ARDMORE SHIPPING CORP (ASC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASC - MHY0207T1001 - Common Stock
12.06 USD
-0.17 (-1.39%)
12.06 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ASC. ASC was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. ASC has an excellent financial health rating, but there are some minor concerns on its profitability. ASC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ASC had positive earnings in the past year.
ASC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ASC reported negative net income in multiple years.
ASC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ASC's Return On Assets of 3.98% is in line compared to the rest of the industry. ASC outperforms 55.98% of its industry peers.
ASC has a Return On Equity of 4.85%. This is comparable to the rest of the industry: ASC outperforms 42.58% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.51%, ASC is doing worse than 61.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ASC is significantly below the industry average of 21.47%.
The last Return On Invested Capital (4.51%) for ASC is well below the 3 year average (16.40%), which needs to be investigated, but indicates that ASC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 4.85% | ||
| ROIC | 4.51% |
ROA(3y)17.77%
ROA(5y)9.45%
ROE(3y)22.22%
ROE(5y)10.64%
ROIC(3y)16.4%
ROIC(5y)N/A
1.3 Margins
ASC's Profit Margin of 10.29% is in line compared to the rest of the industry. ASC outperforms 56.46% of its industry peers.
Looking at the Operating Margin, with a value of 14.28%, ASC is in line with its industry, outperforming 46.89% of the companies in the same industry.
In the last couple of years the Operating Margin of ASC has grown nicely.
ASC has a Gross Margin (41.93%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ASC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.28% | ||
| PM (TTM) | 10.29% | ||
| GM | 41.93% |
OM growth 3YN/A
OM growth 5Y35.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y32.83%
GM growth 5Y11.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ASC is creating value.
Compared to 1 year ago, ASC has less shares outstanding
The number of shares outstanding for ASC has been increased compared to 5 years ago.
The debt/assets ratio for ASC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.07 indicates that ASC is not in any danger for bankruptcy at the moment.
ASC's Altman-Z score of 3.07 is amongst the best of the industry. ASC outperforms 82.78% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that ASC is not too dependend on debt financing.
ASC's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. ASC outperforms 73.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.07 |
ROIC/WACC0.52
WACC8.66%
2.3 Liquidity
A Current Ratio of 4.46 indicates that ASC has no problem at all paying its short term obligations.
ASC has a Current ratio of 4.46. This is amongst the best in the industry. ASC outperforms 88.52% of its industry peers.
ASC has a Quick Ratio of 4.08. This indicates that ASC is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ASC (4.08) is better than 87.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.46 | ||
| Quick Ratio | 4.08 |
3. Growth
3.1 Past
ASC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.07%.
The Revenue has been growing slightly by 2.48% in the past year.
ASC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.02% yearly.
EPS 1Y (TTM)-68.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y28.22%
Revenue growth 5Y12.02%
Sales Q2Q%-39.94%
3.2 Future
The Earnings Per Share is expected to decrease by -6.33% on average over the next years.
Based on estimates for the next years, ASC will show a very negative growth in Revenue. The Revenue will decrease by -15.31% on average per year.
EPS Next Y-65.82%
EPS Next 2Y-30.17%
EPS Next 3Y-6.33%
EPS Next 5YN/A
Revenue Next Year-48.98%
Revenue Next 2Y-21.67%
Revenue Next 3Y-15.31%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.25, the valuation of ASC can be described as correct.
62.20% of the companies in the same industry are more expensive than ASC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ASC to the average of the S&P500 Index (26.11), we can say ASC is valued slightly cheaper.
ASC is valuated reasonably with a Price/Forward Earnings ratio of 8.68.
ASC's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASC is cheaper than 81.34% of the companies in the same industry.
ASC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASC is valued a bit cheaper than 60.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.34 |
4.3 Compensation for Growth
A cheap valuation may be justified as ASC's earnings are expected to decrease with -6.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-30.17%
EPS Next 3Y-6.33%
5. Dividend
5.1 Amount
ASC has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.96, ASC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, ASC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
ASC has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ASC pays out 59.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.21%
EPS Next 2Y-30.17%
EPS Next 3Y-6.33%
12.06
-0.17 (-1.39%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.1%
Inst Owner Change-6.31%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap490.84M
Revenue(TTM)405.78M
Net Income(TTM)31.82M
Analysts84.44
Price Target15.61 (29.44%)
Short Float %6.1%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend1.2
Dividend Growth(5Y)N/A
DP59.21%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.07%
Min EPS beat(2)10.01%
Max EPS beat(2)28.13%
EPS beat(4)3
Avg EPS beat(4)6.32%
Min EPS beat(4)-19.5%
Max EPS beat(4)28.13%
EPS beat(8)5
Avg EPS beat(8)3.92%
EPS beat(12)9
Avg EPS beat(12)4.09%
EPS beat(16)12
Avg EPS beat(16)9.06%
Revenue beat(2)2
Avg Revenue beat(2)64.97%
Min Revenue beat(2)59.03%
Max Revenue beat(2)70.9%
Revenue beat(4)3
Avg Revenue beat(4)35.39%
Min Revenue beat(4)-19.84%
Max Revenue beat(4)70.9%
Revenue beat(8)7
Avg Revenue beat(8)32.62%
Revenue beat(12)11
Avg Revenue beat(12)35.42%
Revenue beat(16)15
Avg Revenue beat(16)46.08%
PT rev (1m)14.18%
PT rev (3m)17.09%
EPS NQ rev (1m)-13.98%
EPS NQ rev (3m)-10.95%
EPS NY rev (1m)0.99%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 8.68 | ||
| P/S | 1.59 | ||
| P/FCF | N/A | ||
| P/OCF | 6.26 | ||
| P/B | 0.75 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)0.91
EY7.55%
EPS(NY)1.39
Fwd EY11.52%
FCF(TTM)-1.07
FCFYN/A
OCF(TTM)1.93
OCFY15.97%
SpS7.6
BVpS16.12
TBVpS16.12
PEG (NY)N/A
PEG (5Y)N/A
Graham Number18.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 4.85% | ||
| ROCE | 5.71% | ||
| ROIC | 4.51% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 4.8% | ||
| OM | 14.28% | ||
| PM (TTM) | 10.29% | ||
| GM | 41.93% | ||
| FCFM | N/A |
ROA(3y)17.77%
ROA(5y)9.45%
ROE(3y)22.22%
ROE(5y)10.64%
ROIC(3y)16.4%
ROIC(5y)N/A
ROICexc(3y)17.67%
ROICexc(5y)N/A
ROICexgc(3y)17.67%
ROICexgc(5y)N/A
ROCE(3y)20.75%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y52.79%
ROICexc growth 3YN/A
ROICexc growth 5Y52.79%
OM growth 3YN/A
OM growth 5Y35.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y32.83%
GM growth 5Y11.07%
F-Score4
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 380.02% | ||
| Cap/Sales | 39.48% | ||
| Interest Coverage | 8.89 | ||
| Cash Conversion | 102.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.46 | ||
| Quick Ratio | 4.08 | ||
| Altman-Z | 3.07 |
F-Score4
WACC8.66%
ROIC/WACC0.52
Cap/Depr(3y)102.83%
Cap/Depr(5y)76.45%
Cap/Sales(3y)7.49%
Cap/Sales(5y)6.69%
Profit Quality(3y)94.73%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-65.82%
EPS Next 2Y-30.17%
EPS Next 3Y-6.33%
EPS Next 5YN/A
Revenue 1Y (TTM)2.48%
Revenue growth 3Y28.22%
Revenue growth 5Y12.02%
Sales Q2Q%-39.94%
Revenue Next Year-48.98%
Revenue Next 2Y-21.67%
Revenue Next 3Y-15.31%
Revenue Next 5YN/A
EBIT growth 1Y-69.86%
EBIT growth 3YN/A
EBIT growth 5Y51.26%
EBIT Next Year-39.42%
EBIT Next 3Y-2.19%
EBIT Next 5YN/A
FCF growth 1Y-124.01%
FCF growth 3YN/A
FCF growth 5Y41.1%
OCF growth 1Y-61.11%
OCF growth 3YN/A
OCF growth 5Y50.91%
ARDMORE SHIPPING CORP / ASC FAQ
Can you provide the ChartMill fundamental rating for ARDMORE SHIPPING CORP?
ChartMill assigns a fundamental rating of 4 / 10 to ASC.
What is the valuation status of ARDMORE SHIPPING CORP (ASC) stock?
ChartMill assigns a valuation rating of 4 / 10 to ARDMORE SHIPPING CORP (ASC). This can be considered as Fairly Valued.
What is the profitability of ASC stock?
ARDMORE SHIPPING CORP (ASC) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ASC stock?
The Price/Earnings (PE) ratio for ARDMORE SHIPPING CORP (ASC) is 13.25 and the Price/Book (PB) ratio is 0.75.
Can you provide the expected EPS growth for ASC stock?
The Earnings per Share (EPS) of ARDMORE SHIPPING CORP (ASC) is expected to decline by -65.82% in the next year.