Taking everything into account, ASC scores 4 out of 10 in our fundamental rating. ASC was compared to 207 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 does not seem to be growing, but still is valued expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ASC was profitable.
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.
Of the past 5 years ASC 4 years had a positive operating cash flow.

1.2 Ratios

ASC has a Return On Assets (3.98%) which is comparable to the rest of the industry.
ASC has a Return On Equity (4.85%) which is comparable to the rest of the industry.
The Return On Invested Capital of ASC (4.51%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ASC is significantly below the industry average of 21.94%.
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

The Profit Margin of ASC (10.29%) is comparable to the rest of the industry.
With a Operating Margin value of 14.28%, ASC perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
ASC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.93%, ASC is in line with its industry, outperforming 50.72% of the companies in the same 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ASC is creating value.
ASC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ASC has been increased compared to 5 years ago.
ASC has a better debt/assets ratio than last year.

2.2 Solvency

ASC has an Altman-Z score of 3.06. This indicates that ASC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ASC (3.06) is better than 81.64% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that ASC is not too dependend on debt financing.
ASC has a Debt to Equity ratio of 0.18. This is in the better half of the industry: ASC outperforms 74.88% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.18
Debt/FCF	N/A
Altman-Z	3.06

ROIC/WACC0.51

WACC8.82%

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 better Current ratio (4.46) than 86.96% of its industry peers.
A Quick Ratio of 4.08 indicates that ASC has no problem at all paying its short term obligations.
The Quick ratio of ASC (4.08) is better than 85.99% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4.46
Quick Ratio	4.08

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for ASC have decreased strongly by -68.07% in the last 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)-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 -37.49% on average over the next years. This is quite bad
ASC is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -13.35% yearly.

EPS Next Y-63.26%

EPS Next 2Y-47.2%

EPS Next 3Y-37.49%

EPS Next 5YN/A

Revenue Next Year-15.65%

Revenue Next 2Y-31.59%

Revenue Next 3Y-13.35%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.47, the valuation of ASC can be described as correct.
65.70% of the companies in the same industry are more expensive than ASC, based on the Price/Earnings ratio.
ASC is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.43, the valuation of ASC can be described as correct.
ASC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, ASC is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	13.47
Fwd PE	15.43

4.2 Price Multiples

ASC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ASC is cheaper than 62.80% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	7.28

4.3 Compensation for Growth

ASC's earnings are expected to decrease with -37.49% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-47.2%

EPS Next 3Y-37.49%

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5. Dividend

5.1 Amount

ASC has a Yearly Dividend Yield of 2.53%.
Compared to an average industry Dividend Yield of 3.73, ASC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.82, ASC pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	2.53%

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-47.2%

EPS Next 3Y-37.49%

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ARDMORE SHIPPING CORP / ASC FAQ

What is the ChartMill fundamental rating of ARDMORE SHIPPING CORP (ASC) stock?

ChartMill assigns a fundamental rating of 4 / 10 to ASC.

Can you provide the valuation status for ARDMORE SHIPPING CORP?

ChartMill assigns a valuation rating of 3 / 10 to ARDMORE SHIPPING CORP (ASC). This can be considered as Overvalued.

Can you provide the profitability details for ARDMORE SHIPPING CORP?

ARDMORE SHIPPING CORP (ASC) has a profitability rating of 4 / 10.

How financially healthy is ARDMORE SHIPPING CORP?

The financial health rating of ARDMORE SHIPPING CORP (ASC) is 7 / 10.

Is the dividend of ARDMORE SHIPPING CORP sustainable?

The dividend rating of ARDMORE SHIPPING CORP (ASC) is 3 / 10 and the dividend payout ratio is 59.21%.