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Is Diamond S Shipping Inc. (DSSI) a Great Value Stock Right Now?

Zacks Equity Research
·3 min read

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Diamond S Shipping Inc. (DSSI) is a stock many investors are watching right now. DSSI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that DSSI has a P/B ratio of 0.29. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DSSI's current P/B looks attractive when compared to its industry's average P/B of 0.86. DSSI's P/B has been as high as 0.59 and as low as 0.28, with a median of 0.39, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DSSI has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.67.

Finally, we should also recognize that DSSI has a P/CF ratio of 2.31. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DSSI's P/CF compares to its industry's average P/CF of 7.95. Within the past 12 months, DSSI's P/CF has been as high as 46.92 and as low as 2.27, with a median of 15.73.

Value investors will likely look at more than just these metrics, but the above data helps show that Diamond S Shipping Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, DSSI sticks out at as one of the market's strongest value stocks.


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