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Stealthgas (GASS)
NASDAQ:GASS
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StealthGas
(NASDAQ:GASS)
77Outperform
Positive Factors
Debt Management
The net debt-to-EBITDA ratio improved significantly, showing effective debt management.
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
Market Demand
LPG shipping rates decreased due to lower demand in Europe.
Market Estimates
Slightly reduce 4Q24 estimates on lower LPG demand in Europe after mixed 3Q24 results.
StealthGas (GASS) vs. S&P 500 (SPY)
Market Cap
$198.58M
Dividend YieldN/A
Average Volume (3M)78.80K
Price to Earnings (P/E)2.7
Beta (1Y)0.37
Revenue Growth16.54%
EPS Growth42.56%
CountryUS
Employees602
SectorIndustrials
Sector Strength83
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.44
Shares Outstanding36,978,680
10 Day Avg. Volume53,057
30 Day Avg. Volume78,798
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)0.30
Price to Sales (P/S)0.00
P/FCF Ratio-73.79
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit2.73
Enterprise Value/Ebitda0.57
Forecast
1Y Price Target
$10.00Price Target Upside83.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
StealthGas Business Overview & Revenue Model
Company DescriptionStealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users internationally. It also provides crude oil and natural gas. The company's carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene, and vinyl chloride monomer; and refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals. As of December 31, 2021, it had a fleet of 44 LPG carriers with a total capacity of 389,426 cubic meters; three medium range product carriers with a total capacity of 140,000 deadweight tons (dwt); and one Aframax crude oil tanker with a total capacity of 115,804 dwt. StealthGas Inc. was incorporated in 2004 and is based in Athens, Greece.
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 shows strong financial health with impressive revenue and profit growth, improved operational efficiency, and a solid balance sheet with reduced leverage. Despite the negative free cash flow due to high reinvestment, the company maintains strong cash generation and a robust equity position, making it well-positioned for future growth in the transportation industry.Income Statement
StealthGas demonstrated strong revenue growth of 16.53% from 2023 to 2024, with an impressive increase in gross profit margin from 35.4% to 60.1%. Net profit margin improved significantly to 41.77% in 2024 from 36.18% in 2023. The EBIT margin soared to 35.78% in 2024, showcasing enhanced operational efficiency. EBITDA margin also reflected strong performance at 51.34%. Overall, the company shows robust growth and profitability.85
Very Positive
Balance Sheet
The company improved its equity base with a rising stockholders' equity reaching $626.5 million. The debt-to-equity ratio decreased significantly from 0.22 in 2023 to 0.14 in 2024, indicating reduced leverage risk. The return on equity (ROE) improved to 11.15% in 2024 from 9.45% in 2023. The equity ratio increased to 85.55%, suggesting a strong equity cushion. However, total assets decreased slightly, reflecting potential asset management challenges.75
Positive
Cash Flow
Operating cash flow increased to $103.5 million, indicating robust cash generation capabilities. However, free cash flow turned negative in 2024 due to high capital expenditures, reflecting aggressive reinvestment strategies. The operating cash flow to net income ratio remained strong, reflecting efficient cash conversion. The free cash flow to net income ratio, however, was negative, highlighting potential liquidity constraints.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 167.26M | 143.53M | 152.76M | 150.20M | 145.00M | Gross Profit |
| 74.38M | 50.85M | 72.68M | 61.20M | 73.69M | EBIT |
| 59.86M | 40.99M | 36.22M | 13.91M | 28.33M | EBITDA |
| 85.89M | 73.28M | 63.39M | 6.44M | 61.33M | Net Income Common Stockholders |
| 69.86M | 51.94M | 34.25M | -35.12M | 11.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 80.65M | 77.20M | 82.27M | 31.30M | 38.24M | Total Assets |
| 732.24M | 697.21M | 821.53M | 798.67M | 944.01M | Total Debt |
| 84.89M | 123.64M | 277.11M | 293.90M | 351.80M | Net Debt |
| 4.24M | 46.44M | 221.34M | 262.60M | 313.55M | Total Liabilities |
| 105.71M | 147.55M | 303.61M | 323.90M | 379.41M | Stockholders Equity |
| 626.53M | 549.66M | 517.93M | 474.77M | 564.60M |
| Cash Flow | Free Cash Flow | |||
| -2.67M | 77.36M | 42.33M | 15.81M | 3.99M | Operating Cash Flow |
| 103.50M | 77.44M | 66.56M | 41.04M | 52.11M | Investing Cash Flow |
| -64.48M | 111.34M | -17.26M | -19.25M | -58.07M | Financing Cash Flow |
| -38.25M | -174.18M | -25.85M | -29.13M | -23.12M |
StealthGas Technical Analysis
Negative
5.46
Price Trends
5.46
Negative
5.53
Negative
5.85
Negative
Market Momentum
>-0.01
Negative
49.37
Neutral
28.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GASS, the sentiment is Negative. The current price of 5.46 is above the 20-day moving average (MA) of 5.29, above the 50-day MA of 5.46, and below the 200-day MA of 5.85, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 28.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $249.06M | 2.18 | 35.83% | 6.93% | 12.43% | -1.63% | |
77 Outperform | $198.58M | 2.72 | 11.88% | ― | 16.54% | 42.56% | |
71 Outperform | $125.00M | 2.83 | 16.96% | 11.34% | 51.91% | 2984.06% | |
70 Outperform | $290.08M | 7.04 | 7.69% | 9.97% | 7.46% | 8.41% | |
64 Neutral | $4.36B | 12.05 | 5.23% | 249.94% | 4.13% | -10.23% | |
55 Neutral | $160.92M | 23.64 | 2.56% | 12.23% | -12.93% | -86.34% | |
43 Neutral | $25.23M | ― | -9.22% | ― | 28.35% | -238.53% |
* Industrials Sector Average
Performance Comparison
GASS
StealthGas
5.46
-1.14
-17.27%
DSX
Diana Shipping
1.41
-1.55
-52.36%
ESEA
Euroseas
38.42
9.11
31.08%
SHIP
Seanergy Maritime
5.98
-3.56
-37.32%
PANL
Pangaea Logistics Solutions
4.42
-2.88
-39.45%
EDRY
EuroDry
9.22
-12.60
-57.75%
StealthGas Earnings Call Summary
Earnings Call Date:Feb 21, 2025
(Q4-2024)
| % Change Since: -1.62%|
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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.