GasLog Partners LP (GLOP), headquartered in Piraeus, Greece, reported strong financials for the previous quarter. The company’s revenues grew 16% year-over-year to $99.07 million, while its adjusted profit and adjusted earnings per unit came in at $39.30 million and $0.62, up 39% and 51% from the prior-year quarter, respectively.
Shares of the LNG carrier operating company closed at $8.48 in its latest trading session. In terms of its forward non-GAAP P/E, GLOP is trading at 3.87x, 52.7% lower than the industry average of 8.17x. Its forward Price/Cash Flow multiple of 1.70 is 57.2% lower than the industry average of 3.98. The organization is also preparing to merge with GasLog Ltd.
Let's examine some of the company’s key metrics to understand the stock’s upside potential.
Tracking GLOP's Net Income, Price/Earnings Ratio, and Gross Margin
The net income of GLOP has seen a volatile trend, with a cumulative change from -$54.5 million (June 2020) to -$8.6 million (June 2022), followed by a surge to $118.9 million (December 2022). The most recent value is $120.4 million (March 2023), showing a growth rate of 221% since June 2020.
The P/E ratio for GLOP has been fluctuating significantly over the past few years until its recent dramatic rise in June 2023 to 3.73. From June 30, 2020, to March 31, 2021, the P/E ratio decreased from -3.64 to 1.96 and then increased to 2.69 by June 30, 2021. In the following quarter, it rose to 2.74, followed by a sharp increase to 31.72 on 2021-12-31.
From that point, the P/E ratio continued to climb all the way to 36.98 by the end of 2021 and then climbed further to 50.753 by the end of March 2022 before experiencing a sharp decline back to -34.25 by June 2022.
Following this, the P/E ratio again increased and ended at 54.89 by September 2022 before settling back to 3.875 by December 2022. The overall growth rate since the beginning of this series is 689.9%.
Overall, there has been an increase in GLOP’s revenue over the 23-month period ending March 2023. The revenue started at $36.9 million in June 2020 and peaked at $38.5 million in March 2023 — a growth rate of 4.1%. There have been several fluctuations across the 23-month period, with the most significant being a drop of 7.2% between September 2020 and December 2020.
The gross margin of GLOP showed a generally upward trend, with a slight decrease near the end of 2020 to 74.5%, followed by a slight increase to 75.1% at the start of 2021. The gross margin then decreased again to 73.2% during the second quarter of 2021 before increasing back up to 74.4% during the third quarter of 2021.
In the fourth quarter of 2021, the gross margin increased even further to 74.8% and then peaked in the first quarter of 2022 at 75.9%. The gross margin declined slightly over the next two quarters to 77.5% and 78.7%, respectively, before increasing to 80.0% at the end of the third quarter of 2022.
Overall, the gross margin of GLOP increased by 5.3% between the first and last quarters.
GLOP Share Price Steadily Increases 6.7% Month Over Month
The trend of GasLog Partners LP's share price over time shows that it has been steadily increasing, starting at $6.31 in January 2023 and rising to $8.48 in May 2023. The growth rate of GLOP is approximately 6.7% per month. Here is a chart of GLOP's price over the past 180 days.
GasLog Partners LP: High POWR Ratings for Momentum, Quality, and Sentiment
GLOP has an overall POWR Ratings grade of B, which translates to Buy in our proprietary rating system. Its most recent value is B, with a rank-in-category of 7 (out of 42 stocks in the A-rated Shipping category) as of April 12, 2023.
The three most noteworthy POWR Ratings for GLOP across the six dimensions are Momentum, Quality, and Sentiment. These three dimensions have the highest ratings, with Momentum at 100, Quality at 96 or higher, and Sentiment at 91 or higher. As time goes on, the Stability dimension shows a modest uptrend, while the Value dimension remains stable throughout the measurement.
How does GasLog Partners LP (GLOP) Stack Up Against its Peers?
Other stocks in the Shipping sector that may be worth considering are Overseas Shipholding Group, Inc. (OSG), StealthGas Inc. (GASS), and Teekay Corporation (TK) -- they have better POWR Ratings.
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GLOP shares were trading at $8.48 per share on Wednesday afternoon, down $0.00 (0.00%). Year-to-date, GLOP has gained 27.48%, versus a 8.16% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
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