Performance Shipping (PSHG) AI Stock Analysis

• Market Cap: $23.25M
• Dividend Yield: N/A
• Average Volume (3M): 97.38K
• Price to Earnings (P/E): 0.9
• Beta (1Y): 0.05
• Revenue Growth: -7.48%
• EPS Growth: 3.08%
• Country: US
• Employees: 211
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 0.23
• Shares Outstanding: 12,432,158
• 10 Day Avg. Volume: 53,779
• 30 Day Avg. Volume: 97,381
• PEG Ratio: -0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 1.84
• Enterprise Value/Market Cap: -1.30
• Enterprise Value/Revenue: -0.35
• Enterprise Value/Gross Profit: -0.63
• Enterprise Value/Ebitda: -0.44
• 1Y Price Target: $3.25
• Price Target Upside: 71.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $2.50 ▲(32.28% Upside)

Performance Shipping's stock score is driven primarily by its strong valuation, indicating it is undervalued, and positive technical indicators suggesting upward momentum. However, financial performance is hindered by revenue decline and unclear cash flow data, which slightly dampens the overall score.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates financial stability and low leverage risk, allowing the company to withstand market fluctuations and invest in growth opportunities.

High Profit Margins

High profit margins suggest effective cost management and pricing power, which can sustain profitability even during revenue fluctuations, supporting long-term financial health.

New Charter Contract

Securing a new charter contract enhances revenue visibility and stability, contributing to predictable cash flows and strengthening the company's market position.

Negative Factors

Revenue Decline

A significant revenue decline can indicate challenges in market demand or competitive pressures, potentially impacting long-term growth and profitability.

Inconsistent Cash Flow

Inconsistent cash flow data raises concerns about the company's ability to generate cash, which is crucial for funding operations and future investments.

Revenue Growth Challenges

Negative revenue growth highlights ongoing challenges in expanding market share or increasing sales, which could affect long-term competitive positioning and financial performance.

Performance Shipping Business Overview & Revenue Model

Company Description

Performance Shipping Inc. (PSHG) is a global shipping company primarily engaged in the transportation of crude oil and refined petroleum products. The company operates a fleet of modern tanker vessels, which are strategically deployed in various international shipping routes. PSHG focuses on providing high-quality shipping services while maintaining operational efficiency and environmental sustainability. Its core services include chartering its vessels to third parties under long-term and spot market contracts, enabling it to serve a diverse clientele within the maritime industry.

How the Company Makes Money

Performance Shipping generates revenue primarily through the chartering of its tanker vessels. The company earns income from both time charters, where vessels are leased for a specific period, and voyage charters, where vessels are hired for a particular trip. Key revenue streams include long-term contracts with oil companies and traders, as well as spot market transactions which can fluctuate based on market demand and shipping rates. Additionally, PSHG may benefit from strategic partnerships with major oil producers and trading companies that require reliable shipping services, further enhancing its revenue potential. The company’s earnings can also be influenced by market conditions, including oil prices and the global demand for shipping capacity.

Performance Shipping Financial Statement Overview

Summary

Performance Shipping showcases strong profitability and a solid balance sheet with low leverage, as indicated by high margins and a low debt-to-equity ratio. However, declining revenue and unclear cash flow data present challenges that impact the overall financial performance score.

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: Neutral
• Last Price: 1.89
• 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 Neutral. The current price of 1.89 is below the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.84, and above the 200-day MA of 1.69, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PSHG.

Performance Shipping Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSHG	74 Outperform	$23.25M	0.94	21.39%	―	-7.48%	3.08%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
TOPS	59 Neutral	$24.98M	5.02	3.07%	―	3.83%	―
USEA	56 Neutral	$15.56M	―	-10.32%	7.33%	-7.89%	-186.18%
CTRM	54 Neutral	$19.42M	2.34	-5.58%	―	-29.15%	-118.42%
EDRY	50 Neutral	$33.75M	―	-14.42%	―	-13.96%	-498.96%
GLBS	47 Neutral	$22.23M	61.24	-0.43%	―	17.92%	-131.47%