Education
About Us
Working with TipRanks
Follow Us
Ardmore Shipping Corp (ASC)
:ASC
Top Page
Ardmore Shipping
(NYSE:ASC)
Select Model
Select Model
Rating:78Outperform
Price Target:
$12.00
â–¼(-8.75% Downside)
Ardmore Shipping's strong financial performance and positive earnings call are the most significant factors driving the score. The company's strategic acquisitions and favorable market conditions further enhance its outlook. Technical indicators and valuation metrics support a positive view, although inconsistent revenue growth and potential future supply issues are risks to monitor.
Ardmore Shipping (ASC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$539.89M
Dividend Yield2.89%
Average Volume (3M)527.95K
Price to Earnings (P/E)12.9
Beta (1Y)0.24
Revenue Growth-21.59%
EPS Growth-70.74%
CountryUS
Employees56
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.22
Shares Outstanding40,623,928
10 Day Avg. Volume598,965
30 Day Avg. Volume527,947
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)0.80
Price to Sales (P/S)1.25
P/FCF Ratio5.09
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue1.23
Enterprise Value/Gross Profit4.06
Enterprise Value/Ebitda4.55
Forecast
1Y Price Target
$13.00Price Target Upside-1.14% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Ardmore Shipping Business Overview & Revenue Model
Company DescriptionArdmore 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 companies, oil and chemical traders, chemical companies, and pooling service providers. The company was founded in 2010 and is based in Pembroke, Bermuda.
How the Company Makes MoneyArdmore Shipping generates revenue through the chartering of its vessels, which is the primary source of income. The company employs a mix of spot and time charter contracts, allowing them to optimize earnings based on market conditions. Spot charters are typically short-term agreements where vessels are hired for immediate use, while time charters involve leasing vessels for a specified period. Additionally, Ardmore may earn revenue through the transportation of cargo, which includes refined oil products and chemicals. The company also benefits from strategic partnerships with oil and chemical companies, enhancing its service offerings and market reach. Factors contributing to its earnings include fluctuations in freight rates, operational efficiencies, and the demand for shipping services in the global market.
Ardmore Shipping Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The call highlighted strong financial performance, strategic acquisitions, and favorable market dynamics, while addressing challenges related to fleet supply and capital expenditures.Q2-2025 Updates
Positive Updates
Strong Earnings and TCE Rates
Adjusted earnings for the second quarter were $9 million or $0.22 per share. TCE rates for MRs were $23,500 per day in Q2 and $25,500 in Q3, with chemical tankers earning $20,400 in Q2 and $21,700 in Q3.
Strategic Acquisitions and Refinancing
Acquired three high-quality MR tankers at attractive prices, consolidated existing debt into a single €350 million revolving credit facility, enhancing financial flexibility.
Positive Market Dynamics
Favorable market conditions driven by OPEC+ production increases and low diesel inventories, boosting trading activity.
Improved Fleet Operations
On hire availability was strong at 99% in Q2, and the majority of drydocking work for the year is completed.
Negative Updates
No Significant New Build Orders
The MR fleet is aging, and the current order book represents just 14% of the overall MR fleet, indicating potential future supply issues.
High Capital Expenditures
Projected drydocking and related capital expenditures for 2025 are estimated at $35 million to $38 million.
Company Guidance
During the second quarter of the fiscal year 2025, Ardmore Shipping Corporation reported adjusted earnings of $9 million, equivalent to $0.22 per share. The company experienced significant improvements in its TCE rates, with MR tankers earning $23,500 per day in the second quarter and $25,500 in the third quarter, while chemical tankers earned $20,400 and $21,700 per day for the same periods, respectively. Ardmore acquired three high-quality MR tankers and closed a refinancing deal, consolidating its debt into a €350 million revolving credit facility. The company also secured a three-year time charter for one of its chemical tankers at $19,250 per day and increased its MR fixed-rate coverage to four vessels at $22,500 per day. The financial performance was bolstered by market dynamics such as stronger refining margins and geopolitical factors, with EBITDAR for the second quarter reaching $22.4 million. Additionally, the company continues to benefit from a strong capital allocation strategy, maintaining a low cash breakeven and declaring its eleventh consecutive dividend since 2022.Ardmore Shipping Financial Statement Overview
Summary
Ardmore Shipping demonstrates strong profitability with healthy margins and a robust balance sheet characterized by low debt levels. Cash flow generation is solid, although revenue growth has been inconsistent.Income Statement
Ardmore Shipping shows strong profitability with a gross profit margin of 30.21% and a net profit margin of 14.47% for TTM, indicating efficient cost management and solid earnings. However, the revenue growth rate has been inconsistent, with a decline in the latest period. EBIT and EBITDA margins are healthy at 21.58% and 26.95% respectively, reflecting good operational performance.78
Positive
Balance Sheet
The company's balance sheet is robust with a low debt-to-equity ratio of 0.04, indicating low reliance on debt financing. Return on equity is strong at 7.26%, showcasing effective use of equity to generate profits. The equity ratio of 91.77% signifies a strong equity base and financial stability.82
Very Positive
Cash Flow
Ardmore Shipping has shown impressive free cash flow growth and maintains a healthy free cash flow to net income ratio of 1.76 for TTM, ensuring sufficient cash generation relative to profits. The operating cash flow to net income ratio stands at 2.17, demonstrating strong cash flow generation from operations.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 324.20M | 405.78M | 395.98M | 445.74M | 192.48M | 220.06M |
| Gross Profit | 98.00M | 171.79M | 167.11M | 195.53M | 4.44M | 99.05M |
| EBITDA | 87.41M | 178.39M | 157.85M | 187.83M | 11.83M | 50.63M |
| Net Income | 46.93M | 133.01M | 116.81M | 138.45M | -36.52M | -6.05M |
Balance Sheet | ||||||
| Total Assets | 703.82M | 704.80M | 690.95M | 723.86M | 724.53M | 752.01M |
| Cash, Cash Equivalents and Short-Term Investments | 49.48M | 46.99M | 46.80M | 50.57M | 55.45M | 58.37M |
| Total Debt | 28.64M | 44.24M | 93.99M | 184.62M | 372.55M | 409.71M |
| Total Liabilities | 57.79M | 69.38M | 116.51M | 217.42M | 395.53M | 431.67M |
| Stockholders Equity | 646.03M | 635.42M | 574.44M | 506.44M | 329.00M | 320.33M |
Cash Flow | ||||||
| Free Cash Flow | 82.41M | 99.42M | 134.22M | 120.40M | -5.52M | 25.19M |
| Operating Cash Flow | 101.79M | 160.44M | 159.61M | 124.21M | -2.89M | 46.09M |
| Investing Cash Flow | -19.62M | -32.97M | -26.84M | 35.41M | 1.63M | -20.99M |
| Financing Cash Flow | -80.00M | -127.29M | -136.54M | -164.50M | -1.66M | -18.46M |
Ardmore Shipping Technical Analysis
Positive
13.15
Price Trends
11.09
Positive
10.44
Positive
10.50
Positive
Market Momentum
0.61
Negative
79.33
Negative
88.02
Negative
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 13.15 is above the 20-day moving average (MA) of 12.09, above the 50-day MA of 11.09, and above the 200-day MA of 10.50, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 79.33 is Negative, neither overbought nor oversold. The STOCH value of 88.02 is Negative, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $539.89M | 12.90 | 7.10% | 2.89% | -21.59% | -70.74% | |
71 Outperform | 312.69M | 21.60 | 2.30% | 1.17% | 10.07% | 0.00% | |
70 Neutral | 466.58M | 10.68 | 11.71% | 4.33% | -9.65% | -46.46% | |
69 Neutral | 364.05M | 25.54 | <0.01% | 5.32% | 15.09% | -71.58% | |
67 Neutral | 796.90M | 53.17 | 1.73% | 5.32% | -17.15% | 2.40% | |
65 Neutral | 700.89M | 51.88 | 2.76% | 8.18% | -12.89% | -78.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
ASC
Ardmore Shipping
13.15
-4.18
-24.12%
GNK
Genco Shipping
18.81
1.79
10.52%
NAT
Nordic American Tanker
3.30
-0.01
-0.30%
SB
Safe Bulkers
4.62
-0.07
-1.49%
KNOP
KNOT Offshore Partners
8.87
2.07
30.44%
PANL
Pangaea Logistics Solutions
5.64
-0.64
-10.19%
Ardmore Shipping Corporate Events
Ardmore Shipping Reports Q2 2025 Results and Strategic Fleet Expansion
Jul 30, 2025
On July 30, 2025, Ardmore Shipping Corporation announced its financial results for the first half of the year, reporting adjusted earnings of $9.0 million for the second quarter and $14.6 million for the first half of 2025. The company declared a cash dividend of $0.07 per share and announced the acquisition of three modern MR tankers to be delivered by the end of September 2025. Additionally, Ardmore secured a $350 million revolving credit facility and committed to several time-charter contracts, enhancing its fleet’s operational flexibility and financial stability. These strategic moves are expected to strengthen Ardmore’s market position and provide long-term value to stakeholders.
Ardmore Shipping Reports Mid-2025 Financial Results Amid Global Challenges
Jul 30, 2025
On July 30, 2025, Ardmore Shipping Corporation released its financial results for the three and six months ended June 30, 2025. The company reported on its operations, highlighting its modern, fuel-efficient fleet of mid-size tankers. The report also discussed various forward-looking statements concerning future operating results, fleet expansion, and the impact of geopolitical conflicts on the shipping industry. These insights are crucial for stakeholders to understand the company’s strategic positioning and potential risks in the current global market.
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.