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Ardmore Shipping Corp (ASC)
:ASC
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Ardmore Shipping
(NYSE:ASC)
71Outperform
Ardmore Shipping (ASC) vs. S&P 500 (SPY)
Market Cap
$385.94M
Dividend Yield9.94%
Average Volume (3M)778.01K
Price to Earnings (P/E)3.1
Beta (1Y)-0.18
Revenue Growth46.10%
EPS GrowthN/A
CountryUS
Employees834
SectorIndustrials
Sector Strength72
IndustryTransportation
Share Statistics
EPS (TTM)3.06
Shares Outstanding40,455,240
10 Day Avg. Volume801,438
30 Day Avg. Volume778,010
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.98
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.50Price Target Upside31.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Ardmore Shipping Business Overview & Revenue Model
Company DescriptionArdmore Shipping Corp. engages in the ocean transportation of petroleum and chemical products in international trade through the ownership and operation of a fleet of tankers. It provides shipping services through voyage charters, time charters, and commercial pools. The company was founded by Anthony Gurnee on May 14, 2013 and is headquartered in Pembroke, Bermuda.
How the Company Makes MoneyArdmore Shipping makes money through the chartering of its tanker vessels to customers seeking transportation for petroleum products and chemicals. The company earns revenue primarily through time charters and spot market voyages, where customers pay Ardmore for the use of its vessels over a specified period or for a specific voyage, respectively. The charter rates depend on market conditions, vessel availability, and the duration of the charter. Partnerships with major oil companies and traders, along with strategic fleet management and operational efficiency, contribute significantly to Ardmore's earnings.
Ardmore Shipping Financial Statement Overview
Summary
Ardmore Shipping demonstrates strong financial health with solid profitability, effective debt management, and robust cash generation. The company has seen improvements in profitability margins, a decrease in debt, and an increase in stockholders' equity, reflecting overall financial stability. The decline in free cash flow due to higher capital expenditures is a point of concern but indicates strategic investments for future growth.Income Statement
Ardmore Shipping has shown a strong performance in recent years, with significant improvements in profitability. The gross profit margin has improved to 38.54% in 2024 from 38.73% in 2023, and the net profit margin has also increased to 32.79% from 29.50% in the same period. Revenue growth was modest at 2.48% in 2024 compared to the previous year, indicating stable demand. The EBIT and EBITDA margins are healthy at 31.63% and 43.98%, respectively, indicating strong operational efficiency.78
Positive
Balance Sheet
The company's balance sheet shows a solid equity base with an equity ratio of 90.16% in 2024, highlighting financial stability. The debt-to-equity ratio has significantly decreased to 0.07 from 0.16 in 2023, reflecting effective debt management. ROE improved to 20.94%, underscoring efficient use of equity to generate profits. The reduction in total debt and increase in stockholders' equity suggest a strengthening financial position.85
Very Positive
Cash Flow
Ardmore Shipping's cash flow performance is robust, with a high operating cash flow to net income ratio of 1.20 in 2024, indicating strong cash generation capability. However, free cash flow declined by 26.08% from the previous year due to higher capital expenditures. The free cash flow to net income ratio remains healthy at 0.75, demonstrating good cash profitability despite the decrease in free cash flow.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 405.78M | 395.98M | 445.74M | 192.48M | 220.06M | Gross Profit |
| 156.33M | 153.37M | 195.53M | 4.44M | 99.05M | EBIT |
| 128.29M | 155.95M | 159.93M | -19.87M | 18.88M | EBITDA |
| 178.39M | 157.85M | 187.83M | 11.83M | 50.63M | Net Income Common Stockholders |
| 133.01M | 116.81M | 138.45M | -36.52M | -6.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 46.99M | 46.80M | 50.57M | 55.45M | 58.37M | Total Assets |
| 704.80M | 690.95M | 723.86M | 724.53M | 752.01M | Total Debt |
| 44.24M | 93.99M | 184.62M | 372.55M | 409.71M | Net Debt |
| -2.75M | 47.18M | 134.05M | 317.10M | 351.35M | Total Liabilities |
| 69.38M | 116.51M | 217.42M | 395.53M | 431.67M | Stockholders Equity |
| 635.42M | 574.44M | 506.44M | 329.00M | 320.33M |
| Cash Flow | Free Cash Flow | |||
| 99.22M | 134.22M | 120.40M | -5.52M | 25.19M | Operating Cash Flow |
| 160.25M | 159.61M | 124.21M | -2.89M | 46.09M | Investing Cash Flow |
| -32.97M | -26.84M | 35.41M | 1.63M | -20.99M | Financing Cash Flow |
| -127.09M | -136.54M | -164.50M | -1.66M | -18.46M |
Ardmore Shipping Technical Analysis
Negative
9.54
Price Trends
11.17
Negative
11.88
Negative
15.51
Negative
Market Momentum
-0.47
Negative
36.70
Neutral
64.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASC, the sentiment is Negative. The current price of 9.54 is below the 20-day moving average (MA) of 9.98, below the 50-day MA of 11.17, and below the 200-day MA of 15.51, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 36.70 is Neutral, neither overbought nor oversold. The STOCH value of 64.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASC.
Ardmore Shipping Risk Analysis
Ardmore Shipping disclosed 67 risk factors in its most recent earnings report. Ardmore Shipping reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ardmore Shipping Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.26B | 3.29 | 23.93% | 2.73% | -16.00% | -23.43% | |
73 Outperform | $1.90B | 2.92 | 24.68% | 4.16% | -8.16% | 15.26% | |
73 Outperform | $1.65B | 9.10 | 17.56% | 9.29% | 2.11% | 13.10% | |
71 Outperform | $385.94M | 3.13 | 21.87% | 9.94% | 46.10% | ― | |
69 Neutral | $1.15B | 3.26 | 12.41% | 0.51% | -1.61% | -3.33% | |
63 Neutral | $1.62B | 4.00 | 23.33% | 17.20% | -11.21% | -25.50% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% |
* Industrials Sector Average
Performance Comparison
ASC
Ardmore Shipping
9.54
-5.86
-38.05%
DHT
DHT Holdings
10.20
0.28
2.82%
NMM
Navios Maritime Partners
38.53
-3.79
-8.96%
STNG
Scorpio Tankers
38.07
-31.28
-45.10%
TNK
Teekay Tankers
35.92
-15.41
-30.02%
INSW
International Seaways
32.85
-14.06
-29.97%
Ardmore Shipping Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -16.61% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Ardmore Shipping Corporation's strong financial performance, operational efficiencies, and strategic initiatives, despite facing market volatility and geopolitical challenges. The company's advancements in technology and strategic fleet management were notable positives.Highlights
Strong Financial Performance
Ardmore Shipping Corporation reported adjusted earnings of $120 million or $2.84 per share for the full year, and $10.3 million or $0.25 per share for the fourth quarter.
Share Repurchase and Dividend
Repurchased 4% of shares during the fourth quarter at an average price of $11.49 and declared a quarterly cash dividend of $0.08 per share.
Operational Efficiency
Achieved low cash breakeven levels of $11,500 per day, positioning the company to benefit from various market scenarios.
Technological Advancements
Implemented AI and digitalization tools to enhance performance, achieving annual savings in excess of $5 million with returns over 100%.
Strategic Fleet Management
Executed a successful ship swap, selling an older vessel and acquiring a more efficient and versatile newer ship.
Lowlights
Market Volatility
Experienced downward volatility in rates during the fourth quarter, although they remain strong overall.
Geopolitical and Regulatory Challenges
Faced challenges due to geopolitical disruptions, sanctions, and the complex regulatory landscape.
Potential Impact of Tariffs
Consideration of potential shifts in trade patterns due to tariffs, which could impact demand and freight rates.
Company Guidance
During the call, Ardmore Shipping Corporation provided detailed guidance on several key financial metrics and market dynamics for 2024. The company reported adjusted earnings of $120 million, or $2.84 per share, for the full year, with a fourth-quarter contribution of $10.3 million, translating to $0.25 per share. Ardmore emphasized its efficient capital allocation strategy, highlighting the repurchase of 4% of its shares at an average price of $11.49 and the declaration of a quarterly cash dividend of $0.08 per share. The company's TCE performance remained robust, with MRs earning $22,700 per day in Q4 and $23,400 per day in Q1 2025 so far, while chemical tankers earned $21,400 per day in Q4 and $14,000 per day in Q1 2025. Ardmore also noted a significant reduction in cash breakeven levels to $11,500 per day, positioning it well for future market conditions. The company remains focused on leveraging market volatility, regulatory shifts, and geopolitical disruptions to drive earnings and shareholder value.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.