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 208 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 bad growth rate and is valued cheaply. This makes ASC very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ASC was profitable.
In the past year ASC had a positive cash flow from operations.
In multiple years ASC reported negative net income over the last 5 years.
ASC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ASC's Return On Assets of 13.88% is amongst the best of the industry. ASC outperforms 92.31% of its industry peers.
With a decent Return On Equity value of 15.01%, ASC is doing good in the industry, outperforming 74.04% of the companies in the same industry.
The Return On Invested Capital of ASC (11.25%) is better than 84.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASC is significantly below the industry average of 23.99%.
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 Profit Margin of 25.66%. This is in the better half of the industry: ASC outperforms 77.88% of its industry peers.
ASC has a Operating Margin (25.15%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ASC has grown nicely.
Looking at the Gross Margin, with a value of 48.16%, ASC is in line with its industry, outperforming 56.73% of the companies in the same industry.
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
ASC has more shares outstanding than it did 5 years ago.
ASC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.53 indicates that ASC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.53, ASC belongs to the best of the industry, outperforming 91.35% 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.
Looking at the Debt to FCF ratio, with a value of 0.24, ASC belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
ASC has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
ASC has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. ASC outperforms 82.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 6.53 |
ROIC/WACC1.23
WACC9.17%
2.3 Liquidity
A Current Ratio of 3.73 indicates that ASC has no problem at all paying its short term obligations.
The Current ratio of ASC (3.73) is better than 89.42% 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.
Looking at the Quick ratio, with a value of 3.36, ASC belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
| 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.
ASC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.02% yearly.
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 -13.03% 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 -20.13% on average per year.
EPS Next Y-68.04%
EPS Next 2Y-33.05%
EPS Next 3Y-13.03%
EPS Next 5YN/A
Revenue Next Year-52.62%
Revenue Next 2Y-32.2%
Revenue Next 3Y-20.13%
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
ASC is valuated cheaply with a Price/Earnings ratio of 3.78.
Based on the Price/Earnings ratio, ASC is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.24. ASC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.44, the valuation of ASC can be described as reasonable.
Based on the Price/Forward Earnings ratio, ASC is valued a bit cheaper than 72.60% of the companies in the same industry.
ASC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.78 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASC is valued cheaply inside the industry as 85.58% of the companies are valued more expensively.
89.90% 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 | 5.1 | ||
| EV/EBITDA | 3.29 |
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 -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 3.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.34, ASC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, ASC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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%
10.78
+0.13 (+1.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners69.54%
Inst Owner Change7.88%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap437.88M
Analysts84.44
Price Target13.43 (24.58%)
Short Float %7.5%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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)1
Avg Revenue beat(2)5.81%
Min Revenue beat(2)-19.84%
Max Revenue beat(2)31.46%
Revenue beat(4)3
Avg Revenue beat(4)16.87%
Min Revenue beat(4)-19.84%
Max Revenue beat(4)31.46%
Revenue beat(8)7
Avg Revenue beat(8)26.52%
Revenue beat(12)11
Avg Revenue beat(12)35.91%
Revenue beat(16)15
Avg Revenue beat(16)48.43%
PT rev (1m)-20.8%
PT rev (3m)-15.05%
EPS NQ rev (1m)-9.73%
EPS NQ rev (3m)-39.93%
EPS NY rev (1m)5.44%
EPS NY rev (3m)-36.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.26%
Revenue NY rev (1m)-26.3%
Revenue NY rev (3m)-26.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.78 | ||
| Fwd PE | 8.44 | ||
| P/S | 1.17 | ||
| P/FCF | 5.1 | ||
| P/OCF | 3.18 | ||
| P/B | 0.69 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 3.29 |
EPS(TTM)2.85
EY26.44%
EPS(NY)1.28
Fwd EY11.85%
FCF(TTM)2.12
FCFY19.63%
OCF(TTM)3.39
OCFY31.41%
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 | 6.53 |
F-Score5
WACC9.17%
ROIC/WACC1.23
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-52.62%
Revenue Next 2Y-32.2%
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%