ARDMORE SHIPPING CORP (ASC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASC - MHY0207T1001 - Common Stock
11.68 USD
-0.2 (-1.68%)
11.68 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ASC. ASC was compared to 208 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.
In the past year ASC had a positive cash flow from operations.
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's Return On Assets of 3.98% is in line compared to the rest of the industry. ASC outperforms 56.73% of its industry peers.
ASC has a Return On Equity of 4.85%. This is comparable to the rest of the industry: ASC outperforms 42.31% of its industry peers.
ASC has a Return On Invested Capital of 4.51%. This is in the lower half of the industry: ASC underperforms 60.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASC is significantly below the industry average of 21.83%.
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 has a Profit Margin (10.29%) which is in line with its industry peers.
Looking at the Operating Margin, with a value of 14.28%, ASC is in line with its industry, outperforming 47.60% of the companies in the same industry.
In the last couple of years the Operating Margin of ASC has grown nicely.
Looking at the Gross Margin, with a value of 41.93%, ASC is in line with its industry, outperforming 50.48% 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%
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
Compared to 5 years ago, ASC has more shares outstanding
Compared to 1 year ago, ASC has an improved debt to assets ratio.
2.2 Solvency
ASC has an Altman-Z score of 3.01. This indicates that ASC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.01, ASC belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that ASC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, ASC is in the better half of the industry, outperforming 75.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.01 |
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.
With an excellent Current ratio value of 4.46, ASC belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
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 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.46 | ||
| Quick Ratio | 4.08 |
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
ASC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -28.97% yearly.
The Revenue is expected to decrease by -14.06% on average over the next years. This is quite bad
EPS Next Y-62.66%
EPS Next 2Y-37.39%
EPS Next 3Y-28.97%
EPS Next 5YN/A
Revenue Next Year-15.65%
Revenue Next 2Y-22.79%
Revenue Next 3Y-14.06%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings ratio is 12.84, which indicates a correct valuation of ASC.
ASC's Price/Earnings ratio is a bit cheaper when compared to the industry. ASC is cheaper than 64.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of ASC to the average of the S&P500 Index (27.19), we can say ASC is valued rather cheaply.
ASC is valuated reasonably with a Price/Forward Earnings ratio of 10.45.
Based on the Price/Forward Earnings ratio, ASC is valued a bit cheaper than the industry average as 73.56% of the companies are valued more expensively.
ASC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
61.54% of the companies in the same industry are more expensive than ASC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.13 |
4.3 Compensation for Growth
ASC's earnings are expected to decrease with -28.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-37.39%
EPS Next 3Y-28.97%
5. Dividend
5.1 Amount
ASC has a Yearly Dividend Yield of 2.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.91, ASC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, 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-37.39%
EPS Next 3Y-28.97%
11.68
-0.2 (-1.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners69%
Inst Owner Change0.07%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap475.38M
Revenue(TTM)405.78M
Net Income(TTM)31.82M
Analysts82.86
Price Target15.61 (33.65%)
Short Float %5.68%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend1.2
Dividend Growth(5Y)N/A
DP59.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0%
PT rev (3m)14.18%
EPS NQ rev (1m)16.04%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)4.72%
EPS NY rev (3m)10.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)64.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 10.45 | ||
| P/S | 1.54 | ||
| P/FCF | N/A | ||
| P/OCF | 6.06 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 7.13 |
EPS(TTM)0.91
EY7.79%
EPS(NY)1.12
Fwd EY9.57%
FCF(TTM)-1.07
FCFYN/A
OCF(TTM)1.93
OCFY16.49%
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 | 3.01 |
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-62.66%
EPS Next 2Y-37.39%
EPS Next 3Y-28.97%
EPS Next 5YN/A
Revenue 1Y (TTM)2.48%
Revenue growth 3Y28.22%
Revenue growth 5Y12.02%
Sales Q2Q%-39.94%
Revenue Next Year-15.65%
Revenue Next 2Y-22.79%
Revenue Next 3Y-14.06%
Revenue Next 5YN/A
EBIT growth 1Y-69.86%
EBIT growth 3YN/A
EBIT growth 5Y51.26%
EBIT Next Year-36.23%
EBIT Next 3Y-15.32%
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
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 4 / 10 to ARDMORE SHIPPING CORP (ASC). This can be considered as Fairly Valued.
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%.