ARDMORE SHIPPING CORP (ASC) Stock Fundamental Analysis
NYSE:ASC - MHY0207T1001 - Common Stock
11.62 USD
-0.08 (-0.68%)
11.7 USD
+0.08 (+0.69%)
Overall ASC gets a fundamental rating of 6 out of 10. We evaluated ASC against 209 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 has a valuation in line with the averages, 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
The Return On Assets of ASC (6.10%) is better than 67.46% of its industry peers.
ASC's Return On Equity of 6.65% is in line compared to the rest of the industry. ASC outperforms 48.80% of its industry peers.
ASC has a Return On Invested Capital (6.39%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ASC is significantly below the industry average of 21.91%.
The last Return On Invested Capital (6.39%) 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 | 6.1% | ||
| ROE | 6.65% | ||
| ROIC | 6.39% |
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
With a decent Profit Margin value of 13.25%, ASC is doing good in the industry, outperforming 62.20% of the companies in the same industry.
Looking at the Operating Margin, with a value of 16.80%, ASC is in line with its industry, outperforming 48.33% of the companies in the same industry.
ASC's Operating Margin has improved in the last couple of years.
The Gross Margin of ASC (43.47%) is comparable to the rest of the industry.
ASC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.8% | ||
| PM (TTM) | 13.25% | ||
| GM | 43.47% |
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.
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
An Altman-Z score of 6.12 indicates that ASC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.12, ASC belongs to the best of the industry, outperforming 89.95% of the companies in the same industry.
ASC has a debt to FCF ratio of 0.31. This is a very positive value and a sign of high solvency as it would only need 0.31 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.31, ASC belongs to the best of the industry, outperforming 92.82% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that ASC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.04, ASC belongs to the top of the industry, outperforming 80.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.31 | ||
| Altman-Z | 6.12 |
ROIC/WACC0.69
WACC9.29%
2.3 Liquidity
A Current Ratio of 3.88 indicates that ASC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.88, ASC belongs to the best of the industry, outperforming 87.56% of the companies in the same industry.
A Quick Ratio of 3.56 indicates that ASC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.56, ASC belongs to the top of the industry, outperforming 87.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.56 |
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.
The Revenue has been growing by 12.02% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to decrease by -10.54% on average over the next years. This is quite bad
Based on estimates for the next years, ASC will show a very negative growth in Revenue. The Revenue will decrease by -16.76% on average per year.
EPS Next Y-66.16%
EPS Next 2Y-31.95%
EPS Next 3Y-10.54%
EPS Next 5YN/A
Revenue Next Year-50.66%
Revenue Next 2Y-29.76%
Revenue Next 3Y-16.76%
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
With a Price/Earnings ratio of 4.08, the valuation of ASC can be described as very cheap.
ASC's Price/Earnings ratio is rather cheap when compared to the industry. ASC is cheaper than 97.61% of the companies in the same industry.
ASC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.13.
Based on the Price/Forward Earnings ratio of 8.80, the valuation of ASC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASC indicates a somewhat cheap valuation: ASC is cheaper than 75.60% of the companies listed in the same industry.
ASC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.08 | ||
| Fwd PE | 8.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASC is valued a bit cheaper than the industry average as 74.64% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ASC is valued cheaper than 89.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.82 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
A cheap valuation may be justified as ASC's earnings are expected to decrease with -10.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-31.95%
EPS Next 3Y-10.54%
5. Dividend
5.1 Amount
ASC has a Yearly Dividend Yield of 3.25%.
Compared to an average industry Dividend Yield of 6.06, ASC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, ASC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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
74.72% of the earnings are spent on dividend by ASC. This is not a sustainable payout ratio.
DP74.72%
EPS Next 2Y-31.95%
EPS Next 3Y-10.54%
11.62
-0.08 (-0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners69.6%
Inst Owner Change9.82%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap472.82M
Analysts84.44
Price Target13.33 (14.72%)
Short Float %7.1%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend1.2
Dividend Growth(5Y)N/A
DP74.72%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.38%
Min EPS beat(2)6.63%
Max EPS beat(2)28.13%
EPS beat(4)2
Avg EPS beat(4)0.69%
Min EPS beat(4)-19.5%
Max EPS beat(4)28.13%
EPS beat(8)5
Avg EPS beat(8)4%
EPS beat(12)9
Avg EPS beat(12)3.81%
EPS beat(16)11
Avg EPS beat(16)8.3%
Revenue beat(2)1
Avg Revenue beat(2)19.6%
Min Revenue beat(2)-19.84%
Max Revenue beat(2)59.03%
Revenue beat(4)3
Avg Revenue beat(4)24.7%
Min Revenue beat(4)-19.84%
Max Revenue beat(4)59.03%
Revenue beat(8)7
Avg Revenue beat(8)29.34%
Revenue beat(12)11
Avg Revenue beat(12)34.27%
Revenue beat(16)15
Avg Revenue beat(16)47.08%
PT rev (1m)-0.76%
PT rev (3m)-15.7%
EPS NQ rev (1m)32.79%
EPS NQ rev (3m)67.44%
EPS NY rev (1m)5.91%
EPS NY rev (3m)17.01%
Revenue NQ rev (1m)2.49%
Revenue NQ rev (3m)-26.35%
Revenue NY rev (1m)4.14%
Revenue NY rev (3m)-23.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.08 | ||
| Fwd PE | 8.8 | ||
| P/S | 1.46 | ||
| P/FCF | 5.82 | ||
| P/OCF | 4.71 | ||
| P/B | 0.73 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)2.85
EY24.53%
EPS(NY)1.32
Fwd EY11.36%
FCF(TTM)2
FCFY17.19%
OCF(TTM)2.47
OCFY21.22%
SpS7.97
BVpS15.88
TBVpS15.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | 6.65% | ||
| ROCE | 8.09% | ||
| ROIC | 6.39% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 6.9% | ||
| OM | 16.8% | ||
| PM (TTM) | 13.25% | ||
| GM | 43.47% | ||
| FCFM | 25.08% |
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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.31 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 61.03% | ||
| Cap/Sales | 5.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.13% | ||
| Profit Quality | 189.23% | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.56 | ||
| Altman-Z | 6.12 |
F-Score5
WACC9.29%
ROIC/WACC0.69
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-66.16%
EPS Next 2Y-31.95%
EPS Next 3Y-10.54%
EPS Next 5YN/A
Revenue 1Y (TTM)2.48%
Revenue growth 3Y28.22%
Revenue growth 5Y12.02%
Sales Q2Q%-39.94%
Revenue Next Year-50.66%
Revenue Next 2Y-29.76%
Revenue Next 3Y-16.76%
Revenue Next 5YN/A
EBIT growth 1Y-62.51%
EBIT growth 3YN/A
EBIT growth 5Y51.26%
EBIT Next Year-43.65%
EBIT Next 3Y-5.15%
EBIT Next 5YN/A
FCF growth 1Y-59.21%
FCF growth 3YN/A
FCF growth 5Y41.1%
OCF growth 1Y-53.15%
OCF growth 3YN/A
OCF growth 5Y50.91%