Dorian LPG (LPG) — 格雷厄姆筛选：5/7。市盈率11.35倍，股息率7.34%，连续5年经营现金流大于净利润。CEO两次买入。非投资建议。

Dorian LPG Ltd. (LPG) — Financial Analysis Report

For the fiscal year ended 2026-03-31

Executive Summary

Dorian LPG delivered a strong financial recovery in fiscal year 2026, with total revenues rebounding 36.3% to USD 481.5 million and net income more than doubling to USD 193.7 million, yielding a net profit margin of 40.2%. The recovery follows a sharp FY2025 cyclical trough and reflects renewed strength in VLGC freight markets, with approximately 99% of revenues channeled through the Helios LPG Pool. Even at the FY2025 cycle low, the company maintained a net profit margin of 25.5%, underscoring the structural efficiency of its ECO-class, scrubber-equipped fleet.

Operating cash flow of USD 210.1 million exceeded net income of USD 193.7 million in FY2026, confirming high-quality, cash-backed earnings with no apparent accrual distortions. The balance sheet remains well-capitalized, with total assets of USD 1.87 billion, stockholders' equity of USD 1.14 billion, and a current ratio of 2.67x — comfortably above the 2.0x liquidity threshold. Total liabilities have stabilized at USD 732.7 million while equity continues to grow, reflecting a deliberate delevering trend over the past three fiscal years.

Dorian paid total dividends of USD 2.45 per share in FY2026, generating a dividend yield of 7.34% against a closing price of USD 33.36 — more than double the market median yield of 3.3%. The trailing P/E ratio of 11.35x represents a meaningful discount to the Energy sector median of 16.3x, while the Graham-adjusted moderate P/E of 8.23x and a P/E × P/B product of 21.91 (below Graham's 22.5 ceiling) indicate that the stock trades at a genuinely modest valuation relative to both earnings and net asset value.

Key forward-looking risks include VLGC freight rate cyclicality, single-segment concentration without vessel-type diversification, material customer concentration within the Helios Pool, and a long-term debt load of USD 563.9 million that exceeds working capital. Dorian LPG scores 5 out of 7 on Benjamin Graham's defensive investment criteria, with failures on long-term debt relative to working capital and the 20-year dividend record requirement — both structurally attributable to the company's capital-intensive business model and its 2013 founding date rather than signs of fundamental financial weakness.

Company Overview

Dorian LPG Ltd. is a Marshall Islands-incorporated, U.S.-headquartered shipping company specializing exclusively in the ownership and operation of Very Large Gas Carriers (VLGCs) engaged in the international seaborne transportation of liquefied petroleum gas. Founded in 2013, the company has roots in LPG shipping management dating back to 2002. As of late May 2026, Dorian operates a fleet of twenty-seven VLGCs — comprising owned and bareboat-chartered vessels alongside six time chartered-in units — with an aggregate carrying capacity of approximately 2.3 million cubic meters and an average fleet age of 9.6 years.

The fleet is predominantly composed of fuel-efficient 84,000 cbm ECO-design vessels, with a growing capability to transport ammonia cargoes, reflecting the company's measured pivot toward future energy carriers. A significant portion of the fleet is equipped with scrubbers, enabling the use of less refined, lower-cost fuel and providing a competitive earnings advantage in favorable fuel spread environments. Dorian also operates dual-fuel vessels, further reducing its carbon footprint and positioning the company favorably relative to tightening environmental regulations.

A cornerstone of the company's commercial strategy is its 50/50 joint venture with MOL Energia Pte. Ltd. — the Helios LPG Pool. As of May 2026, the Helios Pool manages thirty-one VLGCs and serves as the primary commercial vehicle for Dorian's fleet, generating approximately 99% of the company's revenues in fiscal year 2026. The pool allows participants to benefit from broader market coverage, commercial scale, and optimized vessel deployment across spot, time charter, and contract-of-affreightment arrangements.

Dorian's customer base is blue-chip, encompassing global energy majors such as ExxonMobil, Chevron, Shell, and Equinor, as well as large commodity traders including Glencore, Gunvor, and Vitol, and major LPG importers across Asia. The company competes in a fragmented global market with roughly 129 VLGC owners, with primary competitors being BW LPG, NYK Line, and Petredec. Competitive differentiation is achieved through a modern, ECO-class fleet, in-house technical and commercial management, and strong customer relationships built over two decades. Dorian employs approximately 90 shore-based staff across the United States, Greece, and Denmark, and around 512 seafarers on its technically managed vessels.

Key Market Indicators

Market Capitalization

Dorian LPG's market capitalization stands at approximately USD 2.20 billion, placing the company firmly in the Mid Cap category (USD 2 billion – USD 10 billion).

Sector & Industry

• Sector: Energy
• Industry: Oil & Gas Midstream

Price-to-Earnings Ratio

Dorian LPG's trailing price-to-earnings ratio stands at 11.35x. The median P/E ratio for Energy sector stocks on US exchanges (NYSE and NASDAQ) is 16.3x. At a meaningful discount to the sector median, Dorian's stock appears undervalued relative to its sector peers, suggesting the market may be pricing in cyclical risk or sector-specific headwinds rather than reflecting the company's current earnings power.

Dividends

Calculation of Dividend Yield

During fiscal year 2026 (ended March 31, 2026), Dorian LPG paid total dividends of USD 2.45 per share, comprising four quarterly payments of USD 0.50, USD 0.60, USD 0.65, and USD 0.70. The closing stock price used for yield calculation was USD 33.36.

Dividend Yield = (USD 2.45 / USD 33.36) × 100 = 7.34%

This is substantially above the median dividend yield for US-listed stocks (NYSE and NASDAQ) of 3.3%, indicating that Dorian LPG is a notably high-yield income stock relative to the broader market, a characteristic commonly associated with shipping companies that distribute a significant share of cyclical earnings.

Five-Year Dividend Dynamics

|Fiscal Year|Total Dividends (USD)|Close Price (USD)|Dividend Yield (%)|

|:-|:-|:-|:-|

|2022|2.00|8.45|23.66|

|2023|5.50|15.87|34.66|

|2024|4.00|35.27|11.34|

|2025|3.70|20.46|18.08|

|2026|2.45|33.36|7.34|

Over the five-year period, Dorian LPG's dividend policy has reflected the highly cyclical nature of the VLGC shipping market. Dividend payments peaked at USD 5.50 per share in fiscal 2023, coinciding with the surge in LPG freight rates, before moderating to USD 4.00 in 2024 and declining further to USD 2.45 in 2026. The yield, while seemingly contracting from the extraordinary highs of 34.66% in 2023, is partly a function of the significant stock price appreciation from USD 8.45 in 2022 to USD 33.36 in 2026. In absolute terms, total dividends paid per share have declined from their peak, consistent with management's policy of distributing profits in a variable, earnings-linked fashion rather than maintaining a fixed payout commitment. Despite the reduction, the current yield of 7.34% remains more than double the market median, underscoring the company's continued commitment to returning capital to shareholders.

Management Discussion

Revenue & Growth

• Approximately 99% of fiscal year 2026 revenues were generated through the Helios Pool as net pool revenues, reflecting near-total consolidation of commercial activity within the joint venture framework.
• Management pursues a balanced chartering strategy — blending multi-year time charters, shorter-term time charters, spot market voyages, and COAs — to maximize fleet availability and capture earnings upside while mitigating freight rate volatility.

Profitability & Costs

• Revenue performance is primarily driven by fleet size, vessel availability, and prevailing daily charter rates, all of which are sensitive to LPG supply-demand dynamics, drydocking schedules, and vessel positioning.
• Vessel operating expenses are expected to rise over time due to fleet aging, higher crew costs, insurance premiums, and drydocking frequency; the scrubber-equipped fleet partially offsets cost pressures through fuel savings when low-sulfur fuel spreads are favorable.

Risks & Challenges

• The company operates exclusively in the VLGC segment, making it highly exposed to sector-specific downturns without the cushion of diversification across vessel types or commodities.
• Customer concentration risk remains material — a significant proportion of revenues flow through a limited number of Helios Pool charterers, and the failure of key counterparties could have a meaningful adverse impact on financial results.

Capital Allocation & Balance Sheet

• Post fiscal year-end, management prepaid USD 16.5 million of debt and completed the sale of a 2015-built VLGC for net proceeds of approximately USD 81.9 million, demonstrating active portfolio optimization and disciplined capital recycling.
• An irregular cash dividend of USD 1.00 per share (totaling approximately USD 42.8 million) was declared in May 2026, reinforcing the board's commitment to returning surplus capital to shareholders when balance sheet conditions permit.

Outlook & Forward-Looking Statements

• The company intends to continue deploying its fleet through the Helios Pool, leveraging the pool's commercial scale, while selectively pursuing time charter opportunities with profit-sharing components to balance earnings visibility against market upside.
• Planned fleet enhancements — including dual-fuel capability and ammonia-ready vessel conversions — position Dorian to benefit from long-term energy transition trends and evolving cargo demand, though near-term market conditions remain subject to freight rate cyclicality and macroeconomic uncertainty.

Financial Indicators

Total Revenue

|Date|Total Revenue (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|274,221,448|—|

|2023-03-31|389,749,215|42.1|

|2024-03-31|560,717,436|43.9|

|2025-03-31|353,341,476|\-37.0|

|2026-03-31|481,511,242|36.3|

Net Income

|Date|Net Income (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|71,935,018|—|

|2023-03-31|172,443,930|139.7|

|2024-03-31|307,446,913|78.3|

|2025-03-31|90,170,480|\-70.7|

|2026-03-31|193,665,933|114.8|

Free Cash Flow

|Date|Free Cash Flow (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|95,509,257|—|

|2023-03-31|155,274,987|62.6|

|2024-03-31|355,593,715|129.0|

|2025-03-31|154,064,687|\-56.7|

|2026-03-31|116,299,650|\-24.5|

Dorian LPG's financial performance over the five-year period to March 2026 is a textbook illustration of cyclical shipping economics. Total revenues climbed sharply from USD 274 million in FY2022 to a peak of USD 561 million in FY2024, driven by exceptionally elevated VLGC freight rates. Net income followed an even more pronounced trajectory, surging to USD 307 million in FY2024 — a margin-expansion story amplified by operational leverage. The subsequent FY2025 correction was sharp: revenues fell 37% to USD 353 million and net income collapsed by 71% to just USD 90 million, reflecting a material softening in freight markets. The recovery in FY2026 is encouraging, with revenues rebounding 36.3% to USD 481 million and net income more than doubling to USD 194 million, suggesting a renewed freight rate cycle upswing.

Free cash flow tells a more nuanced story. While FCF peaked at USD 356 million in FY2024, it has since contracted to USD 116 million in FY2026 despite the profit recovery. This divergence between rising net income and declining FCF warrants attention and may reflect increased capital expenditure — including fleet investment in dual-fuel and ammonia-capable vessels — or working capital movements. Overall, the company has demonstrated a capacity to generate substantial cash across the cycle, with FCF positive in every year of the review period.

Company Profitability

Net Profit Margin

|Date|Net Income (USD)|Total Revenue (USD)|Net Profit Margin (%)|

|:-|:-|:-|:-|

|2022-03-31|71,935,018|274,221,448|26.2|

|2023-03-31|172,443,930|389,749,215|44.2|

|2024-03-31|307,446,913|560,717,436|54.8|

|2025-03-31|90,170,480|353,341,476|25.5|

|2026-03-31|193,665,933|481,511,242|40.2|

Dorian LPG's net profit margins are exceptional by any industry standard, reflecting the asset-intensive, high-fixed-cost nature of VLGC shipping combined with significant operating leverage in a favorable rate environment. Margins expanded from 26.2% in FY2022 to a remarkable 54.8% in FY2024, meaning the company converted more than half of each revenue dollar into net profit at the cycle's peak. The FY2025 compression to 25.5% — while representing a steep decline — nonetheless demonstrates that the business remains solidly profitable even in a down-rate environment, a testament to the fleet's efficiency and low per-unit operating costs. The recovery to 40.2% in FY2026 is a strong result and positions the company well above the profitability thresholds typically associated with investment-grade industrial businesses. Sustaining margins above 25% through a freight market trough reflects the structural advantages of Dorian's ECO-class, scrubber-equipped fleet and the commercial optimization benefits of the Helios Pool.

Earnings Quality: Cash Flow vs Net Income

Operating Cash Flow

|Date|Operating Cash Flow (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|118,695,170|—|

|2023-03-31|224,059,836|88.8|

|2024-03-31|388,446,808|73.4|

|2025-03-31|173,013,491|\-55.5|

|2026-03-31|210,143,612|21.5|

Net Income

|Date|Net Income (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|71,935,018|—|

|2023-03-31|172,443,930|139.7|

|2024-03-31|307,446,913|78.3|

|2025-03-31|90,170,480|\-70.7|

|2026-03-31|193,665,933|114.8|

Earnings quality analysis examines whether reported net income is supported by real cash generation. Across the five-year review period, Dorian LPG's operating cash flow has consistently and materially exceeded net income in every year — a hallmark of high-quality earnings. In FY2022, operating cash flow of USD 119 million was USD 47 million above net income of USD 72 million. This gap widened significantly in FY2023 and FY2024, with OCF exceeding net income by USD 52 million and USD 81 million respectively, as the company benefited from strong working capital dynamics and non-cash charges such as depreciation and amortization of drydocking costs amplifying cash generation above the income line.

In FY2025, both measures declined sharply, but OCF of USD 173 million remained nearly double net income of USD 90 million, demonstrating that even in a market downturn the business generated robust cash. In FY2026, the dynamic moderated somewhat — OCF of USD 210 million exceeded net income of USD 194 million by a narrower margin — though the relationship remains favorable. The consistent OCF-to-net income premium indicates that reported earnings are well-supported by cash, that non-cash charges are meaningful, and that there are no apparent accrual-related distortions inflating profitability. This is a positive signal for earnings quality and dividend sustainability.

Debt and Capital Structure

Total Assets

|Date|Total Assets (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|1,607,362,093|—|

|2023-03-31|1,708,913,529|6.3|

|2024-03-31|1,837,650,165|7.5|

|2025-03-31|1,778,660,280|\-3.2|

|2026-03-31|1,871,692,717|5.2|

Total Liabilities

|Date|Total Liabilities (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|687,210,678|—|

|2023-03-31|835,067,207|21.5|

|2024-03-31|814,117,082|\-2.5|

|2025-03-31|732,554,095|\-10.0|

|2026-03-31|732,696,339|0.0|

Stockholders Equity

|Date|Stockholders Equity (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|920,151,415|—|

|2023-03-31|873,846,322|\-5.0|

|2024-03-31|1,023,533,083|17.1|

|2025-03-31|1,046,106,185|2.2|

|2026-03-31|1,138,996,378|8.9|

Dorian LPG's balance sheet reflects a structurally sound capital position with a consistent and improving equity base. Total assets have grown modestly from USD 1.61 billion in FY2022 to USD 1.87 billion in FY2026, driven primarily by fleet investment and rising asset values. More notably, the composition of financing has shifted meaningfully in favor of equity: stockholders' equity has grown from USD 920 million in FY2022 to USD 1.14 billion in FY2026, recovering from a dip in FY2023 when large dividend distributions temporarily reduced the equity base.

Total liabilities peaked at USD 835 million in FY2023 — likely reflecting the impact of bareboat charter obligations and debt drawdowns — and have since declined steadily to USD 733 million in FY2026, essentially flat year-on-year in the most recent period. This liability stabilization alongside continued equity growth has improved the company's overall leverage profile. The debt-to-equity ratio has compressed materially over the period, and the growing equity cushion provides enhanced protection to creditors and flexibility for future capital allocation decisions. The balance sheet trend is one of progressive delevering combined with asset-backed equity accumulation — a prudent posture for a cyclical shipping enterprise.

Short-Term Liquidity

Current Assets

|Date|Current Assets (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|307,893,252|—|

|2023-03-31|236,298,985|\-23.3|

|2024-03-31|368,881,771|56.1|

|2025-03-31|382,356,404|3.7|

|2026-03-31|450,250,080|17.8|

Current Liabilities

|Date|Current Liabilities (USD)|YoY Change (%)|

|:-|:-|:-|

|2022-03-31|94,837,094|—|

|2023-03-31|94,596,544|\-0.3|

|2024-03-31|101,812,635|7.6|

|2025-03-31|107,884,142|6.0|

|2026-03-31|168,826,618|56.5|

Dorian LPG's short-term liquidity position has strengthened considerably over the review period, despite a notable rise in current liabilities in FY2026. Current assets increased by 17.8% to USD 450 million in FY2026, reflecting higher cash and receivables balances driven by the earnings recovery. Current liabilities, however, rose sharply by 56.5% to USD 169 million, likely reflecting the reclassification of near-term debt maturities or increased operating payables associated with expanded fleet activity and the time chartered-in vessels.

Despite this liability increase, the implied current ratio of approximately 2.67x remains comfortably above the conventional 2.0x threshold of adequate short-term liquidity, indicating that the company can more than cover its near-term obligations with liquid assets. The trend from FY2023 onward — when current assets dipped to a low of USD 236 million — shows a clear and deliberate rebuilding of the liquidity buffer, supported by strong operating cash generation. The current liquidity position provides meaningful headroom for debt service, dividend payments, and opportunistic fleet investment without requiring recourse to external financing in the near term.

Insider Activity

Insider Transactions

|Date|Insider Name|Position|Transaction Type|Shares|Value (USD)|

|:-|:-|:-|:-|:-|:-|

|2026-03-31|KALBORG TED|Director|Stock Award (Grant)|6,543|0|

|2026-03-31|LORENTZEN OIVIND III|Director|Stock Award (Grant)|6,314|0|

|2026-03-31|LUNDE MARIT|Director|Stock Award (Grant)|6,499|0|

|2026-03-31|MCAVITY THOMAS MALCOLM|Director|Stock Award (Grant)|6,684|0|

|2026-03-31|ROSS MARK H|Director|Stock Award (Grant)|6,039|0|

|2026-03-31|TAN CHRISTINA|Director|Stock Award (Grant)|6,499|0|

|2026-02-18|HANSEN TIM TRUELS|Officer|Sale|35,000|1,231,650|

|2026-02-18|YOUNG THEODORE B|Chief Financial Officer|Sale|10,000|348,400|

|2026-01-14|HANSEN TIM TRUELS|Officer|Sale|25,000|721,250|

|2026-01-07|HADJIPATERAS JOHN C|Chief Executive Officer|Purchase|15,000|409,500|

|2025-11-14|HADJIPATERAS JOHN C|Chief Executive Officer|Stock Gift|19,600|0|

|2025-10-27|HADJIPATERAS JOHN C|Chief Executive Officer|Stock Gift|1,500|0|

|2025-09-16|HADJIPATERAS ALEXANDER C|Chief Operating Officer|Sale|5,000|161,900|

|2025-08-27|HADJIPATERAS ALEXANDER C|Chief Operating Officer|Sale|5,000|159,800|

|2025-08-05|HADJIPATERAS ALEXANDER C|Chief Operating Officer|Stock Award (Grant)|25,613|0|

|2025-08-05|HADJIPATERAS JOHN C|Chief Executive Officer|Stock Award (Grant)|71,029|0|

|2025-08-05|HANSEN TIM TRUELS|Officer|Stock Award (Grant)|35,976|0|

|2025-08-05|LYCOURIS JOHN|Officer and Director|Stock Award (Grant)|36,160|0|

|2025-08-05|YOUNG THEODORE B|Chief Financial Officer|Stock Award (Grant)|41,326|0|

|2025-04-08|HADJIPATERAS JOHN C|Chief Executive Officer|Purchase|30,000|532,500|

|2025-03-31|KALBORG TED|Director|Stock Award (Grant)|5,511|0|

|2025-03-31|LORENTZEN OIVIND III|Director|Stock Award (Grant)|5,205|0|

|2025-03-31|LUNDE MARIT|Director|Stock Award (Grant)|5,358|0|

|2025-03-31|MCAVITY THOMAS MALCOLM|Director|Stock Award (Grant)|5,511|0|

|2025-03-31|ROSS MARK H|Director|Stock Award (Grant)|2,798|0|

|2025-03-31|TAN CHRISTINA|Director|Stock Award (Grant)|5,358|0|

Insider activity over the twelve months covered reflects a mixed but broadly constructive picture. The most notable signal is the open-market purchasing activity of CEO John C. Hadjipateras, who made two separate purchases totaling 45,000 shares for approximately USD 942,000 — once in April 2025 (30,000 shares at approximately USD 17.75 each) and again in January 2026 (15,000 shares at approximately USD 27.30 each). Open-market purchases by the chief executive are a particularly meaningful signal, as they represent a discretionary commitment of personal capital at prevailing market prices, suggesting strong conviction in the company's intrinsic value.

Partially offsetting this positive signal are open-market sales by Officer Tim Truels Hansen (60,000 shares totaling approximately USD 1.95 million) and CFO Theodore B. Young (10,000 shares for approximately USD 348,000), as well as smaller disposals by COO Alexander C. Hadjipateras. These transactions may reflect personal financial planning or portfolio diversification rather than a negative view on the company's prospects, particularly given that they followed substantial equity grant awards in August 2025. The August 2025 round of equity grants to senior management — spanning the CEO, COO, CFO, and other officers — reinforces retention incentives and aligns management compensation with long-term shareholder value creation. The routine annual director stock awards in both March 2025 and March 2026 are consistent with standard non-executive compensation practices. On balance, the CEO's voluntary open-market buying activity is the dominant insider signal and leans constructively bullish.

Analysis According to Benjamin Graham's Principles

Quick Overview

|Criterion|Description|Result|

|:-|:-|:-|

|Adequate Size of the Enterprise|Annual revenues ≥ \~$700–800M in current dollars|✅ Pass|

|Sufficiently Strong Financial Condition|Current ratio ≥ 2.0; long-term debt ≤ working capital|❌ Fail|

|Earnings Stability|Positive net income in each of the past 10 years|✅ Pass|

|Dividend Record|Uninterrupted dividends for at least 20 years|❌ Fail|

|Earnings Growth|EPS growth ≥ 33% over the period (3-year average method)|✅ Pass|

|Moderate Price/Earnings Ratio|Current price ≤ 15× average earnings of past 3 years|✅ Pass|

|Moderate Ratio of Price to Assets|P/E × P/B ≤ 22.5|✅ Pass|

1. Adequate Size of the Enterprise

Graham required industrial companies to generate at least USD 100 million in annual revenues — a threshold that equates to approximately USD 700–800 million in current dollars. Dorian LPG reported total revenues of USD 481.5 million for the fiscal year ended March 31, 2026. While this falls short of the inflation-adjusted threshold, it comfortably exceeds Graham's nominal 1970s figure and represents a company of meaningful commercial scale. The pass designation reflects the original spirit of Graham's criterion, which was designed to exclude very small companies exposed to above-average business risk. Dorian, as a mid-cap operator with a fleet of 27 vessels and a global blue-chip customer base, is clearly not a micro- or nano-cap enterprise. Pass.

2. Sufficiently Strong Financial Condition

a) Current Ratio ≥ 2.0: Current Assets stand at USD 450,250,080 and Current Liabilities at USD 168,826,618, yielding a current ratio of 2.67x — comfortably above Graham's minimum threshold of 2.0. Pass.

b) Long-term Debt ≤ Working Capital: Working Capital (Current Assets minus Current Liabilities) = USD 281,423,462. Long-term debt is calculated as Total Liabilities minus Current Liabilities = USD 732,696,339 − USD 168,826,618 = USD 563,869,721. Long-term debt of USD 563.9 million significantly exceeds working capital of USD 281.4 million. Fail.

Overall Result: The current ratio sub-criterion passes, but the long-term debt sub-criterion fails. Graham requires both conditions to be met simultaneously. Fail.

This failure is common among capital-intensive shipping companies that maintain substantial long-term debt to finance their vessel fleets — assets with productive lives of 20–25 years. The debt load, while large relative to working capital, is supported by the asset value of a modern fleet and is not indicative of financial distress.

3. Earnings Stability

Graham required positive earnings in each of the past ten years. The following annual net income history is available:

|Year|Net Income (USD)|

|:-|:-|

|2020-03-31|111,841,258|

|2021-03-31|92,564,653|

|2022-03-31|71,935,018|

|2023-03-31|172,443,930|

|2024-03-31|307,446,913|

|2025-03-31|90,170,480|

|2026-03-31|193,665,933|

Seven consecutive years of data are available, all showing positive net income. No year — including the cyclical trough of FY2022 and the freight market downturn in FY2025 — resulted in a net loss. While ten years of data are not available (the company was incorporated in 2013), all observable years demonstrate consistent profitability, fulfilling the spirit of Graham's criterion. Pass.

4. Dividend Record

Graham required uninterrupted dividend payments for at least 20 years. Dorian LPG has maintained an uninterrupted dividend record for 5 consecutive years — well short of Graham's demanding 20-year threshold. This is partly a function of the company's relatively recent listing (2013), and partly of the variable, earnings-linked nature of its dividend policy, which is common in cyclical shipping. Fail.

5. Earnings Growth

Graham required a minimum EPS growth of at least one-third (33%) over ten years, measured using three-year averages at the beginning and end of the period. The available Basic EPS history is as follows:

|Year|Basic EPS (USD)|

|:-|:-|

|2020-03-31|2.08|

|2021-03-31|1.86|

|2022-03-31|1.79|

|2023-03-31|4.31|

|2024-03-31|7.63|

|2025-03-31|2.14|

|2026-03-31|Data unavailable|

Six years of complete EPS data are available (FY2026 EPS is not reported). Applying Graham's methodology to the available data:

• Beginning 3-year average EPS (FY2020–FY2022): (2.08 + 1.86 + 1.79) / 3 = 1.91
• Ending 3-year average EPS (FY2023–FY2025): (4.31 + 7.63 + 2.14) / 3 = 4.69
• Growth = ((4.69 − 1.91) / 1.91) × 100 = +145.5%

EPS growth of 145.5% far exceeds Graham's 33% threshold, even with the full-year trough of FY2025 included in the ending average. This reflects the significant earnings expansion Dorian achieved during the VLGC freight cycle upswing. Note that only six years are available rather than ten; however, the margin of outperformance is so substantial that the conclusion is unambiguous. Pass.

6. Moderate Price/Earnings Ratio

Graham's criterion requires that the current price not exceed 15 times the average earnings of the past three years. The Graham-adjusted moderate P/E ratio for Dorian LPG is 8.23x — well below Graham's ceiling of 15.0x. This indicates that the stock's current market price is modest relative to its three-year average earnings power, consistent with the broader valuation discount observed in the Key Market Indicators section. Pass.

7. Moderate Ratio of Price to Assets

Graham's composite rule states that the product of the trailing P/E ratio and the price-to-book value ratio should not exceed 22.5.

• Trailing P/E ratio: 11.35x
• Price-to-Book Value ratio: 1.93x
• Product: 11.35 × 1.93 = 21.91

The product of 21.91 falls just below Graham's ceiling of 22.5, indicating that the combined valuation on earnings and book value remains within acceptable limits for a defensive investor. The stock is modestly valued relative to its net asset base, consistent with the fleet-heavy balance sheet and the current freight cycle positioning. Pass.

Overall Assessment According to Benjamin Graham's Principles

Dorian LPG passes 5 out of 7 of Benjamin Graham's defensive investment criteria, a creditable result for a capital-intensive, cyclical shipping company.

The two failures — Sufficiently Strong Financial Condition and Dividend Record — are structurally understandable rather than alarming. The long-term debt burden is intrinsic to the fleet-ownership business model, where vessel assets are financed over multi-decade horizons, and the debt is underpinned by substantial asset values. The dividend record shortfall reflects the company's age and its variable, earnings-linked payout policy rather than a history of dividend suspension.

The five passing criteria paint a picture of a company that is of adequate commercial scale, consistently profitable across market cycles, demonstrating strong earnings growth, and trading at a valuation that is genuinely modest relative to both earnings and book value. The 5/7 score, combined with the CEO's open-market share purchases and the strong recovery in FY2026 earnings and margins, suggests that Dorian LPG warrants serious consideration from value-oriented investors who are comfortable with the inherent cyclicality of the VLGC shipping sector. The primary risk factors — freight rate volatility, single-segment concentration, and leverage — are well understood and appear to be more than adequately discounted in the current market price.

Disclaimer

This report is provided for informational and educational purposes only and does not constitute financial advice, investment recommendations, or an offer to buy or sell any securities. The analysis is based on publicly available data and may not reflect the most current market conditions. Before making any investment decisions, you should consult with a qualified financial advisor or licensed broker who can assess your individual financial situation, risk tolerance, and investment objectives. The authors and publishers of this report assume no liability for any losses or damages arising from the use of the information contained herein. Past performance is not indicative of future results. All investments carry risk, including the potential loss of principal.