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Stealthgas (GASS)
NASDAQ:GASS
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StealthGas
(NASDAQ:GASS)
76Outperform
Positive Factors
Financial Health
Free cash flow was up 80% year over year, indicating strong financial health.
Financial Performance
GASS reported 4Q24 results above expectations and increased its share.
Revenue Stability
GASS secured contracts for 65% of operating days in 2025 and for $100M of revenue, highlighting future revenue stability.
Negative Factors
Demand Forecast
Lower liquefied petroleum gas demand in Europe led to a slight reduction in estimates.
Market Demand
LPG shipping rates decreased due to lower demand in Europe.
StealthGas (GASS) vs. S&P 500 (SPY)
Market Cap
$218.24M
Dividend YieldN/A
Average Volume (3M)100.63K
Price to Earnings (P/E)3.0
Beta (1Y)0.11
Revenue Growth16.54%
EPS Growth42.56%
CountryUS
Employees463
SectorIndustrials
Sector Strength67
IndustryTransportation
Share Statistics
EPS (TTM)1.96
Shares Outstanding36,741,272
10 Day Avg. Volume82,740
30 Day Avg. Volume100,633
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)N/A
Price to Sales (P/S)1.46
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside70.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
StealthGas Business Overview & Revenue Model
Company DescriptionStealthGas Inc. (GASS) is a leading international provider of seaborne transportation services for liquefied petroleum gas (LPG) and other gaseous products. The company operates a fleet of modern LPG carriers, primarily focusing on the regional transportation of LPG and petrochemical gases. StealthGas serves a diverse range of clients, including major oil companies and leading chemical manufacturers, across various global shipping routes.
How the Company Makes MoneyStealthGas makes money primarily through the chartering of its LPG carriers. The company's revenue model is based on securing short-term and long-term charter contracts with customers who need to transport LPG and related products. These contracts can be fixed-rate or variable, depending on the terms agreed upon with the charterers. StealthGas also benefits from strategic partnerships and relationships with key players in the oil and gas industry, which help to ensure a steady demand for its shipping services. Additionally, the company may generate income from the sale of vessels or through acquiring and managing additional vessels to expand its fleet capabilities.
StealthGas Financial Statement Overview
Summary
StealthGas is performing well financially with strong profitability and efficient use of equity. It has shown revenue growth and maintained solid margins. However, the significant decrease in free cash flow growth indicates potential liquidity concerns that need attention. The balance sheet reflects sound financial health with low leverage, positioning the company well for future growth.Income Statement
StealthGas demonstrates strong profitability with a TTM gross profit margin of 46.9% and a net profit margin of 40.9%. The revenue growth rate from the previous annual period is 10%, which is promising. The company has improved its EBIT and EBITDA margins over the years, indicating efficient operations and cost management.84
Very Positive
Balance Sheet
The balance sheet shows a healthy equity position with a debt-to-equity ratio of 0.14, indicating low leverage. The return on equity (ROE) is robust at 10.6%, highlighting effective use of equity. However, the equity ratio is 84.7%, which reflects a high reliance on equity financing.78
Positive
Cash Flow
StealthGas has a positive free cash flow growth rate of -85.6% in the TTM, which is concerning. However, the operating cash flow to net income ratio is strong at 1.67, suggesting that the company efficiently converts earnings into cash. The free cash flow to net income ratio is lower at 0.17, indicating potential challenges in maintaining free cash flow levels.72
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 157.93M | 143.53M | 152.76M | 150.20M | 145.00M | 144.26M | Gross Profit |
| 74.11M | 50.85M | 72.68M | 61.20M | 73.69M | 70.32M | EBIT |
| 55.37M | 40.99M | 36.22M | 13.91M | 28.33M | 23.19M | EBITDA |
| 87.08M | 73.28M | 63.39M | 6.44M | 61.33M | 61.78M | Net Income Common Stockholders |
| 64.55M | 51.94M | 34.25M | -35.12M | 11.98M | 2.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 74.80M | 77.20M | 82.27M | 31.30M | 38.24M | 68.47M | Total Assets |
| 994.32M | 697.21M | 821.53M | 798.67M | 944.01M | 953.44M | Total Debt |
| 403.81M | 123.64M | 277.11M | 293.90M | 351.80M | 366.46M | Net Debt |
| 329.02M | 46.44M | 221.34M | 262.60M | 313.55M | 297.99M | Total Liabilities |
| 432.00M | 147.55M | 303.61M | 323.90M | 379.41M | 394.25M | Stockholders Equity |
| 562.31M | 549.66M | 517.93M | 474.77M | 564.60M | 559.19M |
| Cash Flow | Free Cash Flow | ||||
| 11.13M | 77.36M | 42.33M | 15.81M | 3.99M | 27.83M | Operating Cash Flow |
| 107.72M | 77.44M | 66.56M | 41.04M | 52.11M | 30.82M | Investing Cash Flow |
| -61.20M | 111.34M | -17.26M | -19.25M | -58.07M | 34.24M | Financing Cash Flow |
| -51.03M | -174.18M | -25.85M | -29.13M | -23.12M | -62.37M |
StealthGas Technical Analysis
Positive
5.88
Price Trends
5.69
Positive
5.63
Positive
6.14
Negative
Market Momentum
0.06
Negative
57.98
Neutral
76.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GASS, the sentiment is Positive. The current price of 5.88 is above the 20-day moving average (MA) of 5.65, above the 50-day MA of 5.69, and below the 200-day MA of 6.14, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 76.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GASS.
StealthGas Risk Analysis
StealthGas disclosed 59 risk factors in its most recent earnings report. StealthGas reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
StealthGas Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.95B | 2.84 | 24.68% | 4.07% | -7.25% | 31.85% | |
76 Outperform | $218.24M | 3.04 | 11.88% | ― | 16.54% | 42.56% | |
75 Outperform | $1.20B | 3.36 | 12.41% | 0.51% | 2.08% | -14.92% | |
75 Outperform | $990.50M | 5.90 | 15.72% | ― | -24.25% | -48.08% | |
74 Outperform | $1.75B | 9.67 | 17.56% | 8.73% | 2.11% | 13.10% | |
71 Outperform | $407.79M | 3.27 | 21.87% | 9.51% | 46.10% | ― | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% |
* Industrials Sector Average
Performance Comparison
GASS
StealthGas
5.88
-0.06
-1.01%
DHT
DHT Holdings
10.53
-0.03
-0.28%
NMM
Navios Maritime Partners
39.24
-3.20
-7.54%
STNG
Scorpio Tankers
38.05
-31.51
-45.30%
ASC
Ardmore Shipping
10.04
-5.45
-35.18%
LPG
Dorian LPG
22.43
-11.85
-34.57%
StealthGas Earnings Call Summary
Earnings Call Date: Feb 21, 2025 | % Change Since: 5.95% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with record-breaking revenue and profit, significant debt reduction, and strategic share repurchases. However, it also acknowledged challenges from dry docking costs, increased operating expenses, and geopolitical uncertainties that could impact future performance.Highlights
Record-Breaking Revenue
Revenues for Q4 2024 were $43.5 million, a 27% increase from the previous year, with full-year revenues reaching $167.3 million, the highest in the company's history.
Sustained Profit Growth
The company recorded a yearly profit of $77 million on an adjusted basis, marking the third consecutive year of record profits.
Significant Debt Reduction
The company reduced its debt by $108 million in 2024, bringing it below $100 million for the first time, and further reduced it to $50 million in 2025, becoming net debt-free.
Strong Cash Flow and Share Repurchase Plan
The company has authorized $10.5 million for share repurchases, with a focus on optimizing cash flow generation.
High Secured Future Revenues
The company secured $200 million in future revenues with 70% fleet days coverage for 2025.
Lowlights
Dry Docking Costs
The company's Q4 2024 results were negatively impacted by dry docking expenses, with three vessels undergoing scheduled dry dockings, affecting revenue and operating expenses.
High Operating Expenses
Operating expenses increased by 6% for the quarter due to higher crew costs and maintenance fees, impacting overall profitability.
Geopolitical Uncertainties
Geopolitical issues such as the Russia-Ukraine conflict, Iranian sanctions, and potential US-China trade tensions present uncertainties that could affect LPG trade dynamics.
Company Guidance
In the StealthGas Inc. Q4 2024 earnings call, the company reported a record revenue of $167.3 million for the year, marking a 27% increase from the previous year and achieving the highest revenue in its history. The adjusted net income for the year was $77.3 million, a 53% increase from 2023, and the adjusted earnings per share stood at $2.11. The company successfully reduced its debt below $100 million by the third quarter and made further repayments, bringing the debt level close to $50 million, achieving a net debt-free status. Additionally, they secured $107 million in revenues for 2025, with 70% of fleet days covered, and announced a share repurchase program of up to $10.5 million. The company also noted that geopolitical factors could impact the LPG market, but expressed confidence in its strategic positioning and continued focus on fleet modernization and revenue security.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.