Dorian LPG Ltd. Fundamental Analysis
Dorian LPG Ltd. (LPG) shows moderate financial fundamentals with a PE ratio of 9.17, profit margin of 40.51%, and ROE of 17.91%. The company generates $0.5B in annual revenue with weak year-over-year growth of -36.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LPG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLPG demonstrates superior asset utilization.
Valuation Score
ExcellentLPG trades at attractive valuation levels.
Growth Score
WeakLPG faces weak or negative growth trends.
Financial Health Score
ExcellentLPG maintains a strong and stable balance sheet.
Profitability Score
ExcellentLPG achieves industry-leading margins.
Key Financial Metrics
Is LPG Expensive or Cheap?
P/E Ratio
LPG trades at 9.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LPG's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Dorian LPG Ltd. at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.92 times EBITDA. This is generally considered low.
How Well Does LPG Make Money?
Net Profit Margin
For every $100 in sales, Dorian LPG Ltd. keeps $40.51 as profit after all expenses.
Operating Margin
Core operations generate 43.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.91 in profit for every $100 of shareholder equity.
ROA
Dorian LPG Ltd. generates $10.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dorian LPG Ltd. generates strong operating cash flow of $211.05M, reflecting robust business health.
Free Cash Flow
Dorian LPG Ltd. generates strong free cash flow of $191.60M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.48 in free cash annually.
FCF Yield
LPG converts 10.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How LPG Stacks Against Its Sector Peers
| Metric | LPG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.17 | 21.16 | Better (Cheaper) |
| ROE | 17.91% | 984.00% | Weak |
| Net Margin | 40.51% | -59500.00% (disorted) | Strong |
| Debt/Equity | 0.62 | -0.48 (disorted) | Distorted |
| Current Ratio | 2.67 | 4.98 | Strong Liquidity |
| ROA | 10.35% | -11018321.00% (disorted) | Strong |
LPG outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dorian LPG Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.51%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
3.10%
Industry Style: Cyclical, Value, Commodity
GrowingFCF CAGR
30.88%
Industry Style: Cyclical, Value, Commodity
High Growth