ARDMORE SHIPPING CORP (ASC) Stock Fundamental Analysis
NYSE:ASC - New York Stock Exchange, Inc. - MHY0207T1001 - Common Stock - Currency: USD
Taking everything into account, ASC scores 6 out of 10 in our fundamental rating. ASC was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While ASC has a great health rating, its profitability is only average at the moment. ASC is cheap, but on the other hand it scores bad on growth. These ratings could make ASC a good candidate 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
ASC has a Return On Assets of 13.88%. This is amongst the best in the industry. ASC outperforms 91.43% of its industry peers.
With a decent Return On Equity value of 15.01%, ASC is doing good in the industry, outperforming 73.33% of the companies in the same industry.
ASC has a better Return On Invested Capital (11.25%) than 82.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASC is significantly below the industry average of 23.80%.
The 3 year average ROIC (16.40%) for ASC is well above the current ROIC(11.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | 15.01% | ||
| ROIC | 11.25% |
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 has a Profit Margin of 25.66%. This is in the better half of the industry: ASC outperforms 78.10% of its industry peers.
ASC has a Operating Margin of 25.15%. This is comparable to the rest of the industry: ASC outperforms 58.57% of its industry peers.
ASC's Operating Margin has improved in the last couple of years.
ASC's Gross Margin of 48.16% is in line compared to the rest of the industry. ASC outperforms 55.71% of its industry peers.
In the last couple of years the Gross Margin of ASC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.15% | ||
| PM (TTM) | 25.66% | ||
| GM | 48.16% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ASC is still creating some value.
The number of shares outstanding for ASC has been reduced compared to 1 year ago.
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 6.39 indicates that ASC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.39, ASC belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
ASC has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.24, ASC belongs to the best of the industry, outperforming 92.38% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that ASC is not too dependend on debt financing.
ASC has a better Debt to Equity ratio (0.03) than 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 6.39 |
ROIC/WACC1.18
WACC9.54%
2.3 Liquidity
ASC has a Current Ratio of 3.73. This indicates that ASC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.73, ASC belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
A Quick Ratio of 3.36 indicates that ASC has no problem at all paying its short term obligations.
The Quick ratio of ASC (3.36) is better than 88.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.73 | ||
| Quick Ratio | 3.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.40% over the past year.
Looking at the last year, ASC shows a small growth in Revenue. The Revenue has grown by 2.48% in the last year.
Measured over the past years, ASC shows a quite strong growth in Revenue. The Revenue has been growing by 12.02% on average per year.
EPS 1Y (TTM)4.4%
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
Based on estimates for the next years, ASC will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.03% on average per year.
ASC is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -20.13% yearly.
EPS Next Y-68.04%
EPS Next 2Y-33.05%
EPS Next 3Y-13.03%
EPS Next 5YN/A
Revenue Next Year-35.71%
Revenue Next 2Y-26.62%
Revenue Next 3Y-20.13%
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
With a Price/Earnings ratio of 3.59, the valuation of ASC can be described as very cheap.
Based on the Price/Earnings ratio, ASC is valued cheaper than 96.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of ASC to the average of the S&P500 Index (27.41), we can say ASC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.02, the valuation of ASC can be described as reasonable.
Based on the Price/Forward Earnings ratio, ASC is valued a bit cheaper than the industry average as 75.71% of the companies are valued more expensively.
ASC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.59 | ||
| Fwd PE | 8.02 |
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 86.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ASC is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.84 | ||
| EV/EBITDA | 3.19 |
4.3 Compensation for Growth
ASC has a very decent profitability rating, which may justify a higher PE ratio.
ASC's earnings are expected to decrease with -13.03% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-33.05%
EPS Next 3Y-13.03%
5. Dividend
5.1 Amount
ASC has a Yearly Dividend Yield of 6.66%, which is a nice return.
ASC's Dividend Yield is a higher than the industry average which is at 6.41.
Compared to an average S&P500 Dividend Yield of 2.35, ASC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.66% |
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 45.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.11%
EPS Next 2Y-33.05%
EPS Next 3Y-13.03%
NYSE:ASC (7/14/2025, 3:45:54 PM)
10.245
-0.24 (-2.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners69.54%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap416.15M
Analysts84.44
Price Target16.96 (65.54%)
Short Float %6.54%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.66% |
Yearly Dividend1.2
Dividend Growth(5Y)N/A
DP45.11%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.44%
Min EPS beat(2)-19.5%
Max EPS beat(2)6.63%
EPS beat(4)2
Avg EPS beat(4)-4%
Min EPS beat(4)-19.5%
Max EPS beat(4)9.37%
EPS beat(8)5
Avg EPS beat(8)0.62%
EPS beat(12)9
Avg EPS beat(12)2.94%
EPS beat(16)11
Avg EPS beat(16)7.54%
Revenue beat(2)2
Avg Revenue beat(2)34.76%
Min Revenue beat(2)31.46%
Max Revenue beat(2)38.06%
Revenue beat(4)4
Avg Revenue beat(4)31.34%
Min Revenue beat(4)27.69%
Max Revenue beat(4)38.06%
Revenue beat(8)8
Avg Revenue beat(8)33.76%
Revenue beat(12)12
Avg Revenue beat(12)40.73%
Revenue beat(16)16
Avg Revenue beat(16)52.04%
PT rev (1m)0%
PT rev (3m)1.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.45%
EPS NY rev (1m)10.48%
EPS NY rev (3m)-25.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.59 | ||
| Fwd PE | 8.02 | ||
| P/S | 1.11 | ||
| P/FCF | 4.84 | ||
| P/OCF | 3.03 | ||
| P/B | 0.65 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 3.19 |
EPS(TTM)2.85
EY27.82%
EPS(NY)1.28
Fwd EY12.47%
FCF(TTM)2.12
FCFY20.65%
OCF(TTM)3.39
OCFY33.05%
SpS9.19
BVpS15.72
TBVpS15.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | 15.01% | ||
| ROCE | 14.24% | ||
| ROIC | 11.25% | ||
| ROICexc | 12.12% | ||
| ROICexgc | 12.12% | ||
| OM | 25.15% | ||
| PM (TTM) | 25.66% | ||
| GM | 48.16% | ||
| FCFM | 23.01% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.16 | ||
| Cap/Depr | 166.82% | ||
| Cap/Sales | 13.81% | ||
| Interest Coverage | 20.65 | ||
| Cash Conversion | 110.15% | ||
| Profit Quality | 89.67% | ||
| Current Ratio | 3.73 | ||
| Quick Ratio | 3.36 | ||
| Altman-Z | 6.39 |
F-Score5
WACC9.54%
ROIC/WACC1.18
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)4.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-68.04%
EPS Next 2Y-33.05%
EPS Next 3Y-13.03%
EPS Next 5YN/A
Revenue 1Y (TTM)2.48%
Revenue growth 3Y28.22%
Revenue growth 5Y12.02%
Sales Q2Q%-39.94%
Revenue Next Year-35.71%
Revenue Next 2Y-26.62%
Revenue Next 3Y-20.13%
Revenue Next 5YN/A
EBIT growth 1Y-23.4%
EBIT growth 3YN/A
EBIT growth 5Y51.26%
EBIT Next Year-46.41%
EBIT Next 3Y-9.58%
EBIT Next 5YN/A
FCF growth 1Y-51.61%
FCF growth 3YN/A
FCF growth 5Y41.1%
OCF growth 1Y-26.34%
OCF growth 3YN/A
OCF growth 5Y50.91%