Ardmore Shipping (ASC)
NYSE:ASC
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Ardmore Shipping
(NYSE:ASC)
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Rating:69Neutral
Price Target:
$16.50
▲(6.73% Upside)
Action:DowngradedDate:02/14/26
The score is driven primarily by a de-risked balance sheet but offset by weaker 2025 profitability and negative free cash flow. Technicals are supportive with an uptrend and positive momentum. The earnings call tone and guidance were strong, but high spot-market exposure and macro/geopolitical volatility keep the overall rating in the upper-middle range.
Positive Factors
De‑risked balance sheet and low leverage
A materially lower debt-to-equity (~0.20x) and a sizable equity base strengthen financial resilience across shipping cycles. This durable capital structure improves the company's ability to absorb freight downturns, fund opportunistic acquisitions, maintain dividends and access capital without forcing distressed asset sales.
Negative Factors
High spot-market exposure (82%)
With ~82% of revenue exposed to spot rates, earnings and cashflows remain highly cyclically sensitive. Even with a low breakeven, prolonged rate weakness or sudden ton‑mile shifts could rapidly compress margins and reduce predictability of dividends and capital returns over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
De‑risked balance sheet and low leverage
A materially lower debt-to-equity (~0.20x) and a sizable equity base strengthen financial resilience across shipping cycles. This durable capital structure improves the company's ability to absorb freight downturns, fund opportunistic acquisitions, maintain dividends and access capital without forcing distressed asset sales.
Read all positive factors
Ardmore Shipping (ASC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$630.81M
Dividend Yield2.8%
Average Volume (3M)732.25K
Price to Earnings (P/E)12.0
Beta (1Y)0.45
Revenue Growth-26.81%
EPS Growth-78.30%
CountryUS
Employees56
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.28
Shares Outstanding40,802,612
10 Day Avg. Volume471,974
30 Day Avg. Volume732,255
Financial Highlights & Ratios
PEG Ratio-0.17
Price to Book (P/B)0.78
Price to Sales (P/S)1.59
P/FCF Ratio-12.63
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit7.97
Enterprise Value/Ebitda8.51
Forecast
1Y Price Target
$17.00Price Target Upside9.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.56
Revenue Forecast (FY)$212.75M
Ardmore Shipping Business Overview & Revenue Model
Company Description
Ardmore Shipping Corporation engages in the seaborne transportation of petroleum products and chemicals worldwide. As of February 15, 2022, the company operated a fleet of 25 double-hulled product and chemical tankers. It serves oil majors, oil co...
How the Company Makes Money
Ardmore Shipping makes money primarily by chartering its vessels to customers to transport refined petroleum products and chemicals. Its core revenue stream is freight income (often reported as voyage revenue or time-charter revenue) earned under ...
Ardmore Shipping Key Performance Indicators (KPIs)
Ardmore Shipping Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: management reported strong earnings, high TCEs, low cash breakeven, successful fleet upgrades, accretive acquisitions (three MRs up ~15%), and meaningful operational/technology gains (AI, advanced coatings, hull robots). At the same time, the company acknowledged material macro and structural risks — geopolitical disruption, an aging global MR fleet, spot-market exposure, and a tighter financing backdrop. Overall, the positive operational and financial developments and balance-sheet improvements substantially outweigh the listed risks, though these risks merit ongoing monitoring.Positive Updates
Strong TCE & Rate Environment
Consistent quarter-on-quarter TCE improvement with MR tankers earning $25,300/day in Q4 2025 and $29,100/day in Q1 2026 (50% booked); chemical tankers earned $19,900/day in Q4 and $20,800/day in Q1 (30% booked). Management notes current rates approaching ~3x the company's breakeven.
Negative Updates
Geopolitical Uncertainty and Market Volatility
Ongoing geopolitical disruptions (Russia/Ukraine-related embargoes, Venezuela, Iran and sanction enforcement) create volatile trade flows and unpredictability. Management acknowledges this is a material source of both upside and downside risk and that reversals (e.g., end of hostilities) could be ton-mile negative.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong TCE & Rate Environment
Consistent quarter-on-quarter TCE improvement with MR tankers earning $25,300/day in Q4 2025 and $29,100/day in Q1 2026 (50% booked); chemical tankers earned $19,900/day in Q4 and $20,800/day in Q1 (30% booked). Management notes current rates approaching ~3x the company's breakeven.
Read all positive updates
Company Guidance
Ardmore’s guidance was detailed and metric-rich: Q4 TCEs were $25,300/day for MRs and $19,900/day for chemical tankers, with Q1-to-date rates of $29,100/day (MRs, 50% booked) and $20,800/day (chemicals, 30% booked) and overall spot exposure at 82%; management reiterated a cash breakeven of $11,700/day ($10,800/day excl. CapEx), noted rates are approaching ~3x breakeven, and quantified that each $10,000/day change in TCE moves annual earnings by ~$2.00/share. FY2025 adjusted earnings were $38.8M ($0.95/share) and Q4 adjusted earnings $11.6M ($0.28/share); EBITDAR was $27M for the quarter and $95M for the year; the company declared a $0.09/share quarterly dividend (one‑third of adjusted earnings). Capital and fleet guidance: refinanced into a $350M fully revolving facility, fully redeemed $30M preferred, completed drydocks on ~50% of the fleet (only ~10% due in 2026–27), forecast fleet CapEx of ~ $5M for 2026 (vs. ~$30M in 2025), fixed a 2020 MR at $26,000/day, and noted three MR purchases have appreciated ~15%.Ardmore Shipping Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
79
Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 310.20M | 405.78M | 395.98M | 445.74M | 192.48M |
| Gross Profit | 106.11M | 156.33M | 167.11M | 195.53M | 8.05M |
| EBITDA | 81.03M | 178.39M | 157.85M | 185.62M | 9.92M |
| Net Income | 41.01M | 133.01M | 116.81M | 138.45M | -36.83M |
Balance Sheet | |||||
| Total Assets | 788.72M | 704.80M | 690.95M | 723.86M | 724.53M |
| Cash, Cash Equivalents and Short-Term Investments | 46.84M | 46.99M | 46.80M | 50.57M | 55.45M |
| Total Debt | 128.87M | 44.24M | 93.99M | 184.62M | 372.55M |
| Total Liabilities | 154.39M | 69.38M | 116.51M | 217.42M | 395.54M |
| Stockholders Equity | 634.34M | 635.42M | 574.44M | 506.44M | 329.00M |
Cash Flow | |||||
| Free Cash Flow | -39.07M | 99.42M | 134.22M | 120.40M | -5.52M |
| Operating Cash Flow | 81.65M | 160.44M | 159.61M | 124.21M | -2.89M |
| Investing Cash Flow | -121.00M | -32.97M | -26.84M | 35.41M | 1.63M |
| Financing Cash Flow | 39.21M | -127.29M | -136.54M | -164.50M | -1.66M |
Ardmore Shipping Technical Analysis
Positive
15.46
Price Trends
14.49
Positive
13.08
Positive
12.11
Positive
Market Momentum
0.24
Positive
52.87
Neutral
66.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASC, the sentiment is Positive. The current price of 15.46 is above the 20-day moving average (MA) of 14.99, above the 50-day MA of 14.49, and above the 200-day MA of 12.11, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 66.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASC.
Ardmore Shipping Risk Analysis
Ardmore Shipping disclosed 68 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.95B | 8.98 | ― | 6.50% | -12.47% | -34.41% | |
69 Neutral | $630.81M | 12.03 | 6.37% | 2.80% | -26.81% | -78.30% | |
66 Neutral | $295.18M | 9.07 | 7.83% | 4.94% | -8.99% | -68.66% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $492.50M | 22.66 | 4.60% | 3.57% | 14.21% | -36.71% | |
59 Neutral | $349.20M | 15.09 | 3.77% | 1.00% | 19.59% | ― | |
51 Neutral | $1.27B | 59.37 | 2.59% | 10.65% | -16.03% | -97.01% |
* Industrials Sector Average
ASC
Ardmore Shipping
15.46
6.71
76.73%
NAT
Nordic American Tanker
5.99
3.90
187.01%
SHIP
Seanergy Maritime
13.98
8.74
167.00%
KNOP
KNOT Offshore Partners
10.06
3.66
57.06%
PANL
Pangaea Logistics Solutions
7.54
3.28
77.16%
ECO
Okeanis Eco Tankers Corp.
50.95
32.60
177.64%
Ardmore Shipping Corporate Events
Ardmore Shipping Posts Lower 2025 Profit but Lifts Dividend as Tanker Markets Strengthen
Feb 12, 2026
Ardmore Shipping reported net income attributable to common stockholders of $9.3 million for the fourth quarter of 2025 and $36.1 million for the full year, with adjusted earnings of $11.6 million and $38.8 million respectively, reflecting solid q...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.