One-glance verdict
Undervalued
$121.87 our estimate vs market $48.10
Wall Street consensus: $57.20 (-53.1% lower than our fair-value estimate)
61% below our estimate, below the bear case
Fundamentals snapshot
Dorian LPG Ltd.
LPG · NYQ · Energy · Oil & Gas Midstream
Current price
$48.10
52-week range
$23.76 - $59.97
Market cap
$2.07B
Balance sheet
Watch
7.93x Adequate
Net debt $25.26M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 41.7% last year.
- Reward Returns 38.8% on equity, ahead of 83% of its peers.
- Risk Forward P/E (8.6x) is higher than trailing (4.3x) - earnings are expected to drop.
- Risk Insider ownership is only 14.0% (peer median: 36.0%).
What this company does
Dorian LPG Ltd.
Dorian LPG Ltd. is a company that owns and operates ships specifically designed to carry liquefied petroleum gas (LPG) all around the world. The money they make primarily comes from charging customers to use these ships for transporting LPG. This matters because Dorian LPG is a key player in making sure this vital energy source gets to where it needs to go, which impacts energy prices and availability.
How the company got here
Dorian LPG Ltd. was founded in 2013 by shipping executives who had been involved in the LPG market since 2002. The company was established to build a modern fleet of Very Large Gas Carriers (VLGCs) to capitalize on the growing global trade of liquefied petroleum gas (LPG). A significant step in its history was going public in 2014 through a merger, which provided access to capital markets to fund its fleet expansion. Since then, Dorian LPG has focused on operating a relatively young and efficient fleet, emphasizing safety, reliability, and environmental responsibility in its operations.
What it actually does
Dorian LPG is in the business of transporting liquefied petroleum gas (LPG) across the oceans. Think of them as a specialized trucking company, but for giant ships that carry LPG, which is a fuel commonly used for cooking and heating. They own and operate a fleet of these large ships, called Very Large Gas Carriers (VLGCs), to move LPG from where it's produced to where it's needed around the world. They make money by charging customers for the use of these ships to transport their LPG cargoes.
Transportation of liquefied petroleum gas by sea
This is Dorian LPG's sole business segment. The company operates a fleet of Very Large Gas Carriers (VLGCs) that transport liquefied petroleum gas (LPG) globally. LPG, a mixture of propane and butane, is a cleaner-burning fuel used for cooking, heating, and industrial purposes. Dorian LPG's services are crucial for connecting major LPG export regions, such as the U.S. Gulf and the Middle East, with importing markets in Asia, Europe, and Latin America. The company generates revenue by chartering its vessels, either for specific voyages (spot charters) or for fixed periods (time charters), to commercial freight buyers like LPG producers, commodity traders, and energy companies. This segment represents the entirety of Dorian LPG's operations, making it a highly focused company within the energy logistics sector.
What management is betting on now
Dorian LPG's management is focused on several key strategies to ensure the company's long-term success. They are investing in a modern and eco-efficient fleet, including dual-fuel vessels that can run on LPG, to meet future environmental standards and reduce operating costs through better fuel efficiency. The company is also strategically selling older vessels while ordering new, advanced ships, like Panamax dual-fuel VLGCs, which are designed to navigate canal congestion and capitalize on evolving trade routes. Furthermore, Dorian LPG is leveraging strategic partnerships and pool agreements, such as the Helios Pool, to optimize fleet utilization, share costs, and enhance its market position. This approach aims to convert the cyclical nature of the shipping market into consistent returns for shareholders by focusing on fleet quality, operational efficiency, and disciplined financial management.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$221.35M
Net income
$213.86M
Diluted EPS
4.98
Operating cash flow
$204.89M
Free cash flow
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Sources
Revenue
$187.88M
Net income
$138.29M
Diluted EPS
3.24
Operating cash flow
$30.47M
Free cash flow
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Sources
Revenue
$153.27M
Net income
$81.01M
Diluted EPS
1.90
Operating cash flow
$82.15M
Free cash flow
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Sources
Revenue
$119.96M
Net income
$47.19M
Diluted EPS
1.11
Operating cash flow
$80.77M
Free cash flow
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Sources
Revenue
$124.06M
Net income
$55.38M
Diluted EPS
1.30
Operating cash flow
$46.41M
Free cash flow
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Sources
Revenue
$84.21M
Net income
$10.08M
Diluted EPS
0.24
Operating cash flow
$814.47K
Free cash flow
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Revenue
$75.89M
Net income
$8.09M
Diluted EPS
0.19
Operating cash flow
$50.20M
Free cash flow
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Revenue
$80.67M
Net income
$21.36M
Diluted EPS
0.50
Operating cash flow
$24.26M
Free cash flow
$18.59M
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Sources
Is it cheap or expensive?
Fair value $121.87 vs current price $48.10
Wall Street consensus is the average analyst price target: $57.20 (-53.1% lower than our fair-value estimate).
Our most-likely fair value is $121.87 a share — about 153.3% above today's price of $48.10, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $25.3M. Interest coverage 7.9x.
Net debt
$25.26M
Interest coverage
7.93x
Dorian LPG Ltd.'s profit covers its interest bill about 7.9 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
LPG
BASELINE
Dorian LPG Ltd.
Total debt $604.03M Interest coverage 7.93x This is the baseline the peer rows are being compared against.
Total debt $768.04M Interest coverage 2.51x -68% vs LPG Carries about 3.2x less debt cushion than LPG.
Total debt $932.63M Interest coverage 5.50x -31% vs LPG Carries about 1.4x less debt cushion than LPG.
Total debt $62.66M Interest coverage 10.33x +30% vs LPG Carries about 1.3x more debt cushion than LPG.
Total debt $37.50M Interest coverage 74.24x +836% vs LPG Carries about 9.4x more debt cushion than LPG.
Total debt $1.79B Interest coverage 1.90x -76% vs LPG Carries about 4.2x less debt cushion than LPG.
What you should know
The case for and against LPG
3 Rewards
2 Risks
Rewards
-
Revenue grew 41.7% last year.
-
Returns 38.8% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (8.6x) is higher than trailing (4.3x) - earnings are expected to drop.
-
Insider ownership is only 14.0% (peer median: 36.0%).
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)
4.28x
Forward P/E
8.63x
P/B
1.46x
P/S
3.04x
EV/EBITDA
4.41x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
76.6%
Operating margin
58.9%
Net margin
70.7%
ROE
38.8%
ROA
13.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.43x
Current ratio
8.20x
Quick ratio
7.20x
Total debt
$604.03M
Total cash
$578.77M
Growth
How the business has been compounding
Revenue TTM
$682.47M
Revenue 5Y CAGR
46.9%
EPS TTM
11.23
EPS 5Y CAGR
1.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$398.28M
Free CF TTM
$116.30M
FCF margin
17.0%
Dividend
Shareholder payout
Yield
8.5%
Payout ratio
29.8%
Last ex-div date
2026-11-09