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Is Pangaea Logistics Solutions (PANL) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Pangaea Logistics Solutions (PANL - Free Report) is a stock many investors are watching right now. PANL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

We should also highlight that PANL has a P/B ratio of 1.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.41. Over the past 12 months, PANL's P/B has been as high as 1.17 and as low as 0.65, with a median of 0.81.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PANL has a P/S ratio of 0.77. This compares to its industry's average P/S of 1.38.

Finally, investors should note that PANL has a P/CF ratio of 5.15. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.27. Within the past 12 months, PANL's P/CF has been as high as 5.98 and as low as 2.13, with a median of 3.78.

These are only a few of the key metrics included in Pangaea Logistics Solutions's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PANL looks like an impressive value stock at the moment.


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