Dorian LPG Ltd. (LPG) stock analysis

P/E below its 5-year median

Dorian LPG's P/E of 4.2 is below its own 5-year median of 6.7.

P/E below the industry

Dorian LPG's P/E of 4.2 is below the Water Transportation median of 12.7.

EV/EBITDA below its 5-year median

Dorian LPG's EV/EBITDA of 3.4 is below its 5-year median of 6.2.

P/B below the industry

Dorian LPG's price-to-book of 1.44 is below the Water Transportation median of 2.12.

Trading below fair value

The share price of $47.40 is below our fair value estimate of $98.86.

Margin of safety over 20%

The price is 52.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 1.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 87.1% over the last twelve months; the Water Transportation median is 1.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 38.8% over the last twelve months and averaged 17.2% over five years.

Return on capital over 10%

Return on invested capital was 29.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Dorian LPG's return on equity of 38.8% is above the Water Transportation median of 9.4%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 70.4% over the last twelve months, against a 5-year average of 38.2%.

Net margin above the industry

Dorian LPG's net margin of 70.4% is above the Water Transportation median of 20.1%.

Low debt

Debt is 33.8% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 62.5% five years ago to 33.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 83.4% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 8.20 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.99; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Dorian LPG paid dividends worth 7.1% of the share price over the last twelve months.

Yield above Treasuries

The 7.1% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Dorian LPG yields 7.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 5 fiscal years.

Covered by earnings

Dividends take 29.9% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.