Considering BW LPG's solid operating income of
523.7M and its relatively low enterprise value to revenue ratio of 0.59, the stock could be an attractive buy for retail investors looking to capitalize on potential growth in the marine shipping sector. However, the recent price percent change of -0.57% suggests caution, as market sentiment may be shifting.
Main Takeaways
BW LPG Limited is currently priced at $13.17 per share, which appears undervalued given its modest future outlook. The stock has a beta of 0.3, indicating it experiences less volatility compared to the broader market. This means that while BW LPG's returns might not rise as much as the market during bullish periods, its losses are also likely to be smaller during downturns. Presently, the stock has a slightly negative expected return of -0.2%. To make an informed decision about investing in BW LPG, it's crucial to review its information ratio and analyze the potential upside in relation to its rate of daily change. This will help assess whether the company's past performance might be replicated in the future.
The performance of BW LPG Limited in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence BW LPG's
stock prices. When investing in BW LPG, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, BWLP Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as BW LPG carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of BW LPG earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. BW LPG dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. BWLP one year expected dividend income is about USD1.94 per share.
At this time, BW LPG's
Dividend Payout Ratio is relatively stable compared to the past year. As of 11/30/2024,
Dividend Paid And Capex Coverage Ratio is likely to grow to 1.62, while
Dividends Paid is likely to drop slightly above 210.6
M.
Investing in dividend-paying stocks, such as BW LPG Limited is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in BW LPG must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for BW LPG. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How does BWLP utilize its cash?
At this time, BW LPG's
Begin Period Cash Flow is relatively stable compared to the past year. . To perform a cash flow analysis of BW LPG, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash BW LPG is receiving and how much cash it distributes out in a given period. The BW LPG cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
BW LPG Gross Profit
BW LPG Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing BW LPG previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show BW LPG Gross Profit growth over the last 10 years. Please check BW LPG's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On BW LPG Limited
BW LPG Limited secures a total of 132.26 Million
outstanding shares. BW LPG Limited shows tangible amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company's outstanding shares. Please note that no matter how many assets the company retains, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| 2021 | 2022 | 2023 | 2024 (projected) |
Depreciation And Amortization | 150.2M | 156.4M | 226.1M | 192.6M | Interest Income | 4.5M | 2.5M | 10.4M | 6.4M |
Ownership Breakdown
| Retail Investors31.75% | Insiders35.28% | Institutions32.97% |
| Retail Investors | 31.75 |
| Insiders | 35.28 |
| Institutions | 32.97 |
As Warren Buffett once noted, "Price is what you pay. Value is what you get." This sentiment rings true for BW LPG Limited (NYSE: BWLP), a company that stands out in the marine shipping industry with a solid operating income of $523.7 million and a return on equity of 33%. Despite a challenging environment marked by a net interest income loss of $19.1 million, BW LPG's robust earnings per share of $3.64 and a dividend yield of 22.76% could attract retail investors seeking value. With 35.28% of shares owned by insiders, there's a strong alignment of interests that might inspire confidence among potential investors. As the company navigates its path forward, its current valuation of $2.07 billion and a price-to-book ratio of 1.28X suggest there could be room for growth, especially if market conditions become more favorable..
BW LPG has 93 percent chance to stay above $12.52 in 2 months
BW LPG Limited is demonstrating solid resilience, with a good chance of staying above $12.52 in the coming two months. This stability hints at a modest potential gain of around 3.03%, making it an appealing option for investors seeking steady growth. The company's strong foothold in the liquefied petroleum gas industry helps it navigate market ups and downs effectively. As of November 30th, BW LPG has a Market Risk Adjusted Performance of -0.78, a variance of 6.46, and an Information Ratio of -0.14. Technical analysis of BW LPG offers insights into past data trends, helping investors forecast future price movements.Considering the recent downturn in BW LPG's stock, potential investors might find themselves at a crossroads.
While the current slump could be unsettling, it's important to weigh this against the company's valuation metrics. With a Valuation Real Value of 13.17, there's a suggestion that the stock might be undervalued at its current price, offering a potential upside. However, caution is warranted as the Possible Downside Price is pegged at 9.1, indicating room for further decline. As the fiscal year wraps up in December, keeping an eye on upcoming financial reports could provide clearer insights into the company's trajectory. Balancing these factors, investors should carefully consider their risk tolerance and investment strategy before making a decision..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of BW LPG Limited. Please refer to our
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