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Dorian LPG (LPG)
NYSE:LPG
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Dorian LPG
(NYSE:LPG)
80Outperform
Dorian LPG (LPG) vs. S&P 500 (SPY)
Market Cap
$936.56M
Dividend YieldN/A
Average Volume (3M)819.90K
Price to Earnings (P/E)5.6
Beta (1Y)1.05
Revenue Growth-24.25%
EPS Growth-48.08%
CountryUS
Employees577
SectorEnergy
Sector Strength49
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.43
Shares Outstanding42,804,478
10 Day Avg. Volume742,280
30 Day Avg. Volume819,900
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.56
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.99
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.00Price Target Upside31.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 by providing shipping services for liquefied petroleum gas through its fleet of Very Large Gas Carriers (VLGCs). The company earns money primarily from time charters and spot market voyages. In time charters, Dorian LPG leases its vessels to customers for a fixed period, providing steady and predictable income. In the spot market, the company offers its vessels for single voyages, which can offer higher earnings potential based on market conditions but also carry more risk. Additionally, Dorian LPG may engage in partnerships or joint ventures with other shipping or energy companies to optimize fleet utilization and expand service offerings. Key factors influencing its earnings include global LPG demand, shipping rates, fuel costs, and regulatory changes impacting maritime operations.
Dorian LPG Financial Statement Overview
Summary
Dorian LPG demonstrates strong financial health with high profitability, effective cash conversion, and a solid equity position. Although revenue decline in the latest period warrants attention, the company's low leverage and strong cash flow provide a stable foundation for future growth, positioning it well within the fossil fuels industry.Income Statement
The company shows strong profitability with a high gross profit margin of 52.7% and a net profit margin of 38.5% for TTM (Trailing-Twelve-Months). Revenue growth was robust between 2022 and 2023, with a 42% increase, though it slightly decreased in the subsequent year. EBIT and EBITDA margins are also strong at 43.1% and 58.0%, respectively, indicating efficient operations. However, the declining revenue trend from 2023 to 2024 TTM could be a concern if it continues.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position with an equity ratio of 58.7% for TTM. The debt-to-equity ratio is low at 0.21, indicating limited leverage and prudent financial management. Return on equity stands at a robust 15.1%. While the company has reduced its debt significantly, maintaining a strong cash position, the declining asset base needs monitoring.78
Positive
Cash Flow
The cash flow statement shows strong operational cash flow with an impressive operating cash flow to net income ratio of 1.7 for TTM, highlighting effective cash conversion. Free cash flow growth is substantial, with free cash flow almost tripling from 2022 to 2024. However, negative investing cash flow indicates high capital expenditures, which may need to be scrutinized for returns.82
Very Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 560.72M | 389.75M | 274.22M | 315.94M | 333.43M | Gross Profit |
| 365.24M | 228.05M | 112.99M | 147.71M | 182.58M | EBIT |
| 328.83M | 198.36M | 92.40M | 116.10M | 161.07M | EBITDA |
| 397.50M | 261.76M | 151.57M | 197.84M | 216.09M | Net Income Common Stockholders |
| 307.45M | 172.44M | 71.94M | 92.56M | 111.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 294.04M | 236.76M | 79.33M | 63.31M | 30.84M | Total Assets |
| 1.84B | 1.61B | 1.58B | 1.67B | 1.63B | Total Debt |
| 797.34M | 670.84M | 609.14M | 661.84M | 696.09M | Net Debt |
| 514.83M | 434.08M | 529.81M | 613.45M | 665.25M | Total Liabilities |
| 814.12M | 687.21M | 634.79M | 694.91M | 712.69M | Stockholders Equity |
| 1.02B | 920.15M | 946.83M | 977.05M | 912.68M |
| Cash Flow | Free Cash Flow | |||
| 355.59M | 95.51M | 161.09M | 149.01M | 4.86M | Operating Cash Flow |
| 388.45M | 118.70M | 170.60M | 169.04M | 8.88M | Investing Cash Flow |
| -34.80M | 68.77M | 1.02M | -33.14M | -4.52M | Financing Cash Flow |
| -219.72M | -35.18M | -174.48M | -114.65M | -67.01M |
Dorian LPG Technical Analysis
Positive
22.02
Price Trends
21.13
Positive
22.29
Negative
26.56
Negative
Market Momentum
0.26
Negative
56.16
Neutral
50.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPG, the sentiment is Positive. The current price of 22.02 is above the 20-day moving average (MA) of 21.13, above the 50-day MA of 21.13, and below the 200-day MA of 26.56, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 50.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LPG.
Dorian LPG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.80B | 10.00 | 17.04% | 8.57% | -5.32% | 5.51% | |
81 Outperform | $1.59B | 3.97 | 18.57% | 2.21% | -21.27% | -34.25% | |
80 Outperform | $936.56M | 5.58 | 15.72% | ― | -24.25% | -48.08% | |
77 Outperform | $899.01M | 10.87 | 7.14% | 1.49% | 2.89% | 8.17% | |
72 Outperform | $1.27B | 10.96 | 14.23% | 12.47% | -3.95% | -2.25% | |
56 Neutral | $7.06B | 3.68 | -4.87% | 5.83% | 0.28% | -51.94% | |
41 Neutral | $117.17M | 33.55 | -6.93% | 0.65% | -2.03% | -348.43% |
* Energy Sector Average
Performance Comparison
LPG
Dorian LPG
22.02
-17.51
-44.30%
DHT
DHT Holdings
11.08
-0.07
-0.63%
MMLP
Martin Midstream
3.08
0.16
5.48%
TNK
Teekay Tankers
45.30
-20.12
-30.76%
NVGS
Navigator Holdings
13.45
-2.83
-17.38%
FLNG
FLEX LNG
24.06
-1.49
-5.83%
Dorian LPG Earnings Call Summary
Earnings Call Date:Jan 31, 2025
(Q3-2025)
| % Change Since: -10.71%|
Next Earnings Date:May 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of the company's performance with positive highlights such as consistent dividends, fuel efficiency improvements, and a strong financial position. However, there are some concerns about cash flow, geopolitical challenges, and rising interest costs. The overall sentiment is cautiously optimistic with a focus on maintaining financial flexibility and market position.Q3-2025 Updates
Positive Updates
Consistent Dividend Policy
The company declared a dividend of $0.70 per share, consistent with its policy of aligning shareholder returns with market realities, despite a heavy dry docking schedule.
Fuel Savings and Efficiency Improvements
Achieving fuel savings higher than 10% from energy-saving devices and silicon paints. This results in payback periods of less than a year and continuous fuel and cost emissions savings.
Strong Financial Position
Reported $314.5 million in free cash with a debt-to-total book capitalization at 34.8% and net debt to total cap at 15%.
Positive Market Outlook
Expectations of production growth and terminal expansions at Targa and Nederland by the second half of 2025. Deliveries of only 11 ships this year support a healthy freight market.
Ammonia Capable Fleet Expansion
Upgrading fleet to be ammonia capable with one VLGC already on water and plans to retrofit two more ships this year.
Negative Updates
Cash Flow and Dividend Payout
Free cash declined from the previous quarter, with $42.6 million in irregular dividends paid and $2.8 million in vessel CapEx.
Market and Geopolitical Challenges
Volatile political environment and geopolitical uncertainties, including developments in Ukraine, Iran, and the Middle East, may influence the market.
Interest Cost Increase
Lowest cost hedges rolling off at the end of the quarter, resulting in a 30 basis point increase in debt cost starting fiscal Q1 2026.
Company Guidance
During the Dorian LPG Third Quarter 2025 Earnings Conference Call, management provided optimistic guidance despite a challenging market environment. The company declared a $0.70 per share dividend, reflecting confidence in their financial health with a reported $314.5 million in free cash and a debt-to-total book capitalization ratio of 34.8%. They highlighted a TCE revenue per available day of approximately $36,100, with expectations for the next quarter to exceed $37,000 per day. Operational efficiencies were emphasized, including over 10% fuel savings from energy-saving devices, and ongoing preparation for ammonia transport capabilities. The company is strategically positioned with a strong balance sheet, ready to navigate market uncertainties while focusing on capital allocation, fleet renewal opportunities, and maintaining a balance between shareholder returns and business needs.Dorian LPG Corporate Events
DividendsBusiness Operations and Strategy
Dorian LPG Announces Irregular Cash Dividend Declaration
Neutral
May 2, 2025
On May 2, 2025, Dorian LPG Ltd. announced that its Board of Directors declared an irregular cash dividend of $0.50 per share, totaling approximately $21.3 million, payable on May 30, 2025, to shareholders of record as of May 16, 2025. This decision reflects the company’s financial strategy and operational considerations, impacting stakeholders by providing a direct return on investment, while highlighting the company’s discretion in future dividend declarations based on various financial and operational factors.
Spark’s Take on LPG Stock
According to Spark, TipRanks’ AI Analyst, LPG is a Outperform.
Dorian LPG’s overall score reflects a strong financial foundation, attractive valuation, and a cautiously optimistic earnings outlook. While the company faces revenue decline and geopolitical risks, its low leverage and strategic initiatives in fuel efficiency and fleet capabilities provide resilience. Technical indicators suggest some short-term strength but potential long-term challenges.
To see Spark’s full report on LPG stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.