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Dorian LPG Ltd

Dorian LPG Ltd

LPG
$55.18USD↑+1.42%+0.77 today

MARKET CAP

2.4B

P/E (TTM)

19.4x

FWD P/E

—

DAY RANGE

$54 – $55

52W RANGE

$24
$55

AI Summary

Stalk
Buy NowMedium

LPG is in a Stage 2 advancing regime with a dominant Lockout Rally and series of higher highs and lows. Price is extended above rising EMAs with extreme overbought readings, yet Lockout Rally dynamics justify continued participation. We will buy now for continuation, focusing on shallow pullbacks into the 9-day EMA as execution zones.

  • ↑Q1 2027 revenue of $216.5M (+63% YoY) with net income at $138.3M vs $24M.
  • ↑Declared $1/share dividend ($42.8M), pushing total payouts above $1B since IPO.
  • ↓Valuations imply up to 31% overvaluation relative to fair value.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Dorian LPG Ltd. (NYSE: LPG) is a leading provider of liquefied petroleum gas (LPG) shipping services worldwide. The company operates a fleet of very large gas carriers (VLGCs) that provide transportation services for LPG globally. Dorian LPG is strategically positioned in a high-demand market, leveraging geopolitical dynamics that have disrupted traditional supply routes, particularly those from the Middle East to the U.S. Gulf. The company is focused on modernization initiatives for fleet sustainability and is benefiting from the rising export demands driven by the increased U.S. LPG production.

Bull says

  • ↑Q1 2027 revenue of $216.5M (+63% YoY) with net income at $138.3M vs $24M.
  • ↑Declared $1/share dividend ($42.8M), pushing total payouts above $1B since IPO.
  • ↑Recorded TCE revenue of $75.9K/day amid elevated VLGC rates.
  • ↑U.S. exports now account for 65% of global seaborne LPG volumes.
  • ↑High earnings yield and strong profitability support attractive returns.
  • ↑Fleet modernization and strategic positioning capitalize on geopolitical disruptions.

Bear says

  • ↓Valuations imply up to 31% overvaluation relative to fair value.
  • ↓Negative analyst revisions signal waning earnings expectations.
  • ↓Chief Commercial Officer sold 25K shares, highlighting insider caution.
  • ↓Operations highly sensitive to geopolitical shifts, risking volatile revenue.
  • ↓Elevated short interest and negative size outlook reflect investor skepticism.
  • ↓Daily OPEX at $10.3K/day pressures margin expansion.

Investment themes with LPG

Tankers↑ +0.45%

Companies operating oil and chemical tanker ships

ZIM · MATX · SBLK

Earnings Call · Q2 2024 · Mgmt. Guidance

Updated 12-04-2024bullish

Transcript signals

Bull points

  • The second quarter fiscal year 2024 is primarily characterized by record highs being registered on the Baltic indexes for VLGCs during September.
  • The widening arbitrage was therefore a reality over the quarter as were the delays.
  • And while more new buildings will have to be absorbed going forward and macroeconomic and geopolitical concerns also exist, optimism remains on the VLGC segments, while we move deeper into the inventory building season.

Bear points

  • Our caution relates to geopolitical and trade tensions.
  • To the list of unknowable issues, we recently added the climate impact on Panama Canal transits.
  • If it does happen, of course, it would have a very meaningful impact on the freight rate, I expect.
Read full transcript analysis ›