Performance Shipping (PSHG) AI Stock Analysis

• Market Cap: $22.00M
• Dividend Yield: N/A
• Average Volume (3M): 150.14K
• Price to Earnings (P/E): 1.1
• Beta (1Y): >-0.01
• Revenue Growth: -15.10%
• EPS Growth: -9.38%
• Country: US
• Employees: 211
• Sector: Industrials
• Sector Strength: 89
• Industry: Marine Shipping
• EPS (TTM): 0.76
• Shares Outstanding: 12,432,158
• 10 Day Avg. Volume: 79,213
• 30 Day Avg. Volume: 150,136
• PEG Ratio: <0.01
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.59
• Enterprise Value/Market Cap: -1.84
• Enterprise Value/Revenue: -0.11
• Enterprise Value/Gross Profit: -0.84
• Enterprise Value/Ebitda: -0.15
• 1Y Price Target: $4.67
• Price Target Upside: 149.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $2.00 ▲(6.95%Upside)

Performance Shipping has a strong financial foundation with excellent profitability and balance sheet metrics. Despite declining revenue and missing cash flow data, the stock benefits from a positive technical outlook and an attractive valuation with a low P/E ratio, suggesting room for appreciation. However, the lack of additional insights from earnings calls and corporate events limits a comprehensive assessment.

Positive Factors

Earnings

PSHG reported results that exceeded expectations.

Market Conditions

Aframax tanker rates increased significantly due to tightening vessel availability and rising crude oil trade demand.

Negative Factors

Fleet Management

PSHG operates with fewer ships than previously forecasted after selling a vessel and considering another sale.

Operational Performance

Cash flow from operations was down significantly year-over-year.

Revenue and Rates

PSHG’s time charter equivalent rate decreased, leading to a significant drop in annual revenue.

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 Inc. generates revenue primarily through the chartering of its tanker vessels to customers under time or voyage charter agreements. The company earns income by leasing its fleet to major oil producers, refiners, and traders who require transportation of crude oil and oil products. The charter agreements are typically based on daily hire rates, which can fluctuate based on market conditions, vessel type, and duration of the contract. Additionally, Performance Shipping may engage in spot market charters, where vessels are hired for single voyages at prevailing market rates. The company's earnings are significantly influenced by factors such as global oil demand, oil price fluctuations, and shipping capacity utilization. Strategic partnerships with established oil firms and an emphasis on operational efficiency also contribute to its financial performance.

Performance Shipping Financial Statement Overview

Summary

Performance Shipping shows strong profitability and a solid balance sheet with a low debt-to-equity ratio and high equity ratio. However, it faces challenges with declining revenue and missing cash flow data, which raises concerns about cash generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.41M	87.44M	108.94M	75.17M	36.49M	46.28M
Gross Profit	48.14M	50.11M	67.92M	37.20M	-2.49M	14.22M
EBITDA	68.45M	56.04M	93.80M	49.55M	-1.02M	10.11M
Net Income	61.73M	43.73M	69.41M	36.30M	-11.30M	1.85M
Balance Sheet
Total Assets	358.76M	330.39M	296.27M	292.98M	144.92M	157.85M
Cash, Cash Equivalents and Short-Term Investments	108.27M	70.31M	67.27M	38.73M	9.57M	21.38M
Total Debt	45.60M	47.51M	54.98M	127.84M	49.90M	57.67M
Total Liabilities	54.09M	55.15M	63.08M	137.27M	57.58M	61.06M
Stockholders Equity	304.67M	275.24M	233.18M	155.71M	87.35M	96.80M
Cash Flow
Free Cash Flow	-37.55M	12.48M	56.04M	-111.73M	-4.91M	-50.43M
Operating Cash Flow	42.43M	59.67M	67.95M	33.85M	-3.12M	13.18M
Investing Cash Flow	-24.77M	-47.41M	25.72M	-112.95M	-770.00K	-40.15M
Financing Cash Flow	-7.07M	-9.21M	-65.14M	109.25M	-7.91M	21.98M

Performance Shipping Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1.87 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.65, and above the 200-day MA of 1.71, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 59.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSHG.

Performance Shipping Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSHG	71 Outperform	$22.00M	1.14	22.49%	―	-15.10%	-9.38%
Sector *	65 Neutral	$10.82B	15.59	5.20%	1.89%	3.09%	-26.84%
CTRM	63 Neutral	$22.51M	2.63	3.07%	―	-32.07%	-9.50%
TOPS	59 Neutral	$27.76M	5.65	3.07%	―	3.83%	―
USEA	48 Neutral	$14.04M	―	-10.92%	2.62%	-2.85%	-280.26%
GLBS	47 Neutral	$23.16M	61.24	-0.43%	―	17.92%	-131.47%
EDRY	45 Neutral	$26.94M	―	-11.54%	―	10.25%	-269.52%