Stock on Focus: Dorian LPG Ltd. (LPG)

Company Profile:

Dorian LPG Ltd is a pure-play liquefied petroleum gas (LPG) shipping company, based in the Marshall Islands. The Company operates three very large gas carriers (VLGC) and one pressurized LPG vessel. Additionally, it contracts for 16 fuel-efficient VLGC newbuildings, with deliveries scheduled for 2014 and 2015. It operates through offices located in the United States, the United Kingdom and Greece. Its customers include Petrobras, Shell, Statoil, Vitol, and Mitsui O.S.K. Lines. The company was founded in 2013 and is headquartered in Stamford, Connecticut.

Recent News:

On Jan. 29, 2016, Dorian LPG Ltd. reports financial results for the quarter ended December 31, 2015. Revenues of USD 93.28 million, Net Earnings of USD 54.66 million, and Earnings per Share (EPS) of USD 0.97. Adjusted EBITDA of $68.7 million.

On Dec. 21,2015, the Board of Directors of the company adopted a shareholder rights plan and declared a dividend distribution of one preferred share purchase right on each outstanding share of Company common stock.

On Dec. 11, 2015, the “Company reported today that it took delivery of the ECO VLGC Challenger from Hyundai Samho Heavy Industries.  The Challenger is Dorian LPG’s 18th newbuilding delivery. The Challenger will trade in the Helios LPG Pool.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

LPG’s strengths can be seen in its strong growth and robust profitability. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 46.37. We rate Dorian LPG Ltd. (LPG) a Strong BUY.