StealthGas Inc. (NASDAQ:GASS): A Hidden Gem with the Lowest P/E Ratios

In the dynamic world of NASDAQ-listed stocks, StealthGas Inc. (NASDAQ:GASS) stands out as a compelling investment opportunity, particularly for those seeking undervalued companies with strong financial fundamentals. With a current price-to-earnings (P/E) ratio of 3.1, StealthGas is trading at a significant discount compared to its historical averages and peers, making it one of the best NASDAQ stocks with the lowest P/E ratios.



A Historical Perspective on StealthGas's P/E Ratio

StealthGas's current P/E ratio of 3.1 is a stark contrast to its historical averages. Over the past ten years, the company's average P/E ratio has been 21.03, meaning the current ratio is 85% lower than the historical average. This significant drop suggests that the market is currently undervaluing StealthGas's earnings potential.

Looking back at the last decade, StealthGas's P/E ratio has seen considerable volatility. The highest quarterly P/E ratio was recorded in the June 2015 quarter at 75, while the lowest point was in the March 2023 quarter at 2.29. This volatility indicates that the market's perception of StealthGas's earnings potential has fluctuated significantly over time.

Comparing StealthGas to Its Peers

When compared to its peers, StealthGas's P/E ratio is also relatively low. For instance, Capital Clean Energy Carriers Corp. (CCEC) has a P/E ratio of 140.79, Teekay Corp (TK) has a P/E ratio of 4.68, and Scorpio Tankers Inc (STNG) has a P/E ratio of 3.05. StealthGas's P/E ratio of 3.06 is lower than CCEC and TK but higher than STNG. The peer average P/E ratio is 3.7, which is higher than StealthGas's current P/E ratio.

This comparison suggests that StealthGas is currently trading at a significant discount relative to its peers. This could indicate that the market perceives the company as undervalued, potentially due to factors such as strong financial health, high profitability, and a plan to go debt-free within 12 months.

Factors Contributing to StealthGas's Low P/E Ratio

Several factors contribute to StealthGas's low P/E ratio, which also influence the company's financial health and future growth prospects. The current P/E ratio for StealthGas stock as of March 19, 2025, is 3.1, which is 85% lower than the 10-year historical average of 21.03. This low P/E ratio is primarily due to the company's high earnings per share (EPS) relative to its stock price. As of March 19, 2025, StealthGas's share price is $5.92, and the company's earnings per share for the trailing twelve months (TTM) ending December 2024 is $1.91. Therefore, StealthGas's P/E ratio for today is 3.1. This is calculated based on the TTM EPS of $1.91 and the stock price of $5.92 per share. The P/E ratio marks a decrease of 17% from its last 4 quarters average of 3.7.

The low P/E ratio indicates that the market is valuing StealthGas's earnings at a relatively low price, which could be due to several reasons. One possible reason is the company's historical performance. Looking back at the last ten years, GASS's P/E ratio peaked in the June 2015 quarter at 75, when the price was $6.75 and the EPS was $0.09. The lowest point was in the March 2023 quarter, when it reached 2.29 with a price of $2.61 and an EPS of $1.14. This volatility in the P/E ratio suggests that the market's perception of the company's earnings potential has fluctuated significantly over time.

Another factor contributing to the low P/E ratio could be the company's financial performance. In 2024, StealthGas's revenue was $167.26 million, an increase of 16.54% compared to the previous year's $143.53 million. Earnings were $69.86 million, an increase of 36.65%. This strong financial performance, coupled with the company's debt reduction and stock repurchase program, indicates strong financial health and potential stock price appreciation. The company announced a new stock repurchase program, which could further support the stock price and reduce the P/E ratio.

However, the low P/E ratio could also be a reflection of the market's concerns about the company's future growth prospects. Earnings are forecast to decline by an average of 11% per year for the next 3 years. This could be due to various factors, such as changes in the LPG market, increased competition, or regulatory challenges. The company's ability to navigate these challenges and maintain its strong financial performance will be crucial for its future growth prospects.

Conclusion

In conclusion, StealthGas Inc. (NASDAQ:GASS) is a compelling investment opportunity with a low P/E ratio that suggests undervaluation. The company's strong financial performance, high profitability, and plan to go debt-free within 12 months make it an attractive option for investors seeking undervalued stocks. However, investors should also consider the company's future growth prospects and the risks associated with investing in the company. With a current P/E ratio of 3.1, StealthGas is one of the best NASDAQ stocks with the lowest P/E ratios, making it a hidden gem in the marine shipping industry.