HIMALAYA SHIPPING LTD (HSHP) Stock Fundamental Analysis
NYSE:HSHP - New York Stock Exchange, Inc. - BMG4660A1036 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to HSHP. HSHP was compared to 32 industry peers in the Marine Transportation industry. Both the profitability and financial health of HSHP have multiple concerns. HSHP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HSHP had positive earnings in the past year.
In the past year HSHP had a positive cash flow from operations.
1.2 Ratios
HSHP's Return On Assets of 2.39% is on the low side compared to the rest of the industry. HSHP is outperformed by 62.50% of its industry peers.
Looking at the Return On Equity, with a value of 13.60%, HSHP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
HSHP has a Return On Invested Capital of 6.23%. This is comparable to the rest of the industry: HSHP outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 13.6% | ||
| ROIC | 6.23% |
ROA(3y)0.51%
ROA(5y)N/A
ROE(3y)4.12%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HSHP has a Profit Margin (17.03%) which is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 53.91%, HSHP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Gross Margin of HSHP (79.40%) is better than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.91% | ||
| PM (TTM) | 17.03% | ||
| GM | 79.4% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HSHP is destroying value.
HSHP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, HSHP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that HSHP is in the distress zone and has some risk of bankruptcy.
HSHP has a Altman-Z score (0.74) which is comparable to the rest of the industry.
HSHP has a Debt/Equity ratio of 4.46. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.46, HSHP is not doing good in the industry: 90.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.82
WACC7.61%
2.3 Liquidity
HSHP has a Current Ratio of 0.75. This is a bad value and indicates that HSHP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.75, HSHP is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that HSHP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, HSHP is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
HSHP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1500.00%, which is quite impressive.
Looking at the last year, HSHP shows a very strong growth in Revenue. The Revenue has grown by 236.16%.
EPS 1Y (TTM)1500%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-81.82%
Revenue 1Y (TTM)236.16%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%61.55%
3.2 Future
HSHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.02% yearly.
Based on estimates for the next years, HSHP will show a quite strong growth in Revenue. The Revenue will grow by 16.59% on average per year.
EPS Next Y19.53%
EPS Next 2Y71.79%
EPS Next 3Y64.02%
EPS Next 5YN/A
Revenue Next Year7.17%
Revenue Next 2Y15.94%
Revenue Next 3Y16.59%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.25, which indicates a very decent valuation of HSHP.
HSHP's Price/Earnings ratio is in line with the industry average.
HSHP is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
HSHP is valuated reasonably with a Price/Forward Earnings ratio of 9.41.
62.50% of the companies in the same industry are more expensive than HSHP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, HSHP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSHP indicates a slightly more expensive valuation: HSHP is more expensive than 71.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.19 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HSHP's earnings are expected to grow with 64.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y71.79%
EPS Next 3Y64.02%
5. Dividend
5.1 Amount
HSHP has a Yearly Dividend Yield of 7.84%, which is a nice return.
HSHP's Dividend Yield is a higher than the industry average which is at 10.27.
Compared to an average S&P500 Dividend Yield of 2.43, HSHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
5.2 History
HSHP is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
98.05% of the earnings are spent on dividend by HSHP. This is not a sustainable payout ratio.
DP98.05%
EPS Next 2Y71.79%
EPS Next 3Y64.02%
NYSE:HSHP (5/6/2025, 10:22:06 AM)
5.4
-0.05 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners20.72%
Inst Owner ChangeN/A
Ins Owners0.88%
Ins Owner ChangeN/A
Market Cap251.37M
Analysts81.54
Price Target8.54 (58.15%)
Short Float %2.89%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
Yearly Dividend0.47
Dividend Growth(5Y)N/A
DP98.05%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-49.81%
Min EPS beat(2)-82.17%
Max EPS beat(2)-17.44%
EPS beat(4)0
Avg EPS beat(4)-39.98%
Min EPS beat(4)-82.17%
Max EPS beat(4)-17.44%
EPS beat(8)1
Avg EPS beat(8)-102.59%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.43%
Min Revenue beat(2)-8.33%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-8.33%
Max Revenue beat(4)5.08%
Revenue beat(8)2
Avg Revenue beat(8)11.37%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.97%
PT rev (3m)-9.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-411.12%
EPS NY rev (1m)0%
EPS NY rev (3m)-47.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-35.41%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)-12.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.41 | ||
| P/S | 2.03 | ||
| P/FCF | N/A | ||
| P/OCF | 4.5 | ||
| P/B | 1.62 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 10.19 |
EPS(TTM)0.48
EY8.89%
EPS(NY)0.57
Fwd EY10.63%
FCF(TTM)-5.53
FCFYN/A
OCF(TTM)1.2
OCFY22.21%
SpS2.65
BVpS3.32
TBVpS3.32
PEG (NY)0.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 13.6% | ||
| ROCE | 7.89% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 6.38% | ||
| OM | 53.91% | ||
| PM (TTM) | 17.03% | ||
| GM | 79.4% | ||
| FCFM | N/A |
ROA(3y)0.51%
ROA(5y)N/A
ROE(3y)4.12%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.41 | ||
| Cap/Depr | 1182.5% | ||
| Cap/Sales | 253.32% | ||
| Interest Coverage | 1.65 | ||
| Cash Conversion | 59.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.74 |
F-Score6
WACC7.61%
ROIC/WACC0.82
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1500%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-81.82%
EPS Next Y19.53%
EPS Next 2Y71.79%
EPS Next 3Y64.02%
EPS Next 5YN/A
Revenue 1Y (TTM)236.16%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%61.55%
Revenue Next Year7.17%
Revenue Next 2Y15.94%
Revenue Next 3Y16.59%
Revenue Next 5YN/A
EBIT growth 1Y355.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year47.09%
EBIT Next 3Y33.56%
EBIT Next 5YN/A
FCF growth 1Y36.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y762.53%
OCF growth 3YN/A
OCF growth 5YN/A