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Dorian LPG (LPG)
NYSE:LPG
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Dorian LPG
(NYSE:LPG)
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Rating:72Outperform
Price Target:
$35.00
â–²(12.14% Upside)
Dorian LPG's overall stock score reflects strong technical momentum and a positive earnings call, highlighting robust market conditions and strategic advancements. Financial performance is solid, but declining revenue and cash flow growth are concerns. The stock's valuation is reasonable, supported by a high dividend yield.
Dorian LPG (LPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.33B
Dividend Yield10.05%
Average Volume (3M)516.08K
Price to Earnings (P/E)27.2
Beta (1Y)1.14
Revenue Growth-42.64%
EPS Growth-84.82%
CountryUS
Employees577
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.27
Shares Outstanding42,647,720
10 Day Avg. Volume458,259
30 Day Avg. Volume516,078
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)0.90
Price to Sales (P/S)2.66
P/FCF Ratio6.11
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue4.48
Enterprise Value/Gross Profit12.14
Enterprise Value/Ebitda9.58
Forecast
1Y Price Target
$41.50Price Target Upside32.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Dorian LPG Business Overview & Revenue Model
Company DescriptionDorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas (LPG) through its LPG tankers worldwide. The company owns and operates very large gas carriers (VLGCs). As of May 27, 2022, its fleet consisted of twenty-two VLGCs. The company was incorporated in 2013 and is headquartered in Stamford, Connecticut.
How the Company Makes MoneyDorian LPG generates revenue primarily through the transportation of LPG via its fleet of vessels. The company operates under two main revenue models: time charters and spot market contracts. In time charters, Dorian leases its vessels to customers for a fixed period, providing stable and predictable income. In spot market contracts, the company earns revenue based on current market rates for LPG transportation, which can fluctuate based on supply and demand dynamics. Additionally, Dorian LPG benefits from operational efficiencies and cost management practices that maximize profitability. The company also engages in strategic partnerships and long-term contracts with major energy producers and traders, which contribute to its revenue stability and growth potential.
Dorian LPG Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial and operational performance with significant capital returns and strategic advancements in fleet capabilities. However, challenges such as dry docking impacts and geopolitical volatility were noted.Q1-2026 Updates
Positive Updates
Dividend Payment and Capital Return
Dorian LPG announced a dividend of $0.60 per share, totaling $25.6 million, marking the 16th dividend payment and bringing total dividends to over $665 million. Over $900 million in total capital has been returned to shareholders.
Strong Freight Rates and Market Resilience
Freight rates strengthened in the second quarter, supported by healthy arbitrage economics and geopolitical tensions. Forward bookings for the quarter ending September 30, 2025, reflect a strong increase in rates since late May into June, with a TCE in excess of $67,000 per day.
Operational Milestones and Ammonia Conversion
Dorian LPG completed 10 of their 12 planned dry dockings for 2025 and is converting VLGCs to facilitate the carriage of ammonia, enhancing fleet commercial optionality.
Solid Financial Position
Reported adjusted EBITDA for the quarter was $38.6 million. Cash flow remained healthy with $278 million of free cash reported as of June 30, 2025.
Environmental and Operational Efficiency
The fleet's Annual Efficiency Ratio (AER) was 8.5% better than the IMO 2025 target, with continuous improvements expected.
Negative Updates
Dry Docking and Revenue Impact
Heavy dry dock schedule during the quarter resulted in 195 days not available for revenue generation, impacting overall earnings.
Geopolitical and Tariff-Related Volatility
Geopolitical factors, including near-global tariffs and Middle East hostilities, introduced volatility and inefficiencies in trade flows.
Increased G&A Expenses
Total G&A for the quarter was affected by bonuses booked during the quarter, amounting to $8.3 million or $0.19 per share.
Company Guidance
During the Dorian LPG First Quarter 2026 Earnings Conference Call, the company provided guidance on various financial and operational metrics. The call highlighted a dividend of $0.60 per share, totaling $25.6 million, reflecting a commitment to shareholder returns. This dividend marks the 16th payment, with over $665 million distributed and more than $900 million returned to shareholders in total. The Time Charter Equivalent (TCE) per available day was reported at $39,726, while spot rates in the Helios Pool were $37,700, demonstrating robust market conditions. The forward bookings for the quarter ending September 30, 2025, indicate a TCE exceeding $67,000 per day. Operating expenses for the quarter were $10,108 per day, with noncapitalized drydocking expenses at $2.6 million. Adjusted EBITDA was reported at $38.6 million, which would have been $49.5 million if adjusted further for bonuses and drydocking expenses. Additionally, the company maintains a comfortable financial position with $278 million in free cash and a debt-to-total book capitalization of 34.4%. Operationally, the company completed 10 of its 12 planned dry dockings for 2025 and is advancing efforts to convert some vessels to carry ammonia, enhancing fleet versatility.Dorian LPG Financial Statement Overview
Summary
Dorian LPG shows strong profitability with healthy margins and moderate leverage. However, the decline in revenue and free cash flow growth poses potential risks to long-term financial health.Income Statement
Dorian LPG's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 8.53%, which is concerning. However, the company maintains a healthy gross profit margin of 36.91% and a net profit margin of 15.15%. The EBIT and EBITDA margins are also strong at 24.87% and 46.77% respectively, indicating efficient cost management. Despite the revenue decline, profitability remains solid.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.67, indicating moderate leverage. The return on equity (ROE) is relatively low at 4.62%, suggesting limited returns on shareholder investments. However, the equity ratio is healthy, showing that 59.16% of the company's assets are financed by equity, which provides a cushion against financial instability.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 27.40% in the TTM period, which is a potential concern. The operating cash flow to net income ratio is 1.19, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.84, showing that a significant portion of net income is converted into free cash flow, despite the recent decline.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 323.20M | 353.34M | 560.72M | 389.75M | 274.22M | 315.94M |
| Gross Profit | 119.29M | 152.69M | 365.24M | 228.05M | 112.99M | 147.71M |
| EBITDA | 151.18M | 192.98M | 397.50M | 261.76M | 151.57M | 197.84M |
| Net Income | 48.96M | 90.17M | 307.45M | 172.44M | 71.94M | 92.56M |
Balance Sheet | ||||||
| Total Assets | 1.75B | 1.78B | 1.84B | 1.61B | 1.58B | 1.67B |
| Cash, Cash Equivalents and Short-Term Investments | 277.92M | 316.88M | 294.04M | 236.76M | 79.33M | 63.31M |
| Total Debt | 690.38M | 712.98M | 797.34M | 670.84M | 609.14M | 661.84M |
| Total Liabilities | 714.28M | 732.55M | 814.12M | 687.21M | 634.79M | 694.91M |
| Stockholders Equity | 1.03B | 1.05B | 1.02B | 920.15M | 946.83M | 977.05M |
Cash Flow | ||||||
| Free Cash Flow | 111.85M | 154.06M | 355.59M | 95.51M | 161.09M | 149.01M |
| Operating Cash Flow | 132.60M | 173.01M | 388.45M | 118.70M | 170.60M | 169.04M |
| Investing Cash Flow | -9.17M | -7.36M | -34.80M | 68.77M | 1.02M | -33.14M |
| Financing Cash Flow | -199.12M | -131.29M | -219.72M | -35.18M | -174.48M | -114.65M |
Dorian LPG Technical Analysis
Neutral
31.21
Price Trends
30.52
Positive
27.04
Positive
24.24
Positive
Market Momentum
0.35
Positive
48.93
Neutral
20.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPG, the sentiment is Neutral. The current price of 31.21 is below the 20-day moving average (MA) of 31.62, above the 50-day MA of 30.52, and above the 200-day MA of 24.24, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 20.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LPG.
Dorian LPG Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.35B | 13.83 | 14.59% | 11.83% | -2.98% | -17.51% | |
76 Outperform | $1.81B | 6.50 | 22.98% | 3.82% | -21.71% | -37.58% | |
76 Outperform | $1.11B | 12.71 | 7.10% | 1.25% | 1.19% | 12.56% | |
75 Outperform | $1.98B | 10.41 | 17.48% | 6.34% | -8.89% | 21.28% | |
72 Outperform | $1.33B | 27.15 | 4.54% | 10.05% | -42.64% | -84.82% | |
45 Neutral | $124.59M | -8.11 | 21.05% | 0.63% | -1.06% | -340.61% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
LPG
Dorian LPG
30.12
-0.87
-2.81%
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52.37
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-5.96%
NVGS
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15.70
-0.16
-1.01%
FLNG
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25.21
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11.65%
Dorian LPG Corporate Events
DividendsFinancial Disclosures
Dorian LPG Announces Irregular Cash Dividend Payout
Neutral
Aug 1, 2025
On August 1, 2025, Dorian LPG announced an irregular cash dividend of $0.60 per share, totaling approximately $25.6 million, to be paid on August 27, 2025. The company also reported its financial results for the first quarter of fiscal year 2026, ending June 30, 2025, with revenues of $84.2 million and a net income of $10.1 million. The results were impacted by a heavy drydocking schedule and market volatility, leading to a decrease in adjusted net income compared to the previous year.
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.