StealthGas Reports Q1 Revenue of $42mln, Eliminates Debt and Buys Back Shares

StealthGas has reported Q1 revenue of $42mln, up from $41.6mln YoY, and eliminated financial risk by becoming net debt-free. The company has repurchased $21.2mln of shares since June 2023 and expects market conditions to normalize. Analysts predict an average target price of $10, implying an 82.48% upside from the current price. The estimated GF Value for StealthGas is $5.39, suggesting a 1.64% downside from the current price.

StealthGas Inc. (SGAS) has reported robust financial performance for the first quarter of 2025, with revenue of $42 million, a 1.2% increase year-over-year (YoY) from $41.6 million in Q1 2024 [1]. The company has significantly reduced its debt by $54 million this year, bringing the current debt level to $30 million, effectively making it net debt-free. This financial maneuver positions StealthGas as a more resilient player in the market.

StealthGas has maintained a high period coverage of 70% of fleet days for 2025, securing over $165 million in future revenues. The company has been actively engaging in share repurchases, spending approximately $1.8 million to buy back shares, which is considered a sound use of liquidity. Additionally, StealthGas has a strategic focus on fleet diversification and renewal, with recent acquisitions and sales leading to a net increase in fleet size.

However, the company faced some challenges during the quarter. Adjusted net income for Q1 2025 was $16.1 million, which is lower than the first quarter of 2024 due to increased expenses. The spot market weakness led to a decrease in TCE or net revenues by 4.6%, impacting overall financial performance. Operating expenses increased by 17% due to higher crew costs and maintenance fees, affecting profitability. The company faced an impairment of $0.5 million for the vessel Gas Cerberus, impacting financial results. Interest costs, although reduced, still impacted the financials, with a net income decrease of 20% compared to the same quarter last year.

Analysts predict an average target price of $10, implying an 82.48% upside from the current price. The estimated GF Value for StealthGas is $5.39, suggesting a 1.64% downside from the current price. The company expects market conditions to normalize, which could further boost its financial performance.

References:
[1] https://finance.yahoo.com/news/stealthgas-inc-gass-q1-2025-070314274.html
[2] https://uk.finance.yahoo.com/news/nvidia-posts-44-1-billion-112602504.html