Pangaea Logistics Solutions Ltd. (PANL) stock analysis

P/E below its 5-year median

Pangaea Logistics Solutions's P/E of 7.7 is below its own 5-year median of 8.6.

P/E below the industry

Pangaea Logistics Solutions's P/E of 7.7 is below the Water Transportation median of 12.7.

EV/EBITDA above its 5-year median

Pangaea Logistics Solutions's EV/EBITDA of 5.0 is above its 5-year median of 4.8.

P/B below the industry

Pangaea Logistics Solutions's price-to-book of 1.20 is below the Water Transportation median of 2.12.

Trading below fair value

The share price of $8.84 is below our fair value estimate of $12.21.

Margin of safety over 20%

The price is 27.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -44.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 363% over the last twelve months, against a 5-year average of 11.3% a year.

Growing faster than the industry

Revenue grew 27.8% over the last twelve months; the Water Transportation median is 1.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 16.3% over the last twelve months and averaged 16.0% over five years.

Return on capital over 10%

Return on invested capital was 12.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Pangaea Logistics Solutions's return on equity of 16.3% is above the Water Transportation median of 9.4%.

Earnings grew over 5 years

Net income grew 11.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.7% over the last twelve months, against a 5-year average of 6.9%.

Net margin below the industry

Pangaea Logistics Solutions's net margin of 9.7% is below the Water Transportation median of 20.1%.

High debt

Debt is 47.5% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 57.5% five years ago to 47.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 43.0% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.52 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.25; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Pangaea Logistics Solutions paid dividends worth 2.8% of the share price over the last twelve months.

Yield below Treasuries

The 2.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Pangaea Logistics Solutions yields 2.8%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 22.7% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.