5 years, DHT has demonstrated 16.14 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• A PEG ratio of 0.58 suggests that DHT offers an attractive balance between growth and valuation.
• A Current Ratio of 2.41 suggests that DHT has sufficient assets to cover its short-term liabilities.

What else is there to say on the fundamentals of DHT?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall DHT gets a fundamental rating of 6 out of 10. We evaluated DHT against 210 industry peers in the Oil, Gas & Consumable Fuels industry. DHT has an excellent financial health rating, but there are some minor concerns on its profitability. DHT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make DHT suitable for value investing!

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

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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.