UBS Group Downgrades Dorian LPG Stock Rating
January 11, 2023
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DORIAN LPG ($NYSE:LPG) is a US-based shipping company specializing in the transportation of liquefied petroleum gas (LPG). Recently, however, UBS Group has downgraded their stock rating for DORIAN LPG. UBS Group, a global financial services company, has downgraded DORIAN LPG from a “buy” rating to a “neutral” rating. The report also noted that the current market environment has resulted in a decrease in ship charter rates, which has put pressure on DORIAN LPG’s bottom line. The downgrade has put further pressure on DORIAN LPG’s stock price, which has already been falling due to the uncertain economic outlook.
Despite this, DORIAN LPG remains committed to its growth strategy and is determined to navigate the current market conditions. Overall, the downgrade from UBS Group serves as an indication of the challenging market conditions for DORIAN LPG and other shipping companies. Although the company is facing headwinds in the current environment, its long-term prospects remain strong and it is confident that it will be able to weather the storm and emerge from this period of market volatility with a strong balance sheet.
Stock Price
On Monday, UBS Group downgraded the stock rating of Dorian LPG from “Buy” to “Neutral,” citing the current media sentiment towards the company which is mostly positive. Despite the downgrade, Dorian LPG stock opened at $16.6 and closed at the same price, up by 1.3% from its previous closing price of $16.4. The UBS Group’s decision to downgrade Dorian LPG stock rating is surprising given the strong performance of the company’s stock in recent weeks. Despite the downgrade, Dorian LPG remains a strong investment opportunity and is likely to continue to outperform in the long-term.
The company’s strong fundamentals, coupled with its solid financial position, make it a good pick for investors looking for potential growth. Investors should also keep an eye on the company’s upcoming earnings report, which is expected to be released in the coming weeks. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dorian Lpg. More…
| Total Revenues | Net Income | Net Margin |
| 300.98 | 97.12 | 23.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dorian Lpg. More…
| Operations | Investing | Financing |
| 128.28 | 27.49 | -117.25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dorian Lpg. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.49k | 663.09 | 20.46 |
Key Ratios Snapshot
Some of the financial key ratios for Dorian Lpg are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | 14.7% | 33.5% |
| FCF Margin | ROE | ROA |
| 36.1% | 9.4% | 5.3% |
VI Analysis
DORIAN LPG‘s fundamentals reflect its long term potential, which can be seen in its high health score of 8/10 based on the VI Star Chart. This indicates that the company is capable of sustaining future operations during times of crisis, as it has strong cash flows and debt. The company is also strong in growth, but medium in asset, dividend, and profitability. As a result, it is classified as a ‘rhino’ – a type of company that has achieved moderate revenue or earnings growth. This type of company may be of interest to those who are looking for long-term investments. They may invest in DORIAN LPG in order to benefit from its strong fundamentals, while also having the potential of realizing returns from its moderate growth. Moreover, since the company is relatively established and has a good health score, it is less risky compared to investing in more volatile companies. Investors may also benefit from the company’s dividend payments and asset utilization. Its strong cashflows, healthy debt levels, and moderate growth make it an attractive option for investors who are looking for stability and consistent returns over time. More…
VI Peers
The global liquefied petroleum gas (LPG) market is expected to grow at a CAGR of over 5% during the period 2019–2024. The LPG market is highly competitive with the presence of several large and small players. The four largest players in the market are Dorian LPG Ltd, Navigator Holdings Ltd, Avance Gas Holding Ltd, and Exmar NV, which together accounted for a market share of around 40% in 2018. The company has a strong presence in all major LPG shipping regions, including the Atlantic Basin, the Mediterranean, the Far East, and Australia. Navigator Holdings Ltd is a leading global provider of seaborne transportation solutions for liquefied petroleum gas (LPG). The company has a modern and efficient fleet of Very Large Gas Carriers (VLGCs), which it uses to transport LPG to its customers around the world. Avance Gas Holding Ltd is a leading global provider of seaborne transportation solutions for liquefied petroleum gas (LPG). The company has a modern and efficient fleet of Very Large Gas Carriers (VLGCs), which it uses to transport LPG to its customers around the world. Exmar NV is a leading global provider of seaborne transportation solutions for liquefied petroleum gas (LPG). The company has a modern and efficient fleet of Very Large Gas Carriers (VLGCs), which it uses to transport LPG to its customers around the world.
– Navigator Holdings Ltd ($NYSE:NVGS)
Navigator Holdings Ltd owns and operates a fleet of very large ethane and liquefied petroleum gas carriers. As of March 31, 2021, the company’s operated fleet consisted of 44 vessels. It serves energy companies, refiners, and chemical producers in the United States, Europe, Asia, and South America.
– Avance Gas Holding Ltd ($OTCPK:AVACF)
As of 2022, Avance Gas Holding Ltd has a market cap of 435M and a Return on Equity of 7.85%. The company is a leading provider of liquefied petroleum gas (LPG) transportation and storage services. It operates a fleet of LPG carriers and has a global customer base. The company is headquartered in Singapore.
– Exmar NV ($LTS:0EEV)
Exmar NV is a Belgian shipping company that was founded in Antwerp in 1892. The company is involved in the maritime transportation of crude oil, natural gas, and petrochemicals. As of 2022, Exmar NV had a market capitalization of 561.39 million euros and a return on equity of 0.89%. The company’s fleet consists of approximately 60 vessels, including crude oil tankers, liquefied natural gas carriers, and floating storage units.
Summary
Investors considering Dorian LPG should take note of the recent downgrade in the UBS Group’s stock rating. Although current market sentiment is mostly positive, there are certain risks associated with investing in the company. Analysts point to weaker than expected earnings, a high debt-to-equity ratio, and a challenging business environment due to factors such as oil prices, geopolitical uncertainty, and increased competition. Investors should do their due diligence and consider potential risks before investing in Dorian LPG.
Additionally, the company has recently taken steps to improve its financial position, such as cost cutting and cash flow management initiatives. These could provide potential upside to the stock price in the long term.
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