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 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 has a bad growth rate and is valued cheaply. These ratings could make ASC a good candidate 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.
Of the past 5 years ASC 4 years had a positive operating cash flow.
1.2 Ratios
ASC's Return On Assets of 13.88% is amongst the best of the industry. ASC outperforms 91.55% of its industry peers.
ASC has a better Return On Equity (15.01%) than 73.24% of its industry peers.
ASC's Return On Invested Capital of 11.25% is amongst the best of the industry. ASC outperforms 82.16% of its industry peers.
ASC had an Average Return On Invested Capital over the past 3 years of 16.40%. This is significantly below the industry average of 23.55%.
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 77.93% of its industry peers.
With a Operating Margin value of 25.15%, ASC perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
ASC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.16%, ASC is in line with its industry, outperforming 55.40% 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.
ASC has less 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 5.97 indicates that ASC is not in any danger for bankruptcy at the moment.
ASC has a Altman-Z score of 5.97. This is amongst the best in the industry. ASC outperforms 91.08% of its industry peers.
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 92.96% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that ASC is not too dependend on debt financing.
ASC has a better Debt to Equity ratio (0.03) than 81.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 5.97 |
ROIC/WACC1.17
WACC9.65%
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 89.20% 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's Quick ratio of 3.36 is amongst the best of the industry. ASC outperforms 88.26% 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.
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
Based on estimates for the next years, ASC will show a very negative growth in Earnings Per Share. The EPS will decrease by -22.76% on average per year.
ASC is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -20.13% yearly.
EPS Next Y-71.08%
EPS Next 2Y-35.93%
EPS Next 3Y-22.76%
EPS Next 5YN/A
Revenue Next Year-35.71%
Revenue Next 2Y-26.62%
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
With a Price/Earnings ratio of 3.38, the valuation of ASC can be described as very cheap.
97.65% of the companies in the same industry are more expensive than ASC, based on the Price/Earnings ratio.
ASC is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
ASC is valuated reasonably with a Price/Forward Earnings ratio of 8.23.
ASC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ASC is cheaper than 72.77% 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 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.38 | ||
| Fwd PE | 8.23 |
4.2 Price Multiples
ASC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASC is cheaper than 89.20% of the companies in the same industry.
91.08% 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 | 4.55 | ||
| EV/EBITDA | 2.9 |
4.3 Compensation for Growth
ASC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ASC's earnings are expected to decrease with -22.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-35.93%
EPS Next 3Y-22.76%
5. Dividend
5.1 Amount
ASC has a Yearly Dividend Yield of 7.14%, which is a nice return.
Compared to an average industry Dividend Yield of 6.74, ASC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, ASC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
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%
9.63
+0.04 (+0.42%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners70.96%
Inst Owner Change-3.82%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap391.17M
Analysts84.44
Price Target16.96 (76.12%)
Short Float %6.19%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
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)7.26%
PT rev (3m)1.99%
EPS NQ rev (1m)-33.45%
EPS NQ rev (3m)-33.45%
EPS NY rev (1m)-42.31%
EPS NY rev (3m)-34.48%
Revenue NQ rev (1m)-16.26%
Revenue NQ rev (3m)-26.57%
Revenue NY rev (1m)-1.27%
Revenue NY rev (3m)-7.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.38 | ||
| Fwd PE | 8.23 | ||
| P/S | 1.05 | ||
| P/FCF | 4.55 | ||
| P/OCF | 2.84 | ||
| P/B | 0.61 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 2.9 |
EPS(TTM)2.85
EY29.6%
EPS(NY)1.17
Fwd EY12.15%
FCF(TTM)2.12
FCFY21.97%
OCF(TTM)3.39
OCFY35.16%
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 | 5.97 |
F-Score5
WACC9.65%
ROIC/WACC1.17
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-35.71%
Revenue Next 2Y-26.62%
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%