Pangaea Logistics Solutions: Best-In-Class Maritime Shipper Weathering Industry Downturn

Summary

• Pangaea Logistics Solutions is a dry bulk maritime shipping company offering transportation of bulk cargo in the Arctic and Caribbean regions.
• The company has a flexible fleet structure and long-term agreements with many clients, allowing it to navigate market downturns and charge higher-than-market rates for specialized projects.
• Pangaea's performance has deteriorated recently due to an industry slowdown, but its continued profitability, strong balance sheet, and growth-oriented investments position it well for recovery.
• With a P/E of around 7, P/S of less than 0.6, and an earnings recovery on the horizon, PANL is too cheap to pass up.
• Pangaea trades at a discount to tangible book value in spite of consistent profitability, further cementing its status as dramatically undervalued.

Jean Landry/iStock via Getty Images

The supercontinent of Pangaea existed 200-300 million years ago, incorporating almost all of the landmasses on Earth surrounded by a global ocean called Panthalassa. On today's Earth consisting of the fragmented remains of Pangaea surrounded by formidable

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PANL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.