Capital Product Partners L.P. (CPLP) | Investment Case

1. Company Snapshot

1.a. Company Description

Capital Product Partners L.P., a shipping company, provides marine transportation services in Greece.Its vessels transport a range of cargoes, including liquefied natural gas, containerized goods, and dry bulk cargo under short-term voyage charters, and medium to long-term time charters.As of April 27, 2022, the company owned 21 vessels, including 11 Neo-Panamax container vessels, three Panamax container vessels, one cape-size bulk carrier, and six LNG carriers.

Capital GP L.L.C. serves as the general partner of the company.The company was incorporated in 2007 and is headquartered in Piraeus, Greece.

Show Full description

1.b. Last Insights on CPLP

Capital Product Partners L.P.'s recent performance was driven by a strong second-quarter earnings release, which beat expectations. The company's cash distribution of $0.15 per common unit for the second quarter of 2024 also contributed to the positive sentiment. Additionally, the approval of the corporate conversion and name change to Capital Clean Energy Carriers Corp. marks a strategic pivot towards the LNG and energy transition business, which is expected to drive future growth.

1.c. Company Highlights

Last Price	16.77
Change Percentage	2.13%
Open	16.22
Previous Close	16.42
Market Cap ( Millions)	979
Volume	9356
Year High	18.85
Year Low	12.7
M A 50	16.68
M A 200	16.76

FCF Yield	-2.73%
Dividend Yield	2.89%
ROE	25.70%
Debt / Equity	0.00%
Net Debt / EBIDTA	650.94%
Price To Book	0
Price Earnings Ratio	6.59
Price To FCF	-36.58
Price To sales	2.9
EV / EBITDA	10.26

2. Transcript Summary

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3. NewsRoom

Capital Clean Energy Carriers Corp. Announces Completion of Corporate Conversion, Change of Name, Corporate Logo and Nasdaq Ticker

Aug -26

Source: globenewswire.com

LNG Shipping Stocks: Market Turbulence Affects Shippers With Mixed Results

Aug -12

Source: seekingalpha.com

Capital Product Partners L.P. Announces Second Quarter 2024 Financial Results

Aug -02

Source: globenewswire.com

Capital Product Partners L.P. Announces Approval of Corporate Conversion and Name Change as It Continues Its Strategic Pivot to The LNG and Energy Transition Business

Aug -02

Source: globenewswire.com

Capital Product Partners L.P. Schedules Second Quarter 2024 Earnings Release, Conference Call and Webcast

Jul -29

Source: globenewswire.com

Capital Product Partners L.P. Announces Cash Distribution

Jul -24

Source: globenewswire.com

Capital Product Partners: Still Risky After Recent Dilution And Additional Debt

Jul -08

Source: seekingalpha.com

Capital Product Partners L.P. Announces Further Expansion With $756.0 Million Investment in Liquid CO2 and LPG-Ammonia Carriers

Jun -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Time Charters (Operating Leases)

Expected Growth: 4.83%

Capital Product Partners L.P.'s 4.83% growth in Time Charters (Operating Leases) is driven by increasing demand for energy transportation, expansion of liquefied natural gas (LNG) trade, and a growing fleet of modern vessels. Additionally, the partnership's strategic acquisitions and charter agreements with reputable counterparties contribute to its growth momentum.

Voyage Charters

Expected Growth: 4.83%

Strong demand for dry bulk commodities, increased iron ore and coal exports, and a growing global economy drive Voyage Charters' 4.83% growth. Additionally, Capital Product Partners L.P.'s strategic fleet expansion and operational efficiency improvements contribute to this growth.

7. Detailed Products

Crude Oil Transportation

Capital Product Partners L.P. provides crude oil transportation services, offering a safe and efficient way to transport crude oil from production sites to refineries.

Refined Petroleum Product Transportation

The company offers transportation services for refined petroleum products, such as gasoline, diesel, and jet fuel, from refineries to storage facilities and distribution centers.

Liquefied Petroleum Gas (LPG) Transportation

Capital Product Partners L.P. provides transportation services for LPG, a clean-burning fuel used for cooking, heating, and powering vehicles.

Dry Bulk Cargo Transportation

The company offers transportation services for dry bulk cargoes, such as iron ore, coal, and grains, from production sites to consumption centers.

Containerized Cargo Transportation

Capital Product Partners L.P. provides transportation services for containerized cargoes, such as electronics, machinery, and consumer goods, from ports to inland distribution centers.

8. Capital Product Partners L.P.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Capital Product Partners L.P. is medium due to the availability of alternative investment options in the energy sector.

Bargaining Power Of Customers

The bargaining power of customers is low as Capital Product Partners L.P. has a diversified customer base and long-term contracts in place.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium as Capital Product Partners L.P. relies on a few major suppliers for its operations, but has some flexibility in negotiating prices.

Threat Of New Entrants

The threat of new entrants is high in the energy sector, as new companies can enter the market with innovative technologies and business models.

Intensity Of Rivalry

The intensity of rivalry is high in the energy sector, with many established players competing for market share and customers.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	60.17%
Debt Cost	6.11%
Equity Weight	39.83%
Equity Cost	8.33%
WACC	7.00%
Leverage	151.10%

11. Quality Control: Capital Product Partners L.P. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

United Maritime

A-Score: 4.9/10

Value: 8.9

Growth: 5.9

Quality: 2.1

Yield: 10.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

Diana Shipping

A-Score: 4.6/10

Value: 8.7

Growth: 3.3

Quality: 4.6

Yield: 7.5

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

Navios Maritime Partners

A-Score: 4.4/10

Value: 9.0

Growth: 5.3

Quality: 5.6

Yield: 1.2

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

Capital Product Partners

A-Score: 4.4/10

Value: 5.6

Growth: 2.7

Quality: 4.8

Yield: 6.2

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

Performance Shipping

A-Score: 4.2/10

Value: 10.0

Growth: 3.8

Quality: 7.9

Yield: 0.0

Momentum: 3.0

Volatility: 0.7

1-Year Total Return ->

Toro

A-Score: 4.0/10

Value: 5.8

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 7.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

36.93%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.00%

Capital Product Partners L.P. - MHY110822068

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CPLP

1.c. Company Highlights

Stable Momentum

Average Yield

Average Growth

Earnings Beats

Average Quality

Revenues Miss

Fairly Valued

Less Volatile

Medium Volatility

Lower Growth

Higher Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Time Charters (Operating Leases)

Expected Growth: 4.83%

Voyage Charters

Expected Growth: 4.83%

7. Detailed Products

Crude Oil Transportation

Refined Petroleum Product Transportation

Liquefied Petroleum Gas (LPG) Transportation

Dry Bulk Cargo Transportation

Containerized Cargo Transportation

8. Capital Product Partners L.P.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Capital Product Partners L.P. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.77$

Current Price

16.77$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA