BW LPG Ltd (NYSE: BWLP)

Sector: Industrials Industry: Marine Shipping CIK: 0001649313
Market Cap 2.38 Bn
P/B 1.23
P/E 10.97
P/S 0.67
ROIC (Qtr) 0.00
Div Yield % 11.67
Rev 1y % (Qtr) 17.23
Total Debt (Qtr) 1.09 Bn
Debt/Equity (Qtr) 0.57
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About

Investment thesis

Bull case

  • Strong tangible asset base of 3.34B provides 3.06x coverage of total debt 1.09B, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 3.34B provides 13.11x coverage of working capital 254.68M, indicating strong operational backing.
  • Tangible assets of 3.34B provide robust 45.32x coverage of other current liabilities 73.68M, indicating strong asset backing.
  • Strong cash position of 293.10M provides 3.98x coverage of other current liabilities 73.68M, indicating excellent liquidity.
  • Retained earnings of 558.49M provide strong 7.58x coverage of other current liabilities 73.68M, indicating earnings quality.

Bear case

  • High receivables of 298.84M relative to inventory of 124.88M (2.39 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Other non-current assets of 30.28M provide minimal coverage for long-term debt of 865.31M, which is 0.03x, indicating potential asset-liability mismatch.
  • Other current assets of 77.75M provide weak coverage of payables of 240.62M, which is 0.32x, suggesting potential working capital stress in near term.

Peer comparison

Companies in the Marine Shipping
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KEX Kirby Corp 7.05 Bn 19.89 2.10 1.13 Bn
2 MATX Matson, Inc. 6.79 Bn 74.01 4.43 0.72 Bn
3 ZIM ZIM Integrated Shipping Services Ltd. 3.36 Bn 3.35 0.44 5.66 Bn
4 HAFN Hafnia Ltd 3.35 Bn 10.82 1.51 0.89 Bn
5 BWLP BW LPG Ltd 2.38 Bn 10.97 0.67 1.09 Bn
6 SBLK Star Bulk Carriers Corp. 2.37 Bn 245.30 3.42 1.23 Bn
7 CMRE Costamare Inc. 2.05 Bn 6.81 1.69 1.58 Bn
8 DAC Danaos Corp 1.99 Bn 4.27 1.93 0.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.97 0.60
EV to Cash from Ops. EV/CFO 5.84 6.07
EV to Debt EV to Debt 2.95 60.45
EV to EBIT EV/EBIT 12.20 4.74
EV to EBITDA EV/EBITDA 5.80 5.76
EV to Free Cash Flow [EV/FCF] EV/FCF -15.62 5.00
EV to Market Cap EV to Market Cap 1.36 29.59
EV to Revenue EV/Rev 0.91 2.00
Price to Book Value [P/B] P/B 1.23 1.07
Price to Earnings [P/E] P/E 10.97 13.80
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 2.47
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 68.67
Dividend per Basic Share Div per Share (Qtr) 1.96 1.18
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 105.16
Interest Coverage Int. cover (Qtr) 0.00 -7.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -33.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 25.96
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 9.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 -27.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -36.36
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 -26.39
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 -36.07
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -30.68
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 14.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 -7.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 0.54 1.33
Current Ratio Curr Ratio (Qtr) 1.47 2.15
Debt to Equity Ratio Debt/Equity (Qtr) 0.57 0.73
Interest Cover Ratio Int Coverage (Qtr) 0.00 -7.10
Times Interest Earned Times Interest Earned (Qtr) 0.00 -7.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 27.36
EBIT Margin % EBIT Margin % (Qtr) 0.00 17.95
EBT Margin % EBT Margin % (Qtr) 0.00 10.77
Gross Margin % Gross Margin % (Qtr) 0.00 37.00
Net Profit Margin % Net Margin % (Qtr) 0.00 9.28