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StealthGas Inc (GASS)
:GASS
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StealthGas
(NASDAQ:GASS)
Rating:75Outperform
Price Target:
$7.50
▲(16.82%Upside)
Positive Factors
Debt Management
GASS is expected to end the current quarter with more cash than debt, which will be used to reduce debt and repurchase shares.
Earnings
GASS reported 1Q25 revenue and EPS above forecasts and repurchased shares earlier than expected.
Negative Factors
Demand
LPG shipping rates decreased due to lower demand in Europe.
Market Conditions
The 1Q25 time charter equivalent (TCE) rate was down due to weaker spot market conditions for smaller LPG ships.
StealthGas (GASS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$237.40M
Dividend YieldN/A
Average Volume (3M)103.65K
Price to Earnings (P/E)3.4
Beta (1Y)0.42
Revenue Growth14.08%
EPS Growth28.84%
CountryUS
Employees602
SectorIndustrials
Sector Strength88
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.44
Shares Outstanding36,978,680
10 Day Avg. Volume111,685
30 Day Avg. Volume103,652
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)0.36
Price to Sales (P/S)0.00
P/FCF Ratio2.48
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit2.95
Enterprise Value/Ebitda0.62
Forecast
1Y Price Target
$10.00Price Target Upside55.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
StealthGas Business Overview & Revenue Model
Company DescriptionStealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users internationally. It also provides crude oil and natural gas. The company's carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene, and vinyl chloride monomer; and refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals. As of December 31, 2021, it had a fleet of 44 LPG carriers with a total capacity of 389,426 cubic meters; three medium range product carriers with a total capacity of 140,000 deadweight tons (dwt); and one Aframax crude oil tanker with a total capacity of 115,804 dwt. StealthGas Inc. was incorporated in 2004 and is based in Athens, Greece.
How the Company Makes MoneyStealthGas Inc. generates revenue through the leasing of its LPG carriers to third parties on short-term and long-term charters. The company earns money by charging charter rates to its clients, which vary based on the type of charter agreement, the duration, and the prevailing market conditions. In addition to spot market charters, which are typically short-term and dependent on fluctuating market demand, StealthGas secures long-term contracts that provide more stable and predictable cash flows. The company's earnings are significantly influenced by global demand for LPG, shipping capacity, fuel prices, and geopolitical factors that impact trade routes and shipping regulations.
StealthGas Earnings Call Summary
Earnings Call Date:May 28, 2025
(Q1-2025)
| % Change Since: 17.15%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call highlights StealthGas Inc.'s strong financial health with significant debt reduction and strategic fleet expansion. Despite challenges such as increased operating expenses and geopolitical tensions affecting the spot market and trade routes, the company remains resilient with strong future revenue projections and a solid market positioning.Q1-2025 Updates
Positive Updates
Resilient Revenue and Profitability
StealthGas Inc. generated $42 million in revenues for Q1 2025, slightly up from $41.6 million in Q1 2024, demonstrating resilience in commercial operations despite a volatile market. Adjusted net income was $16.1 million, on par with Q4 2024, maintaining high profitability.
Significant Debt Reduction
The company reduced debt by $54 million in 2025, bringing the debt level to $30 million. With over $77 million in cash, the company is effectively net debt-free, allowing for faster cash accumulation.
Fleet Expansion and Strategic Moves
StealthGas Inc. sold one vessel and agreed to acquire two more, resulting in a net fleet increase to 29 vessels. This reflects strategic fleet diversification and renewal efforts.
Market Positioning and Growth Potential
The company secured over $165 million in future revenues and maintained 70% fleet day coverage for 2025. The LPG market is expected to grow with new capacity additions in the US and Middle East, potentially boosting demand.
Share Repurchase Program
StealthGas Inc. spent $1.8 million on share repurchases, utilizing liquidity effectively as the stock trades at a steep discount to net asset value.
Negative Updates
Increased Operating Expenses
Operating expenses rose by 17% due to higher crew costs and maintenance fees, impacting the net income negatively despite overall profitability.
Weakness in Spot Market
The spot market weakness led to a 4.6% decrease in TCE revenues, highlighting challenges with certain vessels operating spot generating increased costs without sufficient revenue compensation.
Trade Tensions and Tariffs Impact
Geopolitical tensions led to initial trade disruptions in China, with tariffs impacting US LPG exports. Though a temporary truce was reached, the situation remains volatile.
Company Guidance
During the first quarter of 2025, StealthGas Inc. demonstrated resilience with revenues of $42 million, showing a slight increase from $41.6 million in the same period last year but a slight decline from $43.5 million in the previous quarter. Adjusted net income amounted to $16.1 million, mirroring the previous quarter but showing a decrease compared to the first quarter of 2024, primarily due to higher expenses. Earnings per share on an adjusted basis were reported at $0.44. The company has been strategic in reducing its debt by $54 million this year, leaving the current debt at approximately $30 million, and is now effectively net debt-free. The fleet consists of 31 ships, with only one vessel still having a mortgage. In terms of future revenue, StealthGas has secured over $165 million, covering 70% of fleet days for 2025. Additionally, the company has engaged in a share repurchase program, spending $1.8 million since the last call to capitalize on the steep discount in stock trading. The LPG market remains dynamic, with the US maintaining its position as the largest exporter. The company anticipates further market shifts due to geopolitical tensions and trade route diversifications.StealthGas Financial Statement Overview
Summary
StealthGas demonstrates strong financial health with impressive revenue and profit growth, improved operational efficiency, and a solid balance sheet with reduced leverage. However, high capital expenditures have led to negative free cash flow, presenting potential liquidity constraints.Income Statement
StealthGas demonstrated strong revenue growth of 16.53% from 2023 to 2024, with an impressive increase in gross profit margin from 35.4% to 60.1%. Net profit margin improved significantly to 41.77% in 2024 from 36.18% in 2023. The EBIT margin soared to 35.78% in 2024, showcasing enhanced operational efficiency. EBITDA margin also reflected strong performance at 51.34%. Overall, the company shows robust growth and profitability.85
Very Positive
Balance Sheet
The company improved its equity base with a rising stockholders' equity reaching $626.5 million. The debt-to-equity ratio decreased significantly from 0.22 in 2023 to 0.14 in 2024, indicating reduced leverage risk. The return on equity (ROE) improved to 11.15% in 2024 from 9.45% in 2023. The equity ratio increased to 85.55%, suggesting a strong equity cushion. However, total assets decreased slightly, reflecting potential asset management challenges.75
Positive
Cash Flow
Operating cash flow increased to $103.5 million, indicating robust cash generation capabilities. However, free cash flow turned negative in 2024 due to high capital expenditures, reflecting aggressive reinvestment strategies. The operating cash flow to net income ratio remained strong, reflecting efficient cash conversion. The free cash flow to net income ratio, however, was negative, highlighting potential liquidity constraints.68
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 167.26M | 143.53M | 152.76M | 150.20M | 145.00M |
| Gross Profit | 74.38M | 50.85M | 72.68M | 61.20M | 73.69M |
| EBITDA | 85.89M | 73.28M | 63.39M | 6.44M | 61.33M |
| Net Income | 69.86M | 51.94M | 34.25M | -35.12M | 11.98M |
Balance Sheet | |||||
| Total Assets | 732.24M | 697.21M | 821.53M | 798.67M | 944.01M |
| Cash, Cash Equivalents and Short-Term Investments | 80.65M | 77.20M | 82.27M | 31.30M | 38.24M |
| Total Debt | 84.89M | 123.64M | 277.11M | 293.90M | 351.80M |
| Total Liabilities | 105.71M | 147.55M | 303.61M | 323.90M | 379.41M |
| Stockholders Equity | 626.53M | 549.66M | 517.93M | 474.77M | 564.60M |
Cash Flow | |||||
| Free Cash Flow | -2.67M | 77.36M | 42.33M | 15.81M | 3.99M |
| Operating Cash Flow | 103.50M | 77.44M | 66.56M | 41.04M | 52.11M |
| Investing Cash Flow | -64.48M | 111.34M | -17.26M | -19.25M | -58.07M |
| Financing Cash Flow | -38.25M | -174.18M | -25.85M | -29.13M | -23.12M |
StealthGas Technical Analysis
Positive
6.42
Price Trends
5.87
Positive
5.72
Positive
5.84
Positive
Market Momentum
0.19
Positive
53.83
Neutral
8.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GASS, the sentiment is Positive. The current price of 6.42 is below the 20-day moving average (MA) of 6.49, above the 50-day MA of 5.87, and above the 200-day MA of 5.84, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 8.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GASS.
StealthGas Risk Analysis
StealthGas disclosed 59 risk factors in its most recent earnings report. StealthGas reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
StealthGas Peers Comparison
Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $319.29M | 2.45 | 39.30% | 5.81% | 14.62% | 21.99% | |
75 Outperform | $237.40M | 3.44 | 10.95% | ― | 14.08% | 28.84% | |
71 Outperform | ¥255.26B | 12.93 | 8.49% | 3.09% | 6.31% | 12.94% | |
68 Neutral | $137.12M | 5.22 | 10.11% | 3.17% | 17.53% | 58.04% | |
63 Neutral | $314.98M | 14.06 | 4.05% | 4.25% | 13.10% | -54.75% | |
58 Neutral | $170.18M | 21.37 | 2.79% | 2.74% | -8.74% | -70.04% | |
45 Neutral | $27.33M | ― | -11.54% | ― | 10.25% | -269.52% |
* Industrials Sector Average
Performance Comparison
GASS
StealthGas
6.42
-1.17
-15.42%
DSX
Diana Shipping
1.47
-1.33
-47.50%
ESEA
Euroseas
45.57
14.30
45.73%
SHIP
Seanergy Maritime
6.27
-3.90
-38.35%
PANL
Pangaea Logistics Solutions
4.80
-2.63
-35.40%
EDRY
EuroDry
9.67
-15.02
-60.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.