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.

Click the button below to learn more about A+ Investor and subscribe today.

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, November 08, 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.

Danaos Corporation’s Value Grade

Value Grade:

Danaos Corporation is a holding company and an international owner of containerships, chartering its vessels to a range of liner companies. The Company's principal business is the acquisition and operation of vessels. The Company conducts its operations through the vessel owning companies, whose principal activity is the ownership and operation of containerships that are under the management of a related party of the company. The Company's manager is Danaos Shipping Company Limited (Danaos Shipping). The Company has a fleet of over 50 containerships aggregating approximately 329,590 twenty-foot equivalent units (TEUs). Its containership fleet includes approximately 53 containerships deployed on time charters and approximately two containerships deployed on bareboat charter. Gemini Shipholdings Corporation (Gemini), a company beneficially owned by the Company, owns approximately four additional containerships of over 24,000 TEU aggregate capacity.

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.

Danaos Corporation has a Value Score of 98, which is considered to be undervalued.

When you look at Danaos Corporation’s price-to-sales ratio at 1.31 compared to the industry median at 0.81, this company has a higher price relative to revenue compared to its peers. This could make Danaos Corporation’s stock less attractive for value investors.

Danaos Corporation’s price-earnings ratio is 2.57 compared to the industry median at 3.38. This means it has a lower share price relative to earnings compared to its peers. This could make Danaos Corporation more attractive for value investors.

Now, let’s assess Danaos Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 2.0, when compared to the industry median of 4.4, 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. Danaos Corporation’s shareholder yield is higher than its industry median ratio of 3.18%. 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. Danaos Corporation’s price-to-book ratio is higher than its industry median ratio of 0.47. This could make Danaos Corporation fairly attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Danaos Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Danaos Corporation’s price-to-free-cash-flow ratio is higher than its industry median ratio of 3.38. This could make Danaos Corporation fairly attractive because the higher P/FCF ratio indicates that Danaos Corporation 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.

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 77, which is considered to be undervalued.

Eagle Bulk Shipping Inc’s price-earnings ratio is 18.6 compared to the industry median at 3.4. 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 0.47.

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.

StealthGas Inc’s Value Grade

Value Grade:

StealthGas Inc. is a provider of international seaborne transportation services to liquefied petroleum gas (LPG) producers and users, as well as crude oil and product carriers to oil producers, refineries and commodities traders. The Company owns a fleet of LPG carriers. Its LPG carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene and vinyl chloride monomer, which are all byproducts of the production of crude oil and natural gas. The medium range product carriers in its fleet are capable of carrying refined petroleum products, such as gasoline, diesel, fuel oil and jet fuel, as well as edible oils and chemicals, while its Aframax tanker is used for carrying crude oil. Its fleet consists of approximately 50 LPG carriers, including two chartered-in LPG carriers, two 2008-built product carriers, a 2009-built product carrier and a 2010-built Aframax crude oil tanker.

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.

StealthGas Inc has a Value Score of 93, which is considered to be undervalued.

StealthGas Inc’s price-earnings ratio is 4.9 compared to the industry median at 3.4. This means that it has a higher price relative to its earnings compared to its peers. This makes StealthGas Inc less attractive for value investors.

StealthGas Inc’s price-to-book ratio is higher than its peers. This could make StealthGas Inc less attractive for value investors when compared to the industry median at 0.47.

You can read more about StealthGas 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.

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 85, which is considered to be undervalued.

Matson Inc’s price-earnings ratio is 10.4 compared to the industry median at 3.4. 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 0.47.

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.

Performance Shipping Inc’s Value Grade

Value Grade:

Performance Shipping Inc is a Greece-based global provider of shipping transportation services. It owns containerships and focuses on providing sourcing opportunities for vessel purchases and sales, newbuilding acquisitions, chartering and financing arrangements. The Company’s vessels are employed primarily on charters with liner companies carrying containerized cargo along worldwide shipping routes. The Company owns and operates vessels such as Panamax container vessel and Aframax tanker vessel. The Company’s fleet is managed by Unitized Ocean Transport Limited, a wholly owned subsidiary. The Company's customers include national, regional and international companies.

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.

Performance Shipping Inc has a Value Score of 100, which is considered to be undervalued.

Performance Shipping Inc’s price-earnings ratio is 0.8 compared to the industry median at 3.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Performance Shipping Inc more attractive for value investors.

Performance Shipping Inc’s price-to-book ratio is higher than its peers. This could make Performance Shipping Inc less attractive for value investors when compared to the industry median at 0.47.

You can read more about Performance 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.

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.

• Danaos Corporation stock has a Value Grade of A.
• Eagle Bulk Shipping Inc stock has a Value Grade of B.
• StealthGas Inc stock has a Value Grade of A.
• Matson Inc stock has a Value Grade of A.
• Performance Shipping Inc 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 Wednesday, November 08
• 4 Undervalued Freight & Logistics - Marine Stocks for Tuesday, November 07
• Why StealthGas Inc’s (GASS) Stock Is Down 4.07%
• 4 Undervalued Freight & Logistics - Marine Stocks for Monday, November 06

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.