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Ardmore Shipping (ASC)
NYSE:ASC
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Ardmore Shipping
(NYSE:ASC)
Rating:81Outperform
Price Target:
$12.00
▲(17.65%Upside)
Ardmore Shipping (ASC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$414.36M
Dividend Yield1.96%
Average Volume (3M)600.50K
Price to Earnings (P/E)4.5
Beta (1Y)0.21
Revenue Growth-2.75%
EPS Growth-12.67%
CountryUS
Employees56
SectorIndustrials
Sector Strength86
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.14
Shares Outstanding40,623,928
10 Day Avg. Volume741,951
30 Day Avg. Volume600,503
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.06
Price to Sales (P/S)0.00
P/FCF Ratio4.46
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue0.41
Enterprise Value/Gross Profit3.99
Enterprise Value/Ebitda1.00
Forecast
1Y Price Target
$12.63Price Target Upside23.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Ardmore Shipping Business Overview & Revenue Model
Company DescriptionArdmore Shipping Corporation (ASC) is a global shipping company primarily focused on the seaborne transportation of petroleum products and chemicals. The company operates a fleet of modern, fuel-efficient vessels that provide transportation services to oil majors, national oil companies, and chemical companies worldwide. Ardmore Shipping is committed to offering high-quality, reliable services while maintaining high standards of safety and environmental responsibility.
How the Company Makes MoneyArdmore Shipping generates revenue through the chartering of its fleet of tankers to customers on a voyage or time-charter basis. The company's key revenue streams include freight income from spot market voyages, where vessels are hired for a single trip, and time-charter income, where vessels are hired for a specific period. Ardmore Shipping's earnings are influenced by factors such as global demand for petroleum products and chemicals, freight rates, and the efficient management of its fleet operations. Additionally, strategic partnerships and long-term agreements with major oil and chemical companies contribute to its stable revenue base.
Ardmore Shipping Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 3.55%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Ardmore Shipping's strong financial performance, strategic investments, and positive market positioning, despite facing macroeconomic uncertainties and asset value volatility. The company's robust earnings, dividend declaration, and leadership transitions were notable positives, while geopolitical uncertainty and asset value fluctuations presented challenges.Q1-2025 Updates
Positive Updates
Robust Earnings and Dividend Declaration
Ardmore Shipping announced first quarter adjusted earnings of $5.6 million, or $0.14 per share, and declared a quarterly cash dividend consistent with their policy of paying out one-third of adjusted earnings.
Strong TCE Performance
MR earnings were $20,900 per day for the first quarter and $22,100 per day for the second quarter with 50% booked. Chemical tankers earned $15,000 per day for the first quarter and $19,500 per day for the second quarter with 60% booked.
Strategic Fleet Investments
Ardmore upgraded tank coatings on four chemical tankers to increase cargo flexibility and boost earnings. The company continues to invest in efficiency projects across its fleet, achieving IRRs ranging from 20% to over 100%.
Positive Supply Side Dynamics
The global MR fleet is aging, with more than 50% over 20 years old within the next five years, while the current order book represents only 14% of the fleet.
Leadership Transition
Ardmore announced the promotion of Robert Gaina to COO and John Russell to CFO, reflecting a commitment to internal talent development.
Negative Updates
Geopolitical Uncertainty
U.S. tariffs and countermeasures have created uncertainty across the wider macro economy, impacting the broader markets despite supportive underlying tanker demand fundamentals.
Asset Value Volatility
Asset values have been volatile due to macroeconomic uncertainties and geopolitical events, impacting market confidence and transactions.
Company Guidance
During Ardmore Shipping's first quarter 2025 earnings call, the company provided detailed guidance on various metrics. They announced adjusted earnings of $5.6 million, or $0.14 per share, and declared a quarterly cash dividend consistent with their policy of paying out one-third of adjusted earnings. Their MR tankers earned $20,900 per day in the first quarter and $22,100 per day with 50% of the second quarter booked, while chemical tankers earned $15,000 per day in the first quarter and $19,500 per day with 60% of the second quarter booked. The company maintained a low cash break-even level of $11,500 per day, with further reductions expected due to strategic fleet upgrades. They reported EBITDAR of $18.5 million for the first quarter and highlighted their commitment to capital allocation, with a focus on reducing debt and investing in fleet efficiency projects. Additionally, Ardmore announced management changes, emphasizing internal promotions and strategic continuity.Ardmore Shipping Financial Statement Overview
Summary
Ardmore Shipping demonstrates solid financial health with strong profitability, effective debt management, and robust cash generation. Notable improvements in profitability and a reduction in debt highlight a positive trajectory, though a decrease in free cash flow due to higher capital expenditures poses a short-term concern.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 | 171.79M | 167.11M | 195.53M | 4.44M | 99.05M |
| EBITDA | 178.39M | 157.85M | 187.83M | 11.83M | 50.63M |
| Net Income | 133.01M | 116.81M | 138.45M | -36.52M | -6.05M |
Balance Sheet | |||||
| Total Assets | 704.80M | 690.95M | 723.86M | 724.53M | 752.01M |
| Cash, Cash Equivalents and Short-Term Investments | 46.99M | 46.80M | 50.57M | 55.45M | 58.37M |
| Total Debt | 44.24M | 93.99M | 184.62M | 372.55M | 409.71M |
| 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 | 99.42M | 134.22M | 120.40M | -5.52M | 25.19M |
| Operating Cash Flow | 160.44M | 159.61M | 124.21M | -2.89M | 46.09M |
| Investing Cash Flow | -32.97M | -26.84M | 35.41M | 1.63M | -20.99M |
| Financing Cash Flow | -127.29M | -136.54M | -164.50M | -1.66M | -18.46M |
Ardmore Shipping Technical Analysis
Positive
10.20
Price Trends
9.78
Positive
9.77
Positive
11.59
Negative
Market Momentum
0.04
Positive
56.54
Neutral
34.69
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 10.2 is above the 20-day moving average (MA) of 9.91, above the 50-day MA of 9.78, and below the 200-day MA of 11.59, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 34.69 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 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $414.36M | 4.47 | 15.97% | 1.96% | -2.75% | -12.67% | |
73 Outperform | $234.08M | 16.17 | 2.33% | 1.55% | 10.07% | ― | |
70 Outperform | $567.49M | 15.65 | 6.96% | 10.45% | -3.87% | -46.50% | |
70 Neutral | $381.62M | 5.57 | 9.82% | 5.36% | -2.98% | -0.96% | |
68 Neutral | $592.84M | 13.23 | 5.02% | 4.35% | -7.38% | 1295.53% | |
65 Neutral | $10.69B | 15.75 | 5.51% | 1.90% | 2.72% | -26.43% | |
63 Neutral | $332.70M | 14.85 | 4.05% | 3.94% | 13.10% | -54.75% |
* Industrials Sector Average
Performance Comparison
ASC
Ardmore Shipping
10.20
-10.24
-50.10%
GNK
Genco Shipping
13.80
-5.75
-29.41%
NAT
Nordic American Tanker
2.68
-0.81
-23.21%
SB
Safe Bulkers
3.73
-1.85
-33.15%
KNOP
KNOT Offshore Partners
6.70
-1.22
-15.40%
PANL
Pangaea Logistics Solutions
5.07
-1.99
-28.19%
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.