OB:BWLPG

Stock Analysis Report

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Market Cap

kr7.5b

Last Updated

2021/07/22 22:09 UTC

Data Sources

Company Financials +

Executive Summary

BW LPG Limited, an investment holding company, engages in shipowning and chartering activities worldwide. More Details


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has BWG's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BWLPG is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BWLPG's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

BWLPG

-0.3%

NO Oil and Gas

-0.3%

NO Market


1 Year Return

42.8%

BWLPG

23.0%

NO Oil and Gas

29.6%

NO Market

Return vs Industry: BWLPG exceeded the Norwegian Oil and Gas industry which returned 28.7% over the past year.

Return vs Market: BWLPG exceeded the Norwegian Market which returned 29.5% over the past year.


Shareholder returns

BWLPGIndustryMarket
7 Day-0.9%-0.3%-0.3%
30 Day-8.9%-5.5%-0.3%
90 Day-13.8%4.5%2.8%
1 Year64.9%42.8%26.8%23.0%34.4%29.6%
3 Year91.9%37.7%-5.7%-17.6%18.6%5.1%
5 Year149.0%73.4%68.7%35.0%77.4%44.4%

Long-Term Price Volatility Vs. Market

How volatile is BWG's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BWG undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BWLPG (NOK52.05) is trading below our estimate of fair value (NOK151.95)

Significantly Below Fair Value: BWLPG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BWLPG is good value based on its PE Ratio (3.5x) compared to the Norwegian Oil and Gas industry average (4.5x).

PE vs Market: BWLPG is good value based on its PE Ratio (3.5x) compared to the Norwegian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: BWLPG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BWLPG is good value based on its PB Ratio (0.6x) compared to the NO Oil and Gas industry average (0.9x).


Future Growth

How is BWG forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWLPG's earnings are forecast to decline over the next 3 years (-18.9% per year).

Earnings vs Market: BWLPG's earnings are forecast to decline over the next 3 years (-18.9% per year).

High Growth Earnings: BWLPG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BWLPG's revenue is expected to decline over the next 3 years (-11.3% per year).

High Growth Revenue: BWLPG's revenue is forecast to decline over the next 3 years (-11.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWLPG's Return on Equity is forecast to be low in 3 years time (10%).


Past Performance

How has BWG performed over the past 5 years?

30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWLPG has high quality earnings.

Growing Profit Margin: BWLPG's current net profit margins (30.6%) are lower than last year (39.8%).


Past Earnings Growth Analysis

Earnings Trend: BWLPG's earnings have grown significantly by 30% per year over the past 5 years.

Accelerating Growth: BWLPG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BWLPG had negative earnings growth (-38%) over the past year, making it difficult to compare to the Oil and Gas industry average (8.3%).


Return on Equity

High ROE: BWLPG's Return on Equity (18%) is considered low.


Financial Health

How is BWG's financial position?


Financial Position Analysis

Short Term Liabilities: BWLPG's short term assets ($551.0M) exceed its short term liabilities ($251.2M).

Long Term Liabilities: BWLPG's short term assets ($551.0M) do not cover its long term liabilities ($860.4M).


Debt to Equity History and Analysis

Debt Level: BWLPG's debt to equity ratio (63.4%) is considered high.

Reducing Debt: BWLPG's debt to equity ratio has reduced from 65.3% to 63.4% over the past 5 years.

Debt Coverage: BWLPG's debt is well covered by operating cash flow (49%).

Interest Coverage: BWLPG's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Dividend

What is BWG current dividend yield, its reliability and sustainability?

14.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BWLPG's dividend (14.3%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.03%).

High Dividend: BWLPG's dividend (14.3%) is in the top 25% of dividend payers in the Norwegian market (5.32%)


Stability and Growth of Payments

Stable Dividend: BWLPG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BWLPG's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.3%), BWLPG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BWLPG's dividends in 3 years are forecast to be covered by earnings (51.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Anders Onarheim (62 yo)

1.5yrs

Tenure

Mr. Anders Onarheim serves as Chief Executive Officer at BW LPG Limited since May 20, 2020. He served as Interim Chief Executive Officer at BW LPG Limited since January 01, 2020 until May 20, 2020. Mr. Ona...


Leadership Team

Experienced Management: BWLPG's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: BWLPG's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.


Top Shareholders

Company Information

BW LPG Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BW LPG Limited
  • Ticker: BWLPG
  • Exchange: OB
  • Founded: 1935
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: kr7.501b
  • Shares outstanding: 144.11m
  • Website: https://www.bwlpg.com

Number of Employees


Location

  • BW LPG Limited
  • 10 Pasir Panjang Road
  • No. 17-02, Mapletree Business City
  • Singapore
  • 117438
  • Singapore

Listings


Biography

BW LPG Limited, an investment holding company, engages in shipowning and chartering activities worldwide. It operates through three segments: Very Large Gas Carriers (VLGCs), Large Gas Carriers (LGCs), and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/22 22:09
End of Day Share Price2021/07/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.