Yahoo Finance Is There Now An Opportunity In Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL)?
Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQCM. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine Pangaea Logistics Solutions’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Pangaea Logistics Solutions
Is Pangaea Logistics Solutions Still Cheap?
According to our valuation model, Pangaea Logistics Solutions seems to be fairly priced at around 9.90% above our intrinsic value, which means if you buy Pangaea Logistics Solutions today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $7.03, there’s only an insignificant downside when the price falls to its real value. What's more, Pangaea Logistics Solutions’s share price may be more stable over time (relative to the market), as indicated by its low beta.
Can we expect growth from Pangaea Logistics Solutions?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 21% over the next year, the near-term future seems bright for Pangaea Logistics Solutions. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? It seems like the market has already priced in PANL’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on PANL, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you'd like to know more about Pangaea Logistics Solutions as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Pangaea Logistics Solutions has 2 warning signs and it would be unwise to ignore them.
If you are no longer interested in Pangaea Logistics Solutions, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
