StealthGas Inc. (NASDAQ: GASS)

Sector: Industrials Industry: Marine Shipping CIK: 0001328919
Market Cap 297.06 Mn
P/B 0.44
P/E 4.79
P/S 1.68
ROIC (Qtr) 8.52
Div Yield % 0.00
Rev 1y % (Qtr) 10.10
Total Debt (Qtr) 137,780.00
Debt/Equity (Qtr) 0.00
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About

StealthGas Inc., popularly known as GASS, operates in the midstream energy sector, focusing on the ownership, operation, and acquisition of liquefied petroleum gas (LPG) carriers and related services. The company's operations span various regions, including the Asian and Mediterranean markets, where it has established a significant presence. StealthGas's primary business activities revolve around the transportation of LPG, ammonia, and methanol. These products are transported via a fleet of 24 LPG carriers, which are equipped with advanced technology...

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Investment thesis

Bull case

  • Strong operating cash flow of 82.07M provides robust 595.68x coverage of total debt 137780, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 69.71M provide 632.45x coverage of short-term debt 110224, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 697.87M provides 5065.11x coverage of total debt 137780, indicating robust asset backing and low credit risk.
  • Operating cash flow of 82.07M provides exceptional 22.44x coverage of interest expenses 3.66M, showing strong debt service capability.
  • Operating cash flow of 82.07M provides strong 13.63x coverage of stock compensation 6.02M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 82.07M barely covers its investment activities of (801306), with a coverage ratio of -102.42, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 69.71M provide limited coverage of acquisition spending of (3.01M), which is -23.16x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 10.12M relative to inventory of 3.32M (3.05 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 84.28M provides weak coverage of capital expenditures of (2.21M), with a -38.16 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 65.73M show weak coverage of depreciation charges of 26.56M, with a 2.48 ratio indicating high capital intensity and potential reinvestment needs.

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 0.35 0.60
EV to Cash from Ops. EV/CFO 2.96 6.07
EV to Debt EV to Debt 1,762.25 60.45
EV to EBIT EV/EBIT 3.69 4.74
EV to EBITDA EV/EBITDA 2.86 5.76
EV to Free Cash Flow [EV/FCF] EV/FCF 2.88 5.00
EV to Market Cap EV to Market Cap 0.82 29.59
EV to Revenue EV/Rev 1.37 2.00
Price to Book Value [P/B] P/B 0.44 1.07
Price to Earnings [P/E] P/E 4.79 13.80
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.47
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 68.67
Dividend per Basic Share Div per Share (Qtr) 0.00 1.18
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 105.16
Interest Coverage Int. cover (Qtr) 17.97 -7.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 103.57 -33.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.05 25.96
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 9.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11.81 -27.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.44 -36.36
EBIT Growth (1y) % EBIT 1y % (Qtr) -11.81 -26.39
EBT Growth (1y) % EBT 1y % (Qtr) -3.84 -36.07
EPS Growth (1y) % EPS 1y % (Qtr) -5.62 -30.68
FCF Growth (1y) % FCF 1y % (Qtr) 80.76 14.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.73 -7.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.25 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 3.25 1.33
Current Ratio Curr Ratio (Qtr) 5.02 2.15
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.73
Interest Cover Ratio Int Coverage (Qtr) 17.97 -7.10
Times Interest Earned Times Interest Earned (Qtr) 17.97 -7.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 52.10 27.36
EBIT Margin % EBIT Margin % (Qtr) 37.08 17.95
EBT Margin % EBT Margin % (Qtr) 35.02 10.77
Gross Margin % Gross Margin % (Qtr) 55.80 37.00
Net Profit Margin % Net Margin % (Qtr) 35.00 9.28