Performance Shipping (PSHG) AI Stock Analysis

• Market Cap: $17.03M
• Dividend Yield: N/A
• Average Volume (3M): 42.91K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.22
• Revenue Growth: -19.73%
• EPS Growth: -33.68%
• Country: US
• Employees: 211
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 1.07
• Shares Outstanding: 12,432,158
• 10 Day Avg. Volume: 40,755
• 30 Day Avg. Volume: 42,915
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.17
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.93
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.79
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.75
• Price Target Upside: 319.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Performance Shipping's stock is supported by strong profitability and low valuation, but challenges include revenue decline and negative technical indicators. The absence of clear cash flow data adds to the uncertainty.

Positive Factors

Analyst Recommendation

Trading at 0.2x 4Q24 adjusted BV/share of $8.00, analyst reiterates a Buy rating and $5.00 price target.

Market Demand

The U.S. is expected to continue exporting record amounts of oil and refined products, leading to more demand for tankers while supply growth remains limited.

Shipping Routes

Longer voyages are expected to continue, which typically removes some shipping supply, thereby boosting rates.

Negative Factors

Demand Forecast

Lower import demand from China is expected to start the 4Q24, leading to reduced forecasts.

Market Rates

Tanker rates are down y/y on lower China demand & less disruption to trade routes.

Revenue Performance

PSHG’s 2024 TCE rate was $33,204, down 10.1% y/y, leading to 2024 revenue of $87.4M, down 19.7% y/y.

Performance Shipping Business Overview & Revenue Model

Company Description

Performance Shipping Inc., through its subsidiaries, provides shipping transportation services through its ownership of tanker vessels worldwide. It owned and operated five Aframax tanker vessels with a combined carrying capacity of 546,094 dwt. The company was incorporated in 2010 and is based in Athens, Greece.

How the Company Makes Money

Performance Shipping generates revenue through the chartering of its fleet of vessels to customers in the oil and dry bulk industries. The company earns income primarily from time charter agreements, where vessels are hired for specific periods at predetermined rates, and from spot market voyages, where ships are leased on a per-trip basis. Performance Shipping's earnings are influenced by factors such as charter rates, fleet utilization, and operational efficiency. The company's financial performance is also affected by global oil demand, shipping market conditions, and the efficient management of its fleet.

Performance Shipping Financial Statement Overview

Summary

Performance Shipping exhibits strong profitability and a solid balance sheet with low leverage, but faces challenges with revenue decline and unclear cash flow data. The company should focus on stabilizing revenue and improving cash flow transparency to enhance financial health.

Income Statement

Performance Shipping has shown a mixed performance with declining revenue in the latest year, which decreased by 19.7% from the previous year. However, the company maintains strong profitability metrics with a gross profit margin of 72.6% and a net profit margin of 50.0%. The EBIT margin of 47.8% and EBITDA margin of 64.1% indicate effective cost management despite revenue challenges.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.17, reflecting a strong equity base. The equity ratio stands at 83.3%, indicating financial stability and low leverage risk. Return on equity (ROE) is high at 15.9%, showing efficient use of shareholders' equity to generate profits.

Cash Flow

The absence of operating cash flow and free cash flow data for the latest period raises concerns about cash generation capabilities. Previous data shows inconsistent free cash flow figures, and the lack of current cash flow metrics limits the assessment of cash flow strength.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
87.44M	108.94M	75.17M	36.49M	46.28M
	Gross Profit
63.45M	67.92M	37.20M	-2.49M	14.22M
	EBIT
41.81M	75.53M	30.42M	-8.46M	5.76M
	EBITDA
56.04M	93.80M	49.55M	-1.02M	10.11M
	Net Income Common Stockholders
43.73M	69.41M	36.30M	-11.30M	1.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
71.31M	67.27M	38.73M	9.57M	21.38M
	Total Assets
330.39M	296.27M	292.98M	144.92M	157.85M
	Total Debt
47.46M	54.98M	127.84M	49.90M	57.67M
	Net Debt
-23.86M	-12.28M	89.11M	40.32M	36.29M
	Total Liabilities
55.15M	63.08M	137.27M	57.58M	61.06M
	Stockholders Equity
275.24M	233.18M	155.71M	87.35M	96.80M
Cash Flow		Free Cash Flow
0.00	56.04M	-111.73M	-4.91M	-50.43M
	Operating Cash Flow
0.00	67.95M	33.85M	-3.12M	13.18M
	Investing Cash Flow
0.00	25.72M	-112.95M	-770.00K	-40.15M
	Financing Cash Flow
0.00	-65.14M	109.25M	-7.91M	21.98M

Performance Shipping Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSHG, the sentiment is Negative. The current price of 1.37 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.52, and below the 200-day MA of 1.80, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 22.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSHG.

Performance Shipping Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSHG	64 Neutral	$17.03M	1.28	17.20%	―	-19.73%	-33.68%
CTRM	63 Neutral	$21.06M	0.68	15.48%	―	-45.58%	45.06%
Sector *	63 Neutral	$4.27B	11.40	5.38%	214.63%	4.11%	-8.98%
TOPS	57 Neutral	$27.62M	5.49	3.07%	―	3.83%	―
USEA	45 Neutral	$11.14M	―	-5.37%	19.42%	25.98%	-493.00%
EDRY	43 Neutral	$24.82M	―	-9.22%	―	28.35%	-238.53%
GLBS	40 Underperform	$23.57M	54.78	0.24%	―	11.74%	-91.84%