Diana Shipping (DSX) AI Stock Analysis

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Diana Shipping

(NYSE:DSX)

55Neutral

Diana Shipping's stock is moderately rated due to its stable gross margins and strategic financial management, but faces challenges such as declining revenues, liquidity concerns, and bearish technical indicators. The high P/E ratio and dividend yield indicate potential valuation risks. Strong cash reserves and fleet management are positives, but market volatility and declining earnings are significant concerns.

Diana Shipping (DSX) vs. S&P 500 (SPY)

Market Cap

$165.55M

Dividend Yield11.89%

Average Volume (3M)321.63K

Price to Earnings (P/E)24.3

Beta (1Y)0.74

Revenue Growth-12.93%

EPS Growth-86.34%

CountryUS

Employees981

SectorIndustrials

Sector Strength70

IndustryMarine Shipping

Share Statistics

EPS (TTM)0.06

Shares Outstanding115,767,860

10 Day Avg. Volume413,401

30 Day Avg. Volume321,629

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.79

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 TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Diana Shipping Business Overview & Revenue Model

Company DescriptionDiana Shipping Inc. is a global provider of shipping transportation services, specializing in the ownership of dry bulk vessels. These vessels are primarily used to transport a range of dry bulk cargoes, including commodities such as iron ore, coal, grain, and other materials. Operating within the maritime shipping industry, Diana Shipping manages a modern fleet of vessels, offering reliable and efficient logistics solutions to its clients worldwide.

How the Company Makes MoneyDiana Shipping Inc. generates revenue primarily through time charter contracts and voyage charters. In time charter agreements, the company leases its vessels to clients for a fixed period, during which the client assumes operational control and responsibility for the vessel's expenses, while paying Diana Shipping a daily hire rate. Voyage charters, on the other hand, involve leasing a vessel for a single voyage between specified ports with Diana Shipping covering the operating expenses, including fuel and port charges, in exchange for a freight rate. The company benefits from its strategic partnerships with major international shipping companies, enabling it to secure long-term contracts and stable revenue streams. Additionally, market conditions affecting the supply and demand for dry bulk shipping capacity can significantly influence the company's earnings.

Diana Shipping Financial Statement Overview

Summary

Diana Shipping exhibits stable profitability with a gross margin of 57.85% and a net margin of 5.59%, but faces declining revenues and profit margins. The balance sheet is stable with moderate leverage, yet liquidity concerns arise from the cash flow statement with zero free cash flow recently.

Income Statement

Positive

Diana Shipping has faced fluctuating revenue over the years, with a noticeable decline in total revenue in the latest period. The company maintains a reasonable gross profit margin of 57.85% and a net profit margin of 5.59% for 2024, indicating some profitability despite challenges. However, the significant revenue drop in 2024 compared to previous years and a declining trend in EBIT and EBITDA margins indicate pressures on operating efficiency.

Balance Sheet

Positive

The company has a moderate debt-to-equity ratio of 1.26, suggesting a balanced leverage position. Stockholders' equity has remained relatively stable, and the equity ratio of 43.13% indicates a solid capital structure. However, the total liabilities are high compared to assets, which may pose potential risks if not managed properly.

Cash Flow

Negative

Despite having a free cash flow of zero in the latest period, Diana Shipping had a positive operating cash flow in previous years, indicating past operational cash generation ability. However, the absence of free cash flow growth and zero operating cash flow in the latest period highlight potential liquidity issues.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
228.21M	262.10M	289.97M	214.20M	169.73M
	Gross Profit
132.01M	113.21M	167.67M	93.39M	27.37M
	EBIT
58.78M	85.71M	98.36M	21.84M	-7.20M
	EBITDA
97.90M	96.25M	188.91M	120.89M	-68.00M
	Net Income Common Stockholders
12.75M	49.84M	119.06M	77.65M	-112.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
207.17M	162.32M	143.93M	126.79M	82.91M
	Total Assets
1.17B	1.17B	1.18B	842.16M	872.41M
	Total Debt
637.52M	642.77M	754.94M	423.68M	420.31M
	Net Debt
494.36M	541.18M	611.01M	296.89M	337.40M
	Total Liabilities
665.96M	677.39M	695.59M	448.75M	443.84M
	Stockholders Equity
505.06M	489.02M	487.33M	393.40M	428.57M
Cash Flow		Free Cash Flow
59.30M	38.64M	-72.11M	70.71M	11.10M
	Operating Cash Flow
83.53M	70.38M	158.86M	89.70M	17.23M
	Investing Cash Flow
-39.78M	24.93M	-273.10M	13.36M	10.48M
	Financing Cash Flow
-21.67M	-71.14M	84.88M	-59.19M	-73.10M

Diana Shipping Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.44

Price Trends

50DMA

1.72

Negative

100DMA

1.80

Negative

200DMA

2.12

Negative

Market Momentum

MACD

-0.10

Positive

RSI

36.67

Neutral

STOCH

41.14

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSX, the sentiment is Negative. The current price of 1.44 is below the 20-day moving average (MA) of 1.57, below the 50-day MA of 1.72, and below the 200-day MA of 2.12, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 36.67 is Neutral, neither overbought nor oversold. The STOCH value of 41.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DSX.

Diana Shipping Risk Analysis

Diana Shipping disclosed 116 risk factors in its most recent earnings report. Diana 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

Diana 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
NMM	75 Outperform	$935.64M	2.65	12.46%	0.63%	2.08%	-14.91%
SBLK	72 Outperform	$1.67B	5.08	14.71%	15.03%	33.31%	62.94%
SB	70 Outperform	$366.34M	4.19	11.99%	5.75%	8.17%	35.92%
GNK	69 Neutral	$566.64M	7.54	8.30%	11.07%	10.21%	―
GOGL	68 Neutral	$1.47B	6.62	11.68%	14.21%	9.33%	98.70%
Sector *	62 Neutral	$7.70B	13.14	3.53%	3.32%	3.90%	-14.25%
DSX	55 Neutral	$165.55M	24.32	2.56%	11.89%	-12.93%	-86.34%

* Industrials Sector Average

Performance Comparison

DSX

Diana Shipping

1.44

-1.25

-46.47%

GNK

Genco Shipping

12.79

-6.23

-32.75%

NMM

Navios Maritime Partners

33.27

-9.08

-21.44%

Safe Bulkers

3.46

-1.06

-23.45%

SBLK

Star Bulk Carriers

14.21

-6.65

-31.88%

GOGL

Golden Ocean Group

7.29

-4.50

-38.17%

Diana Shipping Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -19.55% | Next Earnings Date: May 16, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong fleet management and strategic financial decisions, including successful chartering strategies and a commitment to ESG. However, the company faced challenges with declining revenue and earnings per share, along with market volatility affecting time charter rates.

Highlights

Fleet Utilization and Management

Fleet utilization reached 99.7% for the fiscal year 2024, indicating effective vessel management. Diana Shipping operates a fleet of 38 dry bulk vessels, with an average age of 11.4 years and a total deadweight capacity of approximately 4.2 million tons.

Successful Financial Moves

Secured revenues for 63% of the remaining ownership days of 2025, amounting to approximately $125 million, and 10% of available ownership days in 2026, amounting to approximately $30 million. The company holds significant cash reserves of $207 million.

Chartering Strategy

Secured favorable time charters for multiple vessels with daily rates ranging from $11,260 to $18,312, showcasing a disciplined chartering strategy to ensure earnings visibility and resilience against market downturns.

ESG Commitment

Released the fifth annual ESG report, highlighting the company's commitment to sustainability and eco-friendly technologies.

Lowlights

Revenue and Income Decline

Revenue for the fourth quarter of 2024 was $57.1 million, down 5% from $60 million in the same quarter of the previous year. Net income for 2024 was $12.7 million, a significant decrease from $49.8 million in 2023.

Earnings Per Share Drop

Diluted earnings per common share decreased to $0.02 in the fourth quarter of 2024 from $0.06 in the same quarter of 2023 due to an increased average number of shares and other income adjustments.

Time Charter Equivalent Rate Decrease

The time charter equivalent for 2024 was $15,267, down from $16,713 in 2023, reflecting decreased average rates achieved during the year.

Dry Bulk Market Volatility

The dry bulk market experienced significant volatility, with the Baltic Dry Index dropping to 715 by January 2025, down from a high of 2,419 in March 2024.

Company Guidance

During the Diana Shipping Inc. 2024 fourth quarter and year-end conference call, the company provided a comprehensive review of its financial performance and strategic initiatives. For fiscal year 2024, Diana Shipping achieved a fleet utilization rate of 99.7%, underscoring their effective vessel management. The company operates 38 dry bulk vessels, with seven being mortgage-free, and a total deadweight capacity of approximately 4.2 million tons. Financially, Diana Shipping reported a net debt standing at 40% of market value, bolstered by $207 million in cash reserves. The fourth quarter revenue was $57.1 million, a slight decrease from $60 million in the same period last year, while adjusted EBITDA stood at $25.9 million. The company declared a quarterly cash dividend of $0.01 per common share, totaling about $1.1 million. The guidance highlighted the successful refinancing of existing debt, securing $80.2 million through a new term loan facility, and the completion of a $25 million tap issue under their outstanding senior unsecured bond. Looking ahead, contracted revenues for the remaining ownership days of 2025 are projected at $124.8 million, with $30 million for 2026. Additionally, Diana Shipping's strategy includes fleet modernization with the anticipated delivery of two methanol dual-fuel newbuilding Kamsarmax vessels and an emphasis on an ongoing environmental, social, and governance (ESG) strategy.

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.