ARDMORE SHIPPING CORP (ASC)
MHY0207T1001 - Common Stock
We assign a fundamental rating of 7 out of 10 to ASC. ASC was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. ASC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ASC has a bad growth rate and is valued cheaply. With these ratings, ASC could be worth investigating further for value investing!.
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
Looking at the Return On Assets, with a value of 20.71%, ASC belongs to the top of the industry, outperforming 91.63% of the companies in the same industry.
With a decent Return On Equity value of 22.54%, ASC is doing good in the industry, outperforming 75.86% of the companies in the same industry.
ASC has a better Return On Invested Capital (16.89%) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.71% | ||
| ROE | 22.54% | ||
| ROIC | 16.89% |
ROA(3y)9.94%
ROA(5y)5.21%
ROE(3y)11.61%
ROE(5y)5.19%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 35.42%, ASC belongs to the top of the industry, outperforming 83.25% of the companies in the same industry.
ASC has a Operating Margin of 34.69%. This is in the better half of the industry: ASC outperforms 68.97% of its industry peers.
ASC's Operating Margin has improved in the last couple of years.
ASC has a Gross Margin (54.27%) which is in line with its industry peers.
ASC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.69% | ||
| PM (TTM) | 35.42% | ||
| GM | 54.27% |
OM growth 3Y56.45%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.17%
GM growth 5Y19.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ASC is creating value.
Compared to 1 year ago, ASC has more shares outstanding
Compared to 5 years ago, ASC has more shares outstanding
The debt/assets ratio for ASC has been reduced compared to a year ago.
2.2 Solvency
ASC has an Altman-Z score of 7.00. This indicates that ASC is financially healthy and has little risk of bankruptcy at the moment.
ASC's Altman-Z score of 7.00 is amongst the best of the industry. ASC outperforms 90.64% of its industry peers.
The Debt to FCF ratio of ASC is 0.25, which is an excellent value as it means it would take ASC, only 0.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.25, ASC belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
ASC has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, ASC is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 7 |
ROIC/WACC1.96
WACC8.61%
2.3 Liquidity
A Current Ratio of 3.57 indicates that ASC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.57, ASC belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
A Quick Ratio of 3.26 indicates that ASC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.26, ASC belongs to the top of the industry, outperforming 82.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.57 | ||
| Quick Ratio | 3.26 |
3. Growth
3.1 Past
ASC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.00%.
Measured over the past years, ASC shows a very strong growth in Earnings Per Share. The EPS has been growing by 257.00% on average per year.
ASC shows a decrease in Revenue. In the last year, the revenue decreased by -1.67%.
ASC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.50% yearly.
EPS 1Y (TTM)-5%
EPS 3Y257%
EPS 5YN/A
EPS Q2Q%12.24%
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y21.62%
Revenue growth 5Y13.5%
Sales Q2Q%10.56%
3.2 Future
ASC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.26% yearly.
Based on estimates for the next years, ASC will show a very negative growth in Revenue. The Revenue will decrease by -11.07% on average per year.
EPS Next Y24.12%
EPS Next 2Y-5.33%
EPS Next 3Y-12.78%
EPS Next 5Y-7.26%
Revenue Next Year16%
Revenue Next 2Y-2.79%
Revenue Next 3Y-7.75%
Revenue Next 5Y-11.07%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ASC is valuated cheaply with a Price/Earnings ratio of 3.63.
93.60% 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 (28.65), we can say ASC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.79, the valuation of ASC can be described as very cheap.
Based on the Price/Forward Earnings ratio, ASC is valued cheaper than 89.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, ASC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.63 | ||
| Fwd PE | 4.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASC indicates a rather cheap valuation: ASC is cheaper than 90.64% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ASC is valued cheaper than 82.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.46 | ||
| EV/EBITDA | 2.78 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ASC may justify a higher PE ratio.
A cheap valuation may be justified as ASC's earnings are expected to decrease with -12.78% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y-5.33%
EPS Next 3Y-12.78%
5. Dividend
5.1 Amount
ASC has a Yearly Dividend Yield of 9.04%, which is a nice return.
The stock price of ASC dropped by -34.33% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ASC's Dividend Yield is rather good when compared to the industry average which is at 6.45. ASC pays more dividend than 83.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, ASC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
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 31.75% of its income as dividend. This is a sustainable payout ratio.
DP31.75%
EPS Next 2Y-5.33%
EPS Next 3Y-12.78%
ARDMORE SHIPPING CORP
NYSE:ASC (11/21/2024, 12:44:07 PM)
11.71
-0.61 (-4.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap489.95M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
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EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.63 | ||
| Fwd PE | 4.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.71% | ||
| ROE | 22.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.69% | ||
| PM (TTM) | 35.42% | ||
| GM | 54.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.57 | ||
| Quick Ratio | 3.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5%
EPS 3Y257%
EPS 5Y
EPS Q2Q%
EPS Next Y24.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y21.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y