Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Marine Transportation industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Marine Transportation Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Marine Transportation Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Marine Transportation industry for Thursday, October 03, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Marine Transportation industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

COSCO SHIPPING Holdings Co., Ltd.’s Value Grade

Value Grade:

COSCO SHIPPING Holdings Co., Ltd., an investment holding company, engages in the container shipping, managing and operating container terminals, and other terminal related businesses in the United States, Europe, the Asia Pacific, Mainland China, and internationally. It operates through Container Shipping Business and Terminal Business segments. The company offers freight forwarding and transportation, vessel chartering, container transportation, marine, vessel management and manning, cargo and liner agency, logistics, document, shipping agency and other sea transport, container stack, cargo storage, and cargo transportation services. It is also involved in the design and manufacture of computer software, as well as provision of technology services and solutions; asset management business; and operation of terminals. The company was formerly known as China COSCO Holdings Company Limited and changed its name to COSCO SHIPPING Holdings Co., Ltd. in November 2016. COSCO SHIPPING Holdings Co., Ltd. was incorporated in 2005 and is based in Shanghai, the People’s Republic of China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

COSCO SHIPPING Holdings Co., Ltd. has a Value Score of 86, which is considered to be undervalued.

When you look at COSCO SHIPPING Holdings Co., Ltd.’s price-to-sales ratio at 0.74 compared to the industry median at 1.29, this company has a lower price relative to revenue compared to its peers. This could make COSCO SHIPPING Holdings Co., Ltd.’s stock more attractive for value investors.

COSCO SHIPPING Holdings Co., Ltd.’s price-earnings ratio is 41.40 compared to the industry median at 7.15. This means it has a higher share price relative to earnings compared to its peers. This could make COSCO SHIPPING Holdings Co., Ltd. less attractive for value investors.

Now, let’s assess COSCO SHIPPING Holdings Co., Ltd.’s EV/EBITDA ratio, also known as enterprise multiple. At 3.4, when compared to the industry median of 5.8, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. COSCO SHIPPING Holdings Co., Ltd.’s shareholder yield is higher than its industry median ratio of 2.95%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. COSCO SHIPPING Holdings Co., Ltd.’s price-to-book ratio is lower than its industry median ratio of 0.79. This could make COSCO SHIPPING Holdings Co., Ltd. more attractive to investors looking for a new addition to their portfolio.

C3is Inc.’s Value Grade

Value Grade:

C3is Inc. offers international seaborne transportation services. It provides its services to dry bulk charterers, including national and private industrial users, commodity producers and traders, oil producers, refineries, and commodities traders and producers. The company owns and operates a fleet of two drybulk carriers, which transport major bulks, such as iron ore, coal and grains, as well as minor bulks comprising bauxite, phosphate, and fertilizers, and one Aframax crude oil tanker that transports crude oil. C3is Inc. was founded in 2021 and is based in Athens, Greece.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

C3is Inc. has a Value Score of 94, which is considered to be undervalued.

C3is Inc.’s price-to-book ratio is higher than its peers. This could make C3is Inc. less attractive for value investors when compared to the industry median at 0.79.

You can read more about C3is Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Hapag-Lloyd Aktiengesellschaft’s Value Grade

Value Grade:

Hapag-Lloyd Aktiengesellschaft, together with its subsidiaries, operates as a liner shipping company worldwide. It operates through Liner Shipping; and Terminal & Infrastructure segments. The company’s vessel and container fleets are used for dry and special cargo, dangerous goods, and coffee, as well as reefer cargo. It also offers bilateral EDI, a directly connected electronic data interchange; application programming interface (API) developer portal to connect software systems and exchange data; operates portals comprising INTTRA, Infor Nexus, and CargoSmart that manage customer’s supply chain data and connect to their carriers through one interface, as well as WAVE BL service for the digital release of original bills of lading; and provides email and security information services. In addition, the company provides inland container transportation services through truck and train; and operates container terminals. As of December 31, 2023, its fleet comprised 266 container ships with a transport capacity of 2.0 million twenty-foot equivalent unit (TEU). The company was formerly known as Hapag-Lloyd Holding AG and changed its name to Hapag-Lloyd Aktiengesellschaft in August 2013. Hapag-Lloyd Aktiengesellschaft was founded in 1847 and is headquartered in Hamburg, Germany.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Hapag-Lloyd Aktiengesellschaft has a Value Score of 81, which is considered to be undervalued.

Hapag-Lloyd Aktiengesellschaft’s price-earnings ratio is 18.6 compared to the industry median at 7.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Hapag-Lloyd Aktiengesellschaft less attractive for value investors.

Hapag-Lloyd Aktiengesellschaft’s price-to-book ratio is lower than its peers. This could make Hapag-Lloyd Aktiengesellschaft fairly attractive for value investors when compared to the industry median at 0.79.

You can read more about Hapag-Lloyd Aktiengesellschaft’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Kawasaki Kisen Kaisha, Ltd.’s Value Grade

Value Grade:

Kawasaki Kisen Kaisha, Ltd. provides marine, land, and air transportation services in Japan, the United States, Europe, Asia, and internationally. It offers dry bulk carrier, car carrier, liquefied natural gas carrier, crude oil tanker, containerships, and liquefied petroleum gas transportation services. The company also engages in the offshore and energy development business. In addition, it operates container terminals; and offers warehousing and cargo consolidation services. Kawasaki Kisen Kaisha, Ltd. was founded in 1919 and is headquartered in Tokyo, Japan.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Kawasaki Kisen Kaisha, Ltd. has a Value Score of 96, which is considered to be undervalued.

Kawasaki Kisen Kaisha, Ltd.’s price-earnings ratio is 12.4 compared to the industry median at 7.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Kawasaki Kisen Kaisha, Ltd. less attractive for value investors.

You can read more about Kawasaki Kisen Kaisha, Ltd.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Kuehne + Nagel International AG’s Value Grade

Value Grade:

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Kuehne + Nagel International AG has a Value Score of 87, which is considered to be undervalued.

Kuehne + Nagel International AG’s price-earnings ratio is 5.0 compared to the industry median at 7.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Kuehne + Nagel International AG more attractive for value investors.

Kuehne + Nagel International AG’s price-to-book ratio is lower than its peers. This could make Kuehne + Nagel International AG more attractive for value investors when compared to the industry median at 0.79.

You can read more about Kuehne + Nagel International AG’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Navios Maritime Partners L.P.’s Value Grade

Value Grade:

Navios Maritime Partners L.P. owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. The company offers seaborne transportation services for a range of liquid and dry cargo commodities, including crude oil, refined petroleum, chemicals, iron ore, coal, grain, fertilizer, and containers, as well as charters its vessels under short, medium, and longer-term charters. Navios Maritime Partners L.P. was founded in 2007 and is based in Monaco.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Navios Maritime Partners L.P. has a Value Score of 88, which is considered to be undervalued.

Navios Maritime Partners L.P.’s price-earnings ratio is 4.9 compared to the industry median at 7.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Navios Maritime Partners L.P. more attractive for value investors.

Navios Maritime Partners L.P.’s price-to-book ratio is higher than its peers. This could make Navios Maritime Partners L.P. less attractive for value investors when compared to the industry median at 0.79.

You can read more about Navios Maritime Partners L.P.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

OceanPal Inc.’s Value Grade

Value Grade:

OceanPal Inc. provides ocean-going transportation services worldwide. The company owns and operates dry bulk carriers that transport major bulks, such as iron ore, coal, and grains, as well as minor bulks, including bauxite, phosphate, and fertilizers. As of December 31, 2023, its fleet consisted of five dry bulk carriers, which include three Panamaxes and two Capesize vessels with a cargo carrying capacity of approximately 572,599 deadweight tons. The company was incorporated in 2021 and is based in Athens, Greece.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

OceanPal Inc. has a Value Score of 82, which is considered to be undervalued.

OceanPal Inc.’s price-to-book ratio is higher than its peers. This could make OceanPal Inc. less attractive for value investors when compared to the industry median at 0.79.

You can read more about OceanPal Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Marine Transportation Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Marine Transportation stocks as well as other industrys.

Choosing Which of the 7 Best Marine Transportation Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• COSCO SHIPPING Holdings Co., Ltd. stock has a Value Grade of A.
• C3is Inc. stock has a Value Grade of A.
• Hapag-Lloyd Aktiengesellschaft stock has a Value Grade of A.
• Kawasaki Kisen Kaisha, Ltd. stock has a Value Grade of A.
• Kuehne + Nagel International AG stock has a Value Grade of A.
• Navios Maritime Partners L.P. stock has a Value Grade of A.
• OceanPal Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Marine Transportation industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Marine Transportation Stocks

Want to learn more about Marine Transportation stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Marine Transportation Stocks for Thursday, October 03
• 3 Undervalued Freight & Logistics - Marine Stocks for Monday, September 30
• Why ZIM Integrated Shipping Services Ltd’s (ZIM) Stock Is Up 5.86%
• 3 Undervalued Freight & Logistics - Marine Stocks for Friday, September 27

AAII Disclaimer

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