Is Pangaea Logistics Solutions Ltd. overvalued or undervalued?

As of 14 February 2025, the valuation grade for Pangaea Logistics Solutions Ltd. moved from expensive to very attractive. The company appears to be undervalued, supported by a P/E ratio of 12, a price-to-book value of 0.73, and an EV to EBITDA ratio of 5.39. In comparison, peers such as Genco Shipping & Trading Ltd. have a significantly higher P/E ratio of 46.00, while Eagle Bulk Shipping, Inc. shows a P/E of 30.17, indicating that Pangaea is trading at a discount relative to its industry counterparts.
Despite a challenging one-year return of -12.96% compared to the S&P 500's 17.14%, Pangaea has shown resilience with a five-year return of 104.35%, outperforming the S&P 500's 96.61% over the same period. This suggests that while the recent performance has lagged, the long-term potential remains strong, reinforcing the view that the stock is undervalued.