Top Ships (TOPS) AI Stock Analysis

• Market Cap: $27.66M
• Dividend Yield: N/A
• Average Volume (3M): 17.55K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.11
• Revenue Growth: 3.83%
• EPS Growth: N/A
• Country: US
• Employees: 1
• Sector: Energy
• Sector Strength: 45
• Industry: Marine Shipping
• EPS (TTM): 0.67
• Shares Outstanding: 4,626,197
• 10 Day Avg. Volume: 14,688
• 30 Day Avg. Volume: 17,551
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 10.30
• Enterprise Value/Revenue: 2.75
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 4.41
• 1Y Price Target: $6.00
• Price Target Upside: 1.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: $6.00 ▲(1.52% Upside)

Top Ships' overall stock score is primarily influenced by its moderate financial performance and undervaluation. The high leverage and declining net profit margins are significant risks, while the undervalued P/E ratio offers potential upside. Technical indicators suggest a neutral to slightly bearish short-term outlook.

Top Ships Business Overview & Revenue Model

Company Description

Top Ships Inc. owns and operates tanker vessels worldwide. The company's medium range tanker vessels transport crude oil, petroleum products, and bulk liquid chemicals. As of December 31, 2020, it had a fleet with a total capacity of 1,435,000 deadweight tonnes (dwt) consisting of one 50,000 dwt product/chemical tanker, five 157,000 dwt Suezmax tankers, two 300,000 dwt very large crude carriers, and two 50,000 dwt product tankers. The company was formerly known as Top Tankers Inc. and changed its name to Top Ships Inc. in December 2007. Top Ships Inc. was incorporated in 2000 and is based in Maroussi, Greece.

How the Company Makes Money

Top Ships generates revenue primarily through the chartering of its vessels, which involves leasing its ships to third-party clients for the transportation of crude oil and refined petroleum products. The company earns income from time charters, where clients pay a daily rate for the use of the vessels, and spot charters, which are typically for single voyages at market rates. Additionally, Top Ships may engage in long-term contracts with oil companies and traders, providing a more stable revenue stream. The company's financial performance is also supported by strategic partnerships and collaborations within the shipping industry, as well as its focus on fleet modernization to enhance operational efficiency and reduce costs.

Top Ships Financial Statement Overview

Summary

Top Ships exhibits moderate financial health with stable revenue growth and solid operational profitability. However, high leverage and declining net profit margins are concerning, and cash flow generation is weakening, indicating potential financial management challenges.

Income Statement

Top Ships has shown moderate revenue growth with a 3.83% increase from 2023 to 2024. The gross profit margin for 2024 is 43.74%, indicating efficiency in controlling costs relative to revenue. However, the net profit margin decreased to 5.85%, highlighting a contraction in profitability. The EBIT and EBITDA margins stand at 32.40% and 58.10% respectively, reflecting solid operational profitability but with declining trends compared to previous years.

Balance Sheet

The debt-to-equity ratio is high at 1.74, indicating significant leverage which could pose risks in volatile market conditions. The return on equity for 2024 is relatively low at 3.49%, suggesting limited returns for shareholders. The equity ratio is 34.16%, showing moderate reliance on equity financing, but the financial stability could be compromised by high debt levels.

Cash Flow

Operating cash flow has decreased significantly from 2023 to 2024, with a decline in free cash flow as well. The operating cash flow to net income ratio is 3.44, indicating strong cash generation relative to net income but declining cash flows present concerns. The free cash flow to net income ratio remains consistent, underscoring controlled capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.13M	82.95M	80.66M	56.37M	60.22M
Gross Profit	37.68M	48.46M	36.25M	20.50M	24.87M
EBITDA	50.05M	43.08M	45.83M	23.64M	28.57M
Net Income	5.03M	6.07M	18.95M	8.62M	-22.82M
Balance Sheet
Total Assets	422.77M	459.19M	469.34M	330.79M	293.03M
Cash, Cash Equivalents and Short-Term Investments	7.63M	35.96M	20.54M	2.37M	19.33M
Total Debt	251.41M	248.42M	260.93M	184.33M	147.71M
Total Liabilities	278.35M	275.81M	272.31M	237.57M	158.81M
Stockholders Equity	144.42M	183.38M	197.02M	93.22M	134.22M
Cash Flow
Free Cash Flow	17.32M	28.93M	-183.29M	-99.45M	-114.78M
Operating Cash Flow	17.32M	28.93M	33.42M	16.06M	6.04M
Investing Cash Flow	-12.40M	2.52M	-142.66M	-76.65M	181.29M
Financing Cash Flow	-33.25M	-16.04M	127.41M	43.63M	-177.28M

Top Ships Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.91
• 50DMA: Negative
• 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 TOPS, the sentiment is Negative. The current price of 5.91 is below the 20-day moving average (MA) of 6.03, below the 50-day MA of 6.16, and above the 200-day MA of 5.91, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 43.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TOPS.

Top Ships Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRM	69 Neutral	$20.10M	2.34	-5.58%	―	-29.15%	-118.42%
Sector *	68 Neutral	S$1.95B	45.15	5.45%	2.33%	4.53%	-60.69%
PSHG	67 Neutral	$22.42M	0.91	21.39%	―	-7.48%	3.08%
TOPS	61 Neutral	$27.66M	5.50	3.07%	―	3.83%	―
PXS	51 Neutral	$26.63M	5.24	2.93%	―	-10.94%	-100.28%
EDRY	49 Neutral	$30.16M	―	-14.42%	―	-13.96%	-498.96%
GLBS	42 Neutral	$20.99M	61.24	-0.43%	―	17.92%	-131.47%