ARDMORE SHIPPING CORP (ASC) Stock Fundamental Analysis
NYSE:ASC - New York Stock Exchange, Inc. - MHY0207T1001 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ASC. ASC was compared to 213 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 has a bad growth rate and is valued cheaply. This makes ASC very considerable 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.
Of the past 5 years ASC 4 years had a positive operating cash flow.
1.2 Ratios
ASC has a Return On Assets of 13.88%. This is amongst the best in the industry. ASC outperforms 91.08% of its industry peers.
Looking at the Return On Equity, with a value of 15.01%, ASC is in the better half of the industry, outperforming 71.36% of the companies in the same industry.
The Return On Invested Capital of ASC (11.25%) is better than 79.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASC is significantly below the industry average of 25.88%.
The last Return On Invested Capital (11.25%) 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 | 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 better Profit Margin (25.66%) than 77.00% of its industry peers.
Looking at the Operating Margin, with a value of 25.15%, ASC is in line with its industry, outperforming 59.62% of the companies in the same industry.
In the last couple of years the Operating Margin of ASC has grown nicely.
ASC has a Gross Margin (48.16%) 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 | 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
ASC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 6.34 indicates that ASC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.34, ASC belongs to the best of the industry, outperforming 92.49% of the companies in the same industry.
The Debt to FCF ratio of ASC is 0.24, which is an excellent value as it means it would take ASC, only 0.24 years of fcf income to pay off all of its debts.
ASC has a better Debt to FCF ratio (0.24) than 92.49% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that ASC is not too dependend on debt financing.
ASC has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. ASC outperforms 82.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 6.34 |
ROIC/WACC1.06
WACC10.59%
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.
The Current ratio of ASC (3.73) is better than 87.79% of its industry peers.
ASC has a Quick Ratio of 3.36. This indicates that ASC is financially healthy and has no problem in meeting its short term obligations.
ASC has a better Quick ratio (3.36) than 86.85% 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.
The Revenue has been growing slightly by 2.48% in the past 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
ASC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -22.76% yearly.
Based on estimates for the next years, ASC will show a decrease in Revenue. The Revenue will decrease by -9.75% on average per year.
EPS Next Y-71.08%
EPS Next 2Y-35.93%
EPS Next 3Y-22.76%
EPS Next 5YN/A
Revenue Next Year-35.77%
Revenue Next 2Y-23.69%
Revenue Next 3Y-9.75%
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 3.61, which indicates a rather cheap valuation of ASC.
Based on the Price/Earnings ratio, ASC is valued cheaper than 94.37% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. ASC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.80 indicates a reasonable valuation of ASC.
70.42% of the companies in the same industry are more expensive than ASC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. ASC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.61 | ||
| Fwd PE | 8.8 |
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 85.45% of the companies listed in the same industry.
90.14% of the companies in the same industry are more expensive than ASC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.85 | ||
| EV/EBITDA | 3.16 |
4.3 Compensation for Growth
The decent profitability rating of ASC may justify a higher PE ratio.
ASC's earnings are expected to decrease with -22.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-35.93%
EPS Next 3Y-22.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.96%, ASC is a good candidate for dividend investing.
ASC's Dividend Yield is a higher than the industry average which is at 7.05.
ASC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
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-35.93%
EPS Next 3Y-22.76%
NYSE:ASC (5/21/2025, 3:34:46 PM)
10.3
-0.1 (-0.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners70.96%
Inst Owner Change-3.86%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap417.15M
Analysts78
Price Target15.81 (53.5%)
Short Float %7.58%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
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)-4.91%
PT rev (3m)-16.67%
EPS NQ rev (1m)-34.19%
EPS NQ rev (3m)-43.5%
EPS NY rev (1m)-42.31%
EPS NY rev (3m)-44.09%
Revenue NQ rev (1m)2.94%
Revenue NQ rev (3m)-8.95%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-6.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.61 | ||
| Fwd PE | 8.8 | ||
| P/S | 1.12 | ||
| P/FCF | 4.85 | ||
| P/OCF | 3.03 | ||
| P/B | 0.65 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 3.16 |
EPS(TTM)2.85
EY27.67%
EPS(NY)1.17
Fwd EY11.36%
FCF(TTM)2.12
FCFY20.6%
OCF(TTM)3.4
OCFY32.97%
SpS9.22
BVpS15.76
TBVpS15.76
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 | 6.34 |
F-Score5
WACC10.59%
ROIC/WACC1.06
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-71.08%
EPS Next 2Y-35.93%
EPS Next 3Y-22.76%
EPS Next 5YN/A
Revenue 1Y (TTM)2.48%
Revenue growth 3Y28.22%
Revenue growth 5Y12.02%
Sales Q2Q%-39.94%
Revenue Next Year-35.77%
Revenue Next 2Y-23.69%
Revenue Next 3Y-9.75%
Revenue Next 5YN/A
EBIT growth 1Y-23.4%
EBIT growth 3YN/A
EBIT growth 5Y51.26%
EBIT Next Year-36.89%
EBIT Next 3Y-9.21%
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%