LPG — Dorian LPG

25 very large gas carriers (VLGCs) transporting LPG globally. Modern ECO-design fleet. Helios Pool joint venture. | Energy — LPG Shipping / Tankers | AGI Score: 4/10 | Analysis date: 2026-03-13

Why are we looking at this? — AMR Playbook — Fleet Value + Yield + Buybacks

Fleet of 25 VLGCs (physical assets) worth more than market cap. 8.2% dividend yield, 15% share buybacks. Highly cyclical but currently generating strong cash flow ($178M OCF). Fiscal year ends March 31 — note different timing. Ships are real assets with scrap value as floor.

$29.15
Stock Price
$1.2B
Market Cap
1.15x
Price / Book
1.19x
Price / Tangible Book
10.3x
P/E (trailing)
8.5x
P/E (forward)
$76M
Revenue (LTM)
$90M
Net Income
8.2%
Dividend Yield
Stock Price — LPG

1. The Business

Dorian LPG operates 25 very large gas carriers (VLGCs) transporting liquefied petroleum gas globally, with a focus on modern, fuel-efficient ECO-design vessels. Revenue comes from time charters, spot market voyages, and operation through the Helios Pool joint venture with MOL Energia.

Key Stats

SectorEnergy
IndustryOil & Gas Midstream
Employees587
ROE11.2%
ROA4.9%
Gross Margin63.4%
Operating Margin43.3%
Profit Margin30.4%

Market Data

52-Week Range$16.66 — $38.4
Beta0.682
Avg Volume568,826
Short Ratio2.56
EV / EBITDA8.2x
Analyst Target$36.125 (buy)
Float Shares37M
Payout Ratio86.6%

2. Balance Sheet

Balance Sheet Composition

ItemValue% of AssetsNotes
ASSETS ($1.8B)
PP&E (net)$1.2B66.7%Physical assets
Cash & Equivalents$317M17.8%
Other Assets$275M15.4%Receivables, investments, etc.
LIABILITIES
Long-Term Debt$499M28.0%
Other Liabilities$234M13.1%
EQUITY
Stockholders' Equity$1.0B58.8%
Tangible Book Value$1.0BEquity minus goodwill & intangibles
Tangible Book / Share$24.47vs price $29.15

3. Financial History

Metric202020212022202320242025
Revenue$95M$100M$80M$134M$141M$76M
Net Income$112M$93M$72M$172M$307M$90M
Total Assets$1.7B$1.6B$1.6B$1.7B$1.8B$1.8B
Equity$977M$947M$920M$874M$1.0B$1.0B
Long-Term Debt$582M$540M$591M$604M$552M$499M
Cash$48M$79M$237M$149M$283M$317M
OCF$169M$171M$119M$224M$388M$173M
PP&E$1.4B$1.4B$1.3B$1.3B$1.2B$1.2B
Goodwill
Shares (Diluted)54M50M40M40M40M42M

4. Shares Outstanding & Buybacks

PeriodShares (Diluted)Change
2020-03-3154,115,338
2021-03-3149,826,798-7.9%
2022-03-3140,365,088-19.0%
2023-03-3140,211,642-0.4%
2024-03-3140,450,567+0.6%
2025-03-3142,232,353+4.4%
Total Change-22.0%

Significant buyback activity. Share count declining 22% over the period. This mechanically increases EPS and book value per share even with no underlying growth.

5. 10x Entry Price Analysis

Working Backwards: What Entry Price Gives 10x?

Current EPS: $2.14 | Current Book/Share: $24.77 | Current Price: $29.15

Scenario7yr Future PriceEntry for 10xvs CurrentAssumptions
Conservative$43.91$4.39+564% below8% EPS growth, 12x exit P/E
Bull Case$85.19$8.52+242% below15% EPS growth, 15x exit P/E
Buyback Only$30.33$3.03+861%No revenue growth, buybacks continue at current rate, 12x P/E

6. AGI Impact Assessment (Score: 4/10)

Demand Boost4/10How much AGI increases demand for this company's products
Margin Expansion3/10How much AGI reduces costs / expands margins
Strategic Assets5/10Unique assets that become more valuable with AGI
Disruption Risk4/10Risk that AGI disrupts the core business model
Innovation Risk5/10Risk of being out-innovated by AGI-native competitors
Overall AGI Score4/10Category: minimal_impact

Reasoning: Shipping is capital-intensive with physical constraints that AGI cannot quickly overcome. AGI may modestly increase global trade and petrochemical demand (slight demand boost), and could optimize routing/fuel efficiency (minor margin gains). However, the core business—moving physical LPG across oceans—remains unchanged. Innovation risk exists from alternative energy sources, but deployment timeline is 15+ years for energy infrastructure. Net impact is neutral to slightly positive, but heavily dependent on macro energy transition dynamics outside AGI's direct influence.

7. Bull & Bear Cases

Bull Case

  • 8.2% dividend yield — high cash distribution
  • 25 VLGCs are real physical assets with scrap value as floor
  • Modern ECO-design fleet is fuel-efficient — competitive advantage in IMO regulations
  • LPG demand growing in Asia (cooking, petrochemicals) — structural tailwind
  • 15% buybacks demonstrate capital discipline

Bear Case

  • Highly cyclical — charter rates can collapse (revenue dropped 46% in FY2025 ending March)
  • Asset-heavy with depreciation — ships lose value over time
  • Concentrated in single commodity (LPG) — no diversification
  • Spot market exposure means earnings volatility
  • Oil price decline could reduce LPG supply and shipping demand

8. Initial Assessment

Summary

LPG (Dorian LPG) trades at 1.15x book value (1.19x tangible book) with $90M net income on a $1.2B market cap (7.2% earnings yield). ROE of 11.2%. Shares have declined 22% over the measurement period through buybacks.

Verdict: WATCHLIST — Cyclical Asset Play. The 25 VLGCs are real assets with scrap value providing a floor. 8.2% dividend + 15% buybacks = massive capital return. But revenue dropped 46% in FY2025 (ending March) showing extreme cyclicality. Tanker shipping is a boom-bust industry. The AMR playbook works here IF you can stomach the volatility. Ships depreciate, so this is a wasting asset requiring reinvestment. Entry zone: $20-24 (floor based on scrap value of fleet minus debt).

Data sources: SEC EDGAR XBRL (CIK 1596993), yfinance, 10-K filing, AGI scoring framework. Analysis date: 2026-03-13.