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Is BW LPG (USA Stocks:BWLP) finally getting endorsement from retail investors?

November 30, 2024  By Vlad Skutelnik
Macroaxis Story
Timing is everything, especially when it comes to investing. BW LPG Limited, trading under the ticker BWLP on the NYSE, is catching the eye of retail investors as it navigates the dynamic landscape of the oil and gas sector. With a robust net income of $470 million and a focus on oil and gas storage and transportation, the company presents a compelling case for those looking to capitalize on its strategic positioning. As the fiscal year draws to a close in December, investors are keenly watching how BW LPG will leverage its strengths to potentially enhance shareholder value. Currently, BW LPG's Return on Invested Capital (ROIC) remains steady compared to last year. By November 30, 2024, the company's inventory turnover is expected to increase to 16.31, while the free cash flow yield might decrease to 0.13. As interest in the oil, gas, and consumable fuels sector grows, it's worth examining BW LPG Limited more closely. I'll delve into the stock's performance and the latest sentiment from retail investors. Additionally, I'll highlight key indicators that BW LPG investors should keep an eye on this December.
Published 15 hours ago
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Reviewed by Rifka Kats

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.

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.

BW LPG Balance Sheet Drivers

Understanding current and past BW LPG financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. At this time, BW LPG's Asset Turnover is relatively stable compared to the past year.
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 Amortization150.2M156.4M226.1M192.6M
Interest Income4.5M2.5M10.4M6.4M
Depreciation And AmortizationInterest Income

Ownership Breakdown

Retail Investors
31.75%		Insiders
35.28%		Institutions
32.97%
Retail Investors31.75
Insiders35.28
Institutions32.97
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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Editorial Staff

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 Terms of Use for any information regarding our disclosure principles.

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