Pangaea Logistics Solutions

Stock: PANL

Rating: Strong Buy

Author: Waleed M. Tariq

Overview

  • Pangaea is a dry bulk shipping firm.
  • In 2021, it ran 55 ships a day and moved 27 million tons.
  • Their vessels are chartered for our contract business.

Bullish

  • The stock has surged due to the shipping industry’s growth and the company’s record year.
  • All regions raise rates, keeping the market strong.
  • I’m bullish on the stock since it’s undervalued, has growth potential, and a 6% yield.

Bearish

  • Bear markets can weigh hard on small firm shares, and the volatility might scare off cautious investors.

Financial forecasts vs. market sentiment

  • In Q1 2022, the firm above market projections with $0.35 EPS vs. $0.20. High MRQ profits boost current quarter EPS to $0.60 from $0.36.
Chart
Data by YCharts
  • Dry bulk fundamentals are thriving despite the macroeconomic environment’s recessionary fears and declining growth expectations.

Valuation

  • The company’s share price is 10% below its book value. PANL’s actions would cost $19 per industry median.

Conclusion

  • Low valuation, sustained dividends, and good growth prospects make the company a value, income, and growth investment.