GASSStealthGas Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.0×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Margin-driven, fat margins on slower asset turns. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GASS?
StealthGas Inc. earns 7.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.6 points below what the capital costs: growth destroys value
- Operating margin
- 32%
Operating margin · Marine Shipping median 26% · fiscal year to FY2025
- Cash conversion
- 1.96×
Cash conversion · 2.19× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.6%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 16% |
| FY2021 | −21% |
| FY2022 | 21% |
| FY2023 | 32% |
| FY2024 | 36% |
| FY2025 | 32% |
Details›
- Operating marginfiscal year to FY2025
- 32%
- Net marginfiscal year to FY2025
- 35%
- Free cash flow margin
- 49%
- Revenue, trailing twelve months
- $173M
- Free cash flow, trailing twelve months
- $85M
- Net income, trailing twelve months
- $61M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.