Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Freight & Logistics - Marine 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 Freight & Logistics - Marine 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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5 Undervalued Freight & Logistics - Marine Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Freight & Logistics - Marine industry for Tuesday, September 19, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Freight & Logistics - Marine 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.

Costamare Inc’s Value Grade

Value Grade:

Costamare Inc is a Monaco-based company that provides containerships and dry bulk vessels for charter. The Company is an international shipping industry that offers a fleet of 73 containerships, with a total capacity of approximately 537,000 TEU (including two vessels that have agreed to sell) and 45 dry bulk vessels with a total capacity of approximately 2,436,000 DWT. Its offers containerships of various sizes (including feeder, panamax and post-panamax containerships) serve short, medium, and long-haul routes on a variety of geographical trades. Its dry bulk vessels transport a broad range of bulks such as iron ore, coal, and grains as well as minor bulks such as bauxite, phosphate fertilizers and steel products. The Company serve its customer's needs worldwide and ensure the safety, reliability, and environmental responsibility of services.

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.

Costamare Inc has a Value Score of 98, which is considered to be undervalued.

When you look at Costamare Inc’s price-to-sales ratio at 1.00 compared to the industry median at 0.91, this company has a higher price relative to revenue compared to its peers. This could make Costamare Inc’s stock less attractive for value investors.

Costamare Inc’s price-earnings ratio is 2.34 compared to the industry median at 3.09. This means it has a lower share price relative to earnings compared to its peers. This could make Costamare Inc more attractive for value investors.

Now, let’s assess Costamare Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 5.2, when compared to the industry median of 4.4, the company may be considered overvalued 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. Costamare Inc’s shareholder yield is higher than its industry median ratio of 3.28%. 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. Costamare Inc’s price-to-book ratio is higher than its industry median ratio of 0.51. This could make Costamare Inc fairly attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Costamare Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Costamare Inc’s price-to-free-cash-flow ratio is higher than its industry median ratio of 3.27. This could make Costamare Inc less attractive because the higher P/FCF ratio indicates that Costamare Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Diana Shipping Inc’s Value Grade

Value Grade:

Diana Shipping Inc. is a Greece-based global provider of shipping transportation services. The Company specializes in the ownership and bareboat charter-in of dry bulk vessels. The Company's operating fleet consists of 40 dry bulk vessels, including 4 Newcastlemax, 11 Capesize, 5 Post-Panamax, 6 Kamsarmax, 8 Panamax, and 6 Ultramax. Its fleet combined carrying capacity is approximately 4.7 million deadweight tonnage (dwt) with a weighted average age of 10.16 years. The Company's fleet is managed by its wholly-owned subsidiary Diana Shipping Services S.A. and its established 50/50 joint venture with Wilhelmsen Ship Management named Diana Wilhelmsen Management Limited.

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.

Diana Shipping Inc has a Value Score of 86, which is considered to be undervalued.

Diana Shipping Inc’s price-earnings ratio is 3.7 compared to the industry median at 3.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Diana Shipping Inc less attractive for value investors.

Diana Shipping Inc’s price-to-book ratio is lower than its peers. This could make Diana Shipping Inc more attractive for value investors when compared to the industry median at 0.51.

You can read more about Diana Shipping 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.

Eagle Bulk Shipping Inc’s Value Grade

Value Grade:

Eagle Bulk Shipping Inc. is a fully integrated shipowner-operator. The Company provides transportation solutions to a diverse group of customers, including miners, producers, traders and end users. It focused on the versatile midsize dry bulk vessel segment and owns fleets of Supramax/Ultramax vessels in the world. The Company performs all management services in-house (strategic, commercial, operational, technical and administrative) and employs an active management approach to fleet trading with the objective of optimizing revenue performance and maximizing earnings on a risk-managed basis. The Company owns fleet totaled approximately 53 vessels or 3.20 million dwt, with an average age of 9.6 years. In addition, it has charters in five Ultramax vessels on a long-term charter-in basis, each with a remaining lease term of less than one year. The Company also charters-in third-party vessels on a short-to medium-term basis.

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.

Eagle Bulk Shipping Inc has a Value Score of 95, which is considered to be undervalued.

Eagle Bulk Shipping Inc’s price-earnings ratio is 5.3 compared to the industry median at 3.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Eagle Bulk Shipping Inc less attractive for value investors.

Eagle Bulk Shipping Inc’s price-to-book ratio is lower than its peers. This could make Eagle Bulk Shipping Inc more attractive for value investors when compared to the industry median at 0.51.

You can read more about Eagle Bulk Shipping 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.

Star Bulk Carriers Corp’s Value Grade

Value Grade:

Star Bulk Carriers Corp is a Greece-based global shipping company. It owns and operates a fleet of dry bulk carrier vessels. The Company’s vessels transport major bulks, which include iron ore, coal, and grain, and minor bulks, which include bauxite, fertilizers, and steel products. Its fleet consists of 128 vessels with carrying capacities between 52,247 and 209,537 dwt. The Company's fleet includes Newcastlemax, Capesize, Panamax, Post Panamax, Kamsarmax, Ultramax, and Supramax vessels with an aggregate capacity of more than 14 million deadweight tonnage (dwt) and an average age of approximately 10 years. Star Bulk Carriers Corp’s vessels transport minerals from the Americas and Australia to East Asia, particularly China, but also Japan, South Korea, Taiwan, Indonesia, and Malaysia; minerals, grain products, and steel between the Americas, Europe, Africa, Australia, and Indonesia and from these areas to China, Japan, South Korea, Taiwan, the Philippines, Malaysia, and others.

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.

Star Bulk Carriers Corp has a Value Score of 93, which is considered to be undervalued.

Star Bulk Carriers Corp’s price-earnings ratio is 2.5 compared to the industry median at 3.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Star Bulk Carriers Corp more attractive for value investors.

Star Bulk Carriers Corp’s price-to-book ratio is lower than its peers. This could make Star Bulk Carriers Corp more attractive for value investors when compared to the industry median at 0.51.

You can read more about Star Bulk Carriers Corp’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.

ZIM Integrated Shipping Services Ltd’s Value Grade

Value Grade:

Zim Integrated Shipping Services Ltd is an Israel-based company. It operates as fleet and a network of shipping lines offering cargo transportation services on all major global trade routes, it also offers multi-modal, cargo handling, tariff management, schedule information, and other related services supported by the company's local offices and representatives around the world.

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.

ZIM Integrated Shipping Services Ltd has a Value Score of 100, which is considered to be undervalued.

ZIM Integrated Shipping Services Ltd’s price-earnings ratio is 1.1 compared to the industry median at 3.1. This means that it has a lower price relative to its earnings compared to its peers. This makes ZIM Integrated Shipping Services Ltd more attractive for value investors.

ZIM Integrated Shipping Services Ltd’s price-to-book ratio is higher than its peers. This could make ZIM Integrated Shipping Services Ltd less attractive for value investors when compared to the industry median at 0.51.

You can read more about ZIM Integrated Shipping Services 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.

Other Freight & Logistics - Marine 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 Freight & Logistics - Marine stocks as well as other industrys.

Choosing Which of the 5 Best Freight & Logistics - Marine 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.

• Costamare Inc stock has a Value Grade of A.
• Diana Shipping Inc stock has a Value Grade of A.
• Eagle Bulk Shipping Inc stock has a Value Grade of A.
• Star Bulk Carriers Corp stock has a Value Grade of A.
• ZIM Integrated Shipping Services Ltd stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 undervalued stocks in the Freight & Logistics - Marine 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 Freight & Logistics - Marine Stocks

Want to learn more about Freight & Logistics - Marine 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.

• 5 Undervalued Freight & Logistics - Marine Stocks for Tuesday, September 19
• 5 Undervalued Freight & Logistics - Marine Stocks for Monday, September 18
• Why ZIM Integrated Shipping Services Ltd’s (ZIM) Stock Is Up 5.00%
• 3 Undervalued Freight & Logistics - Marine Stocks for Friday, September 15

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