Ardmore Shipping Corporation Fundamental Analysis (NYSE: ASC)
Ardmore Shipping Corporation (NYSE: ASC) shows moderate financial fundamentals with a PE ratio of 7.07, profit margin of 29.67%, and ROE of 16.52%. The company generates $0.4B in annual revenue with weak year-over-year growth of -23.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ASC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentASC demonstrates superior asset utilization.
Valuation Score
ExcellentASC trades at attractive valuation levels.
Growth Score
WeakASC faces weak or negative growth trends.
Financial Health Score
ExcellentASC maintains a strong and stable balance sheet.
Profitability Score
ExcellentASC achieves industry-leading margins.
Key Financial Metrics
Is ASC Expensive or Cheap?
P/E Ratio
ASC trades at 7.07 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ASC's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Ardmore Shipping Corporation at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.19 times EBITDA. This is generally considered low.
How Well Does ASC Make Money?
Net Profit Margin
For every $100 in sales, Ardmore Shipping Corporation keeps $29.67 as profit after all expenses.
Operating Margin
Core operations generate 31.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.52 in profit for every $100 of shareholder equity.
ROA
Ardmore Shipping Corporation generates $14.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ardmore Shipping Corporation generates strong operating cash flow of $127.15M, reflecting robust business health.
Free Cash Flow
Ardmore Shipping Corporation produces free cash flow of $13.42M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
ASC converts 1.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How ASC Stacks Against Its Sector Peers
| Metric | ASC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.07 | 30.00 | Better (Cheaper) |
| ROE | 16.52% | 1114.00% | Weak |
| Net Margin | 29.67% | -25184.00% (disorted) | Strong |
| Debt/Equity | 0.05 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 5.45 | 21.63 | Strong Liquidity |
| ROA | 14.42% | -1320908.00% (disorted) | Strong |
ASC outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ardmore Shipping Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.54%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
583.84%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
26.34%
Industry Style: Cyclical, Value, Infrastructure
High Growth