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 Wednesday, September 27, 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.

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 94, which is considered to be undervalued.

When you look at Eagle Bulk Shipping Inc’s price-to-sales ratio at 0.97 compared to the industry median at 0.93, this company has a higher price relative to revenue compared to its peers. This could make Eagle Bulk Shipping Inc’s stock less attractive for value investors.

Eagle Bulk Shipping Inc’s price-earnings ratio is 5.51 compared to the industry median at 3.15. This means it has a higher share price relative to earnings compared to its peers. This could make Eagle Bulk Shipping Inc less attractive for value investors.

Now, let’s assess Eagle Bulk Shipping Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 6.4, 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. Eagle Bulk Shipping Inc’s shareholder yield is higher than its industry median ratio of 3.14%. 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. Eagle Bulk Shipping Inc’s price-to-book ratio is higher than its industry median ratio of 0.50. This could make Eagle Bulk Shipping Inc less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Eagle Bulk Shipping Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Eagle Bulk Shipping Inc’s price-to-free-cash-flow ratio is higher than its industry median ratio of 3.36. This could make Eagle Bulk Shipping Inc less attractive because the higher P/FCF ratio indicates that Eagle Bulk Shipping 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.

Matson Inc’s Value Grade

Value Grade:

Matson, Inc. is a holding company that provides ocean transportation and logistics services. The Company's segments include Ocean Transportation and Logistics. The Ocean Transportation business is conducted through Matson Navigation Company, Inc. (MatNav), a wholly owned subsidiary of the Company. MatNav provides ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska and Guam, and to other island economies in Micronesia. MatNav also operates expedited services from China to Long Beach, California, and provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor, Alaska to Asia. The logistics business is conducted through Matson Logistics, Inc. (Matson Logistics), a wholly owned subsidiary of MatNav. Matson Logistics provides a variety of logistics services to its customers, such as transportation brokerage services, freight forwarding services, 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.

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

Matson Inc’s price-earnings ratio is 7.1 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 Matson Inc less attractive for value investors.

Matson Inc’s price-to-book ratio is lower than its peers. This could make Matson Inc more attractive for value investors when compared to the industry median at 0.50.

You can read more about Matson 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.

Pangaea Logistics Solutions Ltd’s Value Grade

Value Grade:

Pangaea Logistics Solutions, Ltd. is a provider of seaborne dry bulk logistics and transportation services. The Company offers services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The Company provides logistics and transportation services to clients utilizing an ocean-going fleet of motor vessels (m/v) in the Handymax, Supramax, Ultramax, and Panamax segments. The Company operates 26 vessels that were wholly owned or partially owned through joint ventures. The Company provides logistics services and commercially manages its fleet primarily from offices in Newport, Rhode Island, Copenhagen, Denmark and Singapore. The Company?s ocean logistics services provide cargo loading, cargo discharge, vessel chartering, voyage planning, and technical vessel management to vessel and cargo owners.

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.

Pangaea Logistics Solutions Ltd has a Value Score of 96, which is considered to be undervalued.

Pangaea Logistics Solutions Ltd’s price-earnings ratio is 6.4 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 Pangaea Logistics Solutions Ltd less attractive for value investors.

Pangaea Logistics Solutions Ltd’s price-to-book ratio is lower than its peers. This could make Pangaea Logistics Solutions Ltd more attractive for value investors when compared to the industry median at 0.50.

You can read more about Pangaea Logistics Solutions 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.

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 91, which is considered to be undervalued.

Star Bulk Carriers Corp’s price-earnings ratio is 2.6 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 0.50.

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.

United Maritime Corp’s Value Grade

Value Grade:

United Maritime Corp is a Greece-based international shipping company primarily engaged in worldwide seaborne transportation services. The Company’s fleet consists of four tanker vessels and one dry bulk vessel with an aggregate cargo carrying capacity of over 600,000 dwt tons. The Company's executive offices are located in Glyfada, 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.

United Maritime Corp has a Value Score of 61, which is considered to be undervalued.

United Maritime Corp’s price-earnings ratio is 0.5 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 United Maritime Corp more attractive for value investors.

United Maritime Corp’s price-to-book ratio is higher than its peers. This could make United Maritime Corp less attractive for value investors when compared to the industry median at 0.50.

You can read more about United Maritime 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.

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.

• Eagle Bulk Shipping Inc stock has a Value Grade of A.
• Matson Inc stock has a Value Grade of A.
• Pangaea Logistics Solutions Ltd stock has a Value Grade of A.
• Star Bulk Carriers Corp stock has a Value Grade of A.
• United Maritime Corp stock has a Value Grade of B.

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 Wednesday, September 27
• 3 Undervalued Freight & Logistics - Marine Stocks for Tuesday, September 26
• 5 Undervalued Freight & Logistics - Marine Stocks for Monday, September 25
• Why ZIM Integrated Shipping Services Ltd’s (ZIM) Stock Is Down 4.64%

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