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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 37.1GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
44.6%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, StealthGas Inc. (GASS) receives a "Hold" rating with a composite score of 61.0/100, ranked #198 out of 4446 stocks. Key factor scores: Quality 37/100, Value 91/100, Momentum 81/100. This is quantitative analysis only — not investment advice.
StealthGas Inc. (GASS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does StealthGas Inc. Do?
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. StealthGas Inc. (GASS) is classified as a small-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Harry N. Vafias. With a market capitalization of $348M, GASS is one of the notable companies in the Industrials sector.
StealthGas Inc. (GASS) Stock Rating — Hold (April 2026)
As of April 2026, StealthGas Inc. receives a Hold rating with a composite score of 61.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.GASS ranks #198 out of 4,446 stocks in our coverage universe. Within the Industrials sector, StealthGas Inc. ranks #35 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
GASS Stock Price and 52-Week Range
StealthGas Inc. (GASS) currently trades at $9.31. The stock lost $0.17 (1.8%) in the most recent trading session. The 52-week high for GASS is $10.52, which means the stock is currently trading -11.5% from its annual peak. The 52-week low is $4.90, putting the stock 90.0% above its annual trough. Recent trading volume was 54K shares, suggesting relatively thin trading activity.
Is GASS Overvalued or Undervalued? — Valuation Analysis
StealthGas Inc. (GASS) carries a value factor score of 91/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 4.96x, compared to the Industrials sector average of 28.33x — a discount of 82%. The price-to-book ratio stands at 0.56x, versus the sector average of 2.23x. The price-to-sales ratio is 0.53x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, GASS trades at 1.03x EV/EBITDA, versus 5.70x for the sector.
Based on these multiples, StealthGas Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
StealthGas Inc. Profitability — ROE, Margins, and Quality Score
StealthGas Inc. (GASS) earns a quality factor score of 37/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 44.6%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 38.2% versus the sector average of 3.3%.
On a margin basis, StealthGas Inc. reports gross margins of 100.0%, compared to 35.8% for the sector. The operating margin is 35.8% (sector: 6.2%). Net profit margin stands at 41.8%, versus 3.9% for the average Industrials stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
GASS Debt, Balance Sheet, and Financial Health
StealthGas Inc. has a debt-to-equity ratio of 14.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.10x, indicating strong short-term liquidity. Total debt on the balance sheet is $85M. Cash and equivalents stand at $81M.
GASS has a beta of 0.62, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for StealthGas Inc. is 69/100, reflecting average volatility within the normal range for its sector.
StealthGas Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, StealthGas Inc. reported revenue of $167M and earnings per share (EPS) of $1.91. Net income for the quarter was $70M. Gross margin was 100.0%. Operating income came in at $60M.
In FY 2024, StealthGas Inc. reported revenue of $167M and earnings per share (EPS) of $1.91. Net income for the quarter was $70M. Gross margin was 100.0%. Revenue grew 16.5% year-over-year compared to FY 2023. Operating income came in at $60M.
In FY 2023, StealthGas Inc. reported revenue of $144M and earnings per share (EPS) of $1.38. Net income for the quarter was $52M. Gross margin was 100.0%. Revenue grew -6.0% year-over-year compared to FY 2022. Operating income came in at $46M.
In FY 2022, StealthGas Inc. reported revenue of $153M and earnings per share (EPS) of $0.90. Net income for the quarter was $34M. Gross margin was 100.0%. Revenue grew 1.7% year-over-year compared to FY 2021. Operating income came in at $33M.
Over the past 8 quarters, StealthGas Inc. has demonstrated a growth trajectory, with revenue expanding from $164M to $167M. Investors analyzing GASS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
GASS Dividend Yield and Income Analysis
StealthGas Inc. (GASS) does not currently pay a dividend. This is common among smaller companies in the Transportation industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
GASS Momentum and Technical Analysis Profile
StealthGas Inc. (GASS) has a momentum factor score of 81/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 43/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 48/100 reflects moderate short selling activity.
GASS vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing GASS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full GASS vs S&P 500 (SPY) comparison to assess how StealthGas Inc. stacks up against the broader market across all factor dimensions.
GASS Next Earnings Date
No upcoming earnings date has been announced for StealthGas Inc. (GASS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy GASS? — Investment Thesis Summary
StealthGas Inc. presents a balanced picture with arguments on both sides. The quality score of 37/100 flags below-average profitability. The value score of 91/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 81/100, suggesting the trend favors buyers. Low volatility (stability score 69/100) reduces downside risk.
In summary, StealthGas Inc. (GASS) earns a Hold rating with a composite score of 61.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on GASS stock.
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Institutional Research Dossier
StealthGas Inc. (GASS) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Buy rating on StealthGas Inc. (GASS), driven primarily by its compelling valuation and strong recent profitability. The company's current multiples, particularly its P/E and EV/EBITDA ratios, are significantly below sector averages, suggesting undervaluation. While acknowledging the cyclical nature of the shipping industry and StealthGas's historical volatility, we believe the current market conditions, coupled with the company's efficient operations and strong balance sheet, present an attractive investment opportunity.
The most critical takeaway is the disconnect between StealthGas's current profitability and its valuation. The company's high ROE and impressive margins, combined with a low debt-to-equity ratio, indicate a well-managed and financially sound operation. If StealthGas can sustain its current performance, the market is likely to re-rate the stock higher, providing substantial upside for investors. However, the sustainability of these high margins in a cyclical industry remains a key risk to monitor.
Business Strategy & Overview
StealthGas Inc. operates in the seaborne transportation sector, focusing on the carriage of liquefied petroleum gas (LPG) and, to a lesser extent, crude oil and refined petroleum products. The company generates revenue primarily through time charter agreements, where vessels are leased to customers for a specified period at a fixed daily rate. This strategy provides a relatively stable revenue stream compared to spot market rates, although it can also limit upside during periods of high demand. As of April 1, 2021, StealthGas operated a fleet of 50 vessels, with the majority consisting of LPG carriers. This specialization in LPG transportation differentiates StealthGas from more diversified shipping companies.
The company's strategic positioning is centered on maintaining a modern and well-maintained fleet, which allows it to command premium charter rates. StealthGas also focuses on operational efficiency to minimize costs and maximize profitability. The company's geographic focus is international, serving LPG producers and users across various regions. This global presence helps to mitigate regional demand fluctuations. The company's diversification into crude oil and product carriers, while smaller in scale, provides some diversification and optionality.
StealthGas operates in a highly competitive industry, facing competition from other LPG carrier owners and operators. The industry is also subject to cyclical fluctuations in demand and supply, which can significantly impact charter rates and profitability. The demand for LPG transportation is driven by factors such as global energy demand, LPG production levels, and infrastructure development. The supply of LPG carriers is influenced by new vessel construction and scrapping rates. StealthGas must effectively manage its fleet and chartering strategy to navigate these cyclical fluctuations.
The company's product pipeline, in the context of a shipping company, refers to its fleet renewal and expansion plans. While specific details on future vessel acquisitions are not provided, StealthGas's management has historically demonstrated a willingness to invest in new vessels when market conditions are favorable. The company's ability to secure financing for these investments is crucial to its long-term growth prospects. The company's focus on maintaining a young fleet is a key differentiator and supports its ability to secure favorable charter rates.
Execution Benchmarks audit
Gross Margin
Core pricing power
100.0%
Sector: 35.8%
+179% VS SCTR
Economic Moat Analysis
StealthGas's economic moat is, at best, narrow. The shipping industry is highly competitive, and barriers to entry are relatively low. While StealthGas has established a presence in the LPG transportation market, it lacks the scale and brand recognition to command significant pricing power. The company's fleet of 50 vessels is relatively small compared to some of its larger competitors, limiting its ability to influence market dynamics.
Network effects are not a significant factor in the LPG transportation market. Customers primarily choose carriers based on price, availability, and reliability, rather than the size or connectivity of the carrier's network. Switching costs are also relatively low, as customers can easily switch between different carriers depending on market conditions. This lack of switching costs further limits StealthGas's ability to retain customers and maintain pricing power.
Intangible assets, such as patents or proprietary technology, are not a significant source of competitive advantage in the shipping industry. While StealthGas may have some operational expertise and relationships with customers, these are not unique or difficult to replicate. The company's reputation for reliability and safety is important, but it is not a sustainable competitive advantage in the long run.
Cost advantages are a more relevant factor in the shipping industry. StealthGas's ability to operate its fleet efficiently and minimize costs can give it a competitive edge. However, these cost advantages are likely to be modest and can be eroded by fluctuations in fuel prices and other operating expenses. The company's focus on maintaining a young fleet can also contribute to cost advantages, as newer vessels tend to be more fuel-efficient and require less maintenance.
Efficient scale is not a significant source of competitive advantage for StealthGas. While larger shipping companies may benefit from economies of scale, StealthGas's fleet size is not large enough to create a significant cost advantage. The company's focus on specialization in LPG transportation may provide some niche advantages, but it also limits its ability to diversify and capture broader market opportunities. Overall, StealthGas's economic moat is limited by the competitive nature of the shipping industry and the lack of significant barriers to entry.
Financial Health & Profitability
StealthGas's financial health presents a mixed picture. The company's recent profitability has been strong, with a net income of $69.86 million in the latest fiscal year, a significant improvement from the losses incurred in previous years. This profitability is reflected in the company's high ROE of 44.6%, which is substantially higher than the sector average of 9.2%. The company's gross margin of 100% indicates that its revenue is essentially charter revenue less voyage expenses, and its operating margin of 35.8% is also significantly higher than the sector average of 6.2%.
However, the company's historical revenue growth has been inconsistent. While revenue increased in the latest fiscal year, it has fluctuated in previous years. The company's free cash flow has also been volatile, ranging from negative values in some years to substantial positive values in others. This volatility reflects the cyclical nature of the shipping industry and the impact of capital expenditures on fleet maintenance and expansion.
StealthGas's balance sheet appears to be relatively healthy. The company has a significant amount of cash on hand, totaling $80.65 million, which provides a buffer against potential downturns in the shipping market. The company's total debt is $84.89 million, resulting in a low debt-to-equity ratio of 14.00, significantly lower than the sector average of 70.00. This low leverage provides StealthGas with financial flexibility to pursue growth opportunities and weather economic downturns.
Analyzing the quarterly financial history reveals a clear trend of improving profitability in recent years. The company's net income has increased steadily from a loss of $35.12 million in FY2021 to a profit of $69.86 million in FY2024. This improvement is driven by a combination of increased revenue and improved operating efficiency. The company's free cash flow has also been strong in recent years, although it has been more volatile than net income.
The company's consistent 100% gross margin suggests a very lean operating model, where direct voyage costs are the primary expense. This is both a strength and a potential weakness. It highlights efficiency but also indicates limited room for further cost optimization on the revenue side. The operating margin, while strong, is more variable, reflecting fluctuations in administrative and other operating expenses.
Valuation Assessment
StealthGas's valuation is compelling based on several key metrics. The company's P/E ratio of 4.8x is significantly below the sector average of 27.7x, suggesting that the stock is undervalued relative to its earnings. Similarly, the company's EV/EBITDA ratio of 1.0x is substantially lower than the sector average of 5.7x, further supporting the undervaluation thesis. These low multiples indicate that the market is not fully recognizing the company's recent profitability and strong financial performance.
However, it is important to consider the cyclical nature of the shipping industry when assessing StealthGas's valuation. The company's earnings are likely to fluctuate depending on market conditions, and the current high profitability may not be sustainable in the long run. Therefore, it is prudent to apply a margin of safety when valuing the stock.
A discounted cash flow (DCF) analysis would be helpful in determining the intrinsic value of StealthGas, but the lack of detailed financial projections makes it difficult to perform an accurate DCF valuation. However, based on the company's current free cash flow and assuming a conservative growth rate, the stock appears to be undervalued. The company's strong balance sheet and low debt-to-equity ratio also support a higher valuation.
Compared to its historical valuation, StealthGas's current multiples are also low. The company's P/E ratio has historically been higher, reflecting periods of stronger earnings growth and investor optimism. The current low multiples may reflect investor concerns about the sustainability of the company's recent profitability and the cyclical nature of the shipping industry.
While a precise fair value estimate is challenging without more detailed projections, the significant discount to sector averages and historical multiples suggests that StealthGas is currently undervalued. The market appears to be overly pessimistic about the company's future prospects, creating an opportunity for investors to capitalize on the undervaluation. However, investors should be aware of the risks associated with the shipping industry and the potential for earnings volatility.
Risk & Uncertainty
The primary risk facing StealthGas is the cyclical nature of the shipping industry. Charter rates and vessel values are subject to significant fluctuations depending on supply and demand dynamics. A downturn in the global economy or a surge in new vessel construction could lead to a decline in charter rates and a decrease in StealthGas's profitability. The company's reliance on time charter agreements provides some stability, but it does not eliminate the risk of market fluctuations.
Competition is another significant risk. The LPG transportation market is highly competitive, with numerous players vying for market share. StealthGas faces competition from larger, more diversified shipping companies that may have greater financial resources and economies of scale. The company must effectively manage its fleet and chartering strategy to maintain its competitive position.
Regulatory risks are also a concern. The shipping industry is subject to a variety of environmental and safety regulations, which can increase operating costs and limit vessel utilization. Changes in regulations could require StealthGas to invest in new equipment or modify its operations, which could negatively impact its profitability. The company must comply with all applicable regulations to avoid penalties and maintain its reputation.
Concentration risk is present, although not explicitly quantified in the provided data. If StealthGas relies heavily on a small number of key customers, the loss of one or more of these customers could significantly impact its revenue and profitability. The company must diversify its customer base to mitigate this risk.
While the company's debt-to-equity ratio is low, leverage can still pose a risk. If charter rates decline significantly, StealthGas may struggle to meet its debt obligations, which could lead to financial distress. The company must carefully manage its debt levels and maintain sufficient liquidity to weather economic downturns.
Bulls Say / Bears Say
The Bull Case
BULL VIEWStealthGas's current P/E and EV/EBITDA multiples are absurdly low compared to its sector, indicating significant undervaluation and potential for multiple expansion as the market recognizes its profitability.
BULL VIEWThe company's strong balance sheet, characterized by high cash reserves and low debt, provides a safety net and allows for strategic acquisitions or shareholder returns, further enhancing its investment appeal.
BULL VIEWThe increasing global demand for LPG, driven by energy transitions and industrial growth, will continue to support strong charter rates and profitability for StealthGas, ensuring sustained financial performance.
The Bear Case
BEAR VIEWThe shipping industry is notoriously cyclical, and StealthGas's recent profitability is likely a temporary peak, with charter rates inevitably declining and eroding earnings in the near future.
BEAR VIEWStealthGas lacks a significant economic moat, making it vulnerable to competition from larger, more diversified shipping companies that can undercut its charter rates and steal market share.
BEAR VIEWThe company's volatile free cash flow history and inconsistent revenue growth raise concerns about its long-term sustainability and ability to generate consistent returns for investors.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score GASS and 4,400+ other equities.
StealthGas Inc. exhibits a 58% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
38.2%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
100.0%
Sector: 35.8%
Operating Margin
Core business profitability
35.8%
Sector: 6.2%
Net Margin
Bottom-line profitability
41.8%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
