Is LPG a high-quality business?

AlphaMadera's AlphaQuality grade scores Dorian LPG Ltd. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how LPG compares to a Buffett-style quality bar.

What is Dorian LPG Ltd.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to LPG based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes LPG a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

LPG - Dorian LPG Ltd.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $55.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B 70.6 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C 52.6

5yr Avg ROIC 8.4% 52/100
Operating Margin Trend -0.02 pp/yr 54/100

Capital Efficiency

Weight: 15%

B- 65.5

5yr Avg ROE 14.7% 79/100
5yr Share-Count CAGR 1.4% 41/100

Growth Quality

Weight: 15%

A 87.9

5yr Revenue CAGR 15.1% 91/100
5yr EPS CAGR 26.4% 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

A+ 99.0

5yr FCF Margin 41.2% 100/100
5yr FCF/NI Conversion 1.14x 98/100

Balance Sheet

Weight: 20%

B 73.2

Net Debt / EBITDA 1.30x 81/100
Interest Coverage (EBIT/Int) 7.62x 75/100
Altman Z-Score 2.51 57/100

Stability

Weight: 15%

C 51.0

EPS Volatility (σ/μ) 0.62 21/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 2/5 60/100

3 of 3 gurus held; 1 new buy; 1 added; 1 trimmed.

Holders: 3 +1
Avg Δ position: -29.8%
New buys: 1
Full exits: 0

Greenblatt new
Cooperman decreased -64%
Wood increased +4%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.