About StealthGas Inc.
StealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users internationally. It also provides crude oil and product carriers chartered to oil producers, refiners, and commodities traders. 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 April 1, 2021, it had a fleet of 50 vessels comprising 46 LPG carriers with a total capacity of 436,692 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.
GASS operates in the Transportation, Communications, Electric, Gas, And Sanitary Services | Transportation | led by CEO Harry N. Vafias.
The $204.2M question: What happens when a company this good becomes this expensive?
In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. StealthGas Inc. is one such company.
At $204.2M in market capitalization, StealthGas Inc. (GASS) currently ranks #130 in our quantitative model, with a composite score of 77.7/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives GASS the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 84/100 | 30% | Exceptional |
| Value | 85/100 | 15% | Attractive |
| Momentum | 78/100 | 25% | Accelerating |
| Investment | 61/100 | 10% | Growing |
| Stability | 35/100 | 10% | Volatile |
| Short Interest | 21/100 | 10% | High shorts |
The quality score of 84/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 11.9%
- Net Margin: 41.8%
- Gross Margin: 1.0%
These aren't just good numbers. They're the kind of numbers that make GASS a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like GASS."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. GASS is quality defined.
- Momentum is real. With a momentum score of 78/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 2.9x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
StealthGas Inc. is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, GASS is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 77.7/100 | Rank: #130 of 3,571 stocks
Sector: Industrials
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.