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NYSE:LPG is probably undervalued for the fundamentals it is displaying.

By Mill Chart

Last update: Jan 23, 2024

Our stock screener has spotted DORIAN LPG LTD (NYSE:LPG) as an undervalued stock with solid fundamentals. NYSE:LPG shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Exploring NYSE:LPG's Valuation

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:

  • LPG is valuated cheaply with a Price/Earnings ratio of 6.51.
  • Based on the Price/Earnings ratio, LPG is valued a bit cheaper than 69.30% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.97. LPG is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 7.29, the valuation of LPG can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, LPG is valued a bit cheaper than 68.84% of the companies in the same industry.
  • LPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.90.
  • LPG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LPG is cheaper than 73.95% of the companies in the same industry.
  • LPG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • 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's Return On Assets of 14.32% is fine compared to the rest of the industry. LPG outperforms 73.02% of its industry peers.
  • LPG's Return On Equity of 27.67% is fine compared to the rest of the industry. LPG outperforms 66.51% of its industry peers.
  • With a decent Return On Invested Capital value of 13.07%, LPG is doing good in the industry, outperforming 63.72% of the companies in the same industry.
  • The 3 year average ROIC (6.77%) for LPG is below the current ROIC(13.07%), indicating increased profibility in the last year.
  • LPG has a better Profit Margin (51.80%) than 87.44% 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 56.31%, LPG belongs to the top of the industry, outperforming 87.44% of the companies in the same industry.
  • In the last couple of years the Operating Margin of LPG has grown nicely.
  • LPG's Gross Margin of 92.30% is amongst the best of the industry. LPG outperforms 95.81% of its industry peers.

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LPG has achieved a 7 out of 10:

  • LPG's Altman-Z score of 2.28 is fine compared to the rest of the industry. LPG outperforms 60.93% of its industry peers.
  • The Debt to FCF ratio of LPG is 2.66, which is a good value as it means it would take LPG, 2.66 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of LPG (2.66) is better than 65.12% of its industry peers.
  • LPG has a Current Ratio of 2.63. This indicates that LPG is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Current ratio value of 2.63, LPG is doing good in the industry, outperforming 79.07% of the companies in the same industry.
  • A Quick Ratio of 2.61 indicates that LPG has no problem at all paying its short term obligations.
  • LPG has a Quick ratio of 2.61. This is amongst the best in the industry. LPG outperforms 80.47% of its industry peers.

Unpacking NYSE:LPG's Growth Rating

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 5 out of 10:

  • LPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 222.56%, which is quite impressive.
  • LPG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.53% yearly.
  • Looking at the last year, LPG shows a very strong growth in Revenue. The Revenue has grown by 63.85%.
  • LPG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.59% yearly.

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 article should in no way be interpreted as advice in any way. 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.

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DORIAN LPG LTD

NYSE:LPG (5/24/2024, 7:04:00 PM)

After market: 48.07 0 (0%)

48.07

+2.06 (+4.48%)

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