ARDMORE SHIPPING CORP (ASC)
MHY0207T1001 - Common Stock
Overall ASC gets a fundamental rating of 6 out of 10. We evaluated ASC against 213 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 is valued quite cheap, but it does not seem to be growing. These ratings would make ASC suitable for value investing!
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.
In multiple years ASC reported negative net income over the last 5 years.
Of the past 5 years ASC 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ASC (16.42%) is better than 81.13% of its industry peers.
ASC has a Return On Equity of 19.75%. This is comparable to the rest of the industry: ASC outperforms 58.96% of its industry peers.
The Return On Invested Capital of ASC (15.40%) is better than 76.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.42% | ||
| ROE | 19.75% | ||
| ROIC | 15.4% |
ROA(3y)9.94%
ROA(5y)5.21%
ROE(3y)11.61%
ROE(5y)5.19%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ASC has a Profit Margin of 28.66%. This is in the better half of the industry: ASC outperforms 68.40% of its industry peers.
ASC has a Operating Margin of 32.36%. This is comparable to the rest of the industry: ASC outperforms 58.96% of its industry peers.
ASC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 51.60%, ASC is in line with its industry, outperforming 51.42% of the companies in the same industry.
ASC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.36% | ||
| PM (TTM) | 28.66% | ||
| GM | 51.6% |
OM growth 3Y56.45%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.17%
GM growth 5Y19.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ASC is creating value.
ASC has more shares outstanding than it did 1 year ago.
ASC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ASC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.85 indicates that ASC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.85, ASC belongs to the top of the industry, outperforming 87.74% of the companies in the same industry.
ASC has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
ASC has a better Debt to FCF ratio (0.67) than 87.26% of its industry peers.
ASC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ASC (0.14) is better than 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 4.85 |
ROIC/WACC1.85
WACC8.34%
2.3 Liquidity
ASC has a Current Ratio of 3.75. This indicates that ASC is financially healthy and has no problem in meeting its short term obligations.
ASC has a Current ratio of 3.75. This is amongst the best in the industry. ASC outperforms 85.38% of its industry peers.
A Quick Ratio of 3.38 indicates that ASC has no problem at all paying its short term obligations.
The Quick ratio of ASC (3.38) is better than 83.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.75 | ||
| Quick Ratio | 3.38 |
3. Growth
3.1 Past
ASC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.59%.
The Earnings Per Share has been growing by 257.00% on average over the past years. This is a very strong growth
ASC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.18%.
ASC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.50% yearly.
EPS 1Y (TTM)-24.59%
EPS 3Y257%
EPS 5YN/A
EPS growth Q2Q-51.54%
Revenue 1Y (TTM)-11.18%
Revenue growth 3Y21.62%
Revenue growth 5Y13.5%
Revenue growth Q2Q-25.54%
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 -14.34% yearly.
ASC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.05% yearly.
EPS Next Y10.38%
EPS Next 2Y-6.12%
EPS Next 3Y-14.34%
EPS Next 5YN/A
Revenue Next Year6.86%
Revenue Next 2Y-4.17%
Revenue Next 3Y-6.05%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.77, the valuation of ASC can be described as very cheap.
Based on the Price/Earnings ratio, ASC is valued cheaply inside the industry as 83.96% of the companies are valued more expensively.
ASC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.80.
With a Price/Forward Earnings ratio of 5.23, the valuation of ASC can be described as very cheap.
ASC's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASC is cheaper than 91.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. ASC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.77 | ||
| Fwd PE | 5.23 |
4.2 Price Multiples
ASC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ASC is cheaper than 68.40% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ASC is valued cheaply inside the industry as 87.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.88 | ||
| EV/EBITDA | 4.43 |
4.3 Compensation for Growth
ASC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A cheap valuation may be justified as ASC's earnings are expected to decrease with -14.34% in the coming years.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y-6.12%
EPS Next 3Y-14.34%
5. Dividend
5.1 Amount
ASC has a Yearly Dividend Yield of 5.59%, which is a nice return.
Compared to an average industry Dividend Yield of 5.80, ASC pays a bit more dividend than its industry peers.
ASC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
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 44.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.56%
EPS Next 2Y-6.12%
EPS Next 3Y-14.34%
ARDMORE SHIPPING CORP
NYSE:ASC (4/19/2024, 12:58:33 PM)
15.76
+0.17 (+1.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap654.51M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.77 | ||
| Fwd PE | 5.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.42% | ||
| ROE | 19.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.36% | ||
| PM (TTM) | 28.66% | ||
| GM | 51.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.75 | ||
| Quick Ratio | 3.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-24.59%
EPS 3Y257%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.18%
Revenue growth 3Y21.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 5Y
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