One-glance verdict
Undervalued
$52.26 our estimate vs market $26.23
50% below our estimate, below the bear case
Fundamentals snapshot
BW LPG Limited
BWLP · NYQ · Energy · Oil & Gas Midstream
Current price
$26.23
52-week range
$11.72 - $26.71
Market cap
$3.98B
Balance sheet
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5.50x Adequate
Net debt $626.48M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.5% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 75.8% over 3 years.
- Risk Stock trades 67.1% above its 5-year average P/E.
What this company does
BW LPG Limited
BW LPG Limited owns and operates a large fleet of ships that transport liquefied petroleum gas (LPG) all around the world. This means their main business is moving this fuel, and the money they make primarily comes from charging customers to use their ships for these deliveries. This is important because LPG is a key fuel source for many homes and industries, so BW LPG plays a vital role in getting it where it needs to go.
How the company got here
BW LPG Limited has a long history, tracing its roots back to 1935. It was formerly known as BW Gas LPG Holding Limited and changed its name in September 2013. The company has grown to become a significant player in the global energy transportation sector, with a focus on liquefied petroleum gas (LPG). Its journey includes strategic acquisitions, such as the significant purchase of the Avance Gas fleet, which has solidified its position as the world's leading owner and operator of LPG vessels. This growth has been underpinned by decades of experience in LPG shipping and a commitment to expanding its fleet and services.
What it actually does
BW LPG Limited is primarily involved in the shipping and trading of liquefied petroleum gas (LPG). Think of them as a crucial link in the global energy supply chain, responsible for moving LPG from where it's produced to where it's needed. They own and operate a large fleet of specialized ships called Very Large Gas Carriers (VLGCs) that are designed to transport LPG safely across oceans. Beyond just transporting the gas, BW LPG also engages in the buying and selling of LPG, offering integrated delivery services to its customers.
Shipping
The Shipping segment is the core of BW LPG's business and is where the company makes most of its money. This involves owning and operating a large fleet of Very Large Gas Carriers (VLGCs), which are essentially giant ships built specifically to carry liquefied petroleum gas (LPG) across long distances. These vessels are the workhorses that transport LPG from producers, like those in the United States and the Middle East, to major consumption centers, primarily in Asia. The revenue generated here comes from chartering these ships to customers who need to move LPG.
Product Services
The Product Services segment is BW LPG's in-house trading arm. This part of the business is responsible for buying and selling LPG on the global market. It's a more complex operation that involves managing cargo, freight, and hedging transactions to profit from price differences and market opportunities. While this segment can contribute significantly to the company's overall revenue, it often operates on very thin profit margins due to the highly competitive nature of the global LPG trading market.
What management is betting on now
BW LPG's management is focused on maintaining its leadership in the LPG shipping market while also expanding its integrated services. A key strategy involves investing in a modern and efficient fleet, including a growing number of dual-fuel vessels that can run on LPG, which aligns with the global push for cleaner energy sources. They are also strengthening their Product Services segment to offer more comprehensive solutions to customers, from sourcing and trading LPG to its final delivery. This dual approach aims to ensure the company's long-term growth and resilience in the dynamic energy sector.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $52.26 vs current price $26.23
Our most-likely fair value is $52.26 a share — about 99.2% above today's price of $26.23, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
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Net debt $626.5M. Interest coverage 5.5x.
Net debt
$626.48M
Interest coverage
5.50x
BW LPG Limited is healthier than 0 of 1 peers on balance-sheet leverage.
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Worse cushion
Baseline
Better cushion
BWLP
BASELINE
BW LPG Limited
Total debt $932.63M Interest coverage 5.50x This is the baseline the peer rows are being compared against.
What you should know
The case for and against BWLP
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.5% last year.
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Free cash flow was positive in 4/10 years.
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Dividend yield is 9.9% with 13-year payout history.
Risks
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Net debt grew 75.8% over 3 years.
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Stock trades 67.1% above its 5-year average P/E.
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Operating margin compressed from 15.9% to 13.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
8.92x
Forward P/E
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P/B
2.08x
P/S
1.13x
EV/EBITDA
6.96x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
25.2%
Operating margin
13.8%
Net margin
12.6%
ROE
25.5%
ROA
10.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.45x
Current ratio
1.44x
Quick ratio
1.11x
Total debt
$932.63M
Total cash
$306.15M
Growth
How the business has been compounding
Revenue TTM
$3.53B
Revenue 5Y CAGR
32.0%
EPS TTM
2.94
EPS 5Y CAGR
-1.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$567.40M
Free CF TTM
$385.02M
FCF margin
10.9%
Dividend
Shareholder payout
Yield
9.9%
Payout ratio
63.3%
Last ex-div date
2026-09-08