Himalaya Shipping Ltd. Fundamental Analysis
Himalaya Shipping Ltd. (HSHP) shows moderate financial fundamentals with a PE ratio of 23.09, profit margin of 20.28%, and ROE of 18.28%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 6.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HSHP's fundamental strength across five key dimensions:
Efficiency Score
WeakHSHP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHSHP trades at attractive valuation levels.
Growth Score
ModerateHSHP shows steady but slowing expansion.
Financial Health Score
WeakHSHP carries high financial risk with limited liquidity.
Profitability Score
ExcellentHSHP achieves industry-leading margins.
Key Financial Metrics
Is HSHP Expensive or Cheap?
P/E Ratio
HSHP trades at 23.09 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HSHP's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Himalaya Shipping Ltd. at 4.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.19 times EBITDA. This is generally considered low.
How Well Does HSHP Make Money?
Net Profit Margin
For every $100 in sales, Himalaya Shipping Ltd. keeps $20.28 as profit after all expenses.
Operating Margin
Core operations generate 54.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.28 in profit for every $100 of shareholder equity.
ROA
Himalaya Shipping Ltd. generates $3.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Himalaya Shipping Ltd. generates strong operating cash flow of $61.80M, reflecting robust business health.
Free Cash Flow
Himalaya Shipping Ltd. generates strong free cash flow of $61.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.31 in free cash annually.
FCF Yield
HSHP converts 9.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How HSHP Stacks Against Its Sector Peers
| Metric | HSHP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.09 | 25.90 | Better (Cheaper) |
| ROE | 18.28% | 1248.00% | Weak |
| Net Margin | 20.28% | -35020.00% (disorted) | Strong |
| Debt/Equity | 4.39 | 0.74 | Weak (High Leverage) |
| Current Ratio | 0.95 | 9.99 | Weak Liquidity |
| ROA | 3.43% | -1489331.00% (disorted) | Weak |
HSHP outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Himalaya Shipping Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
814.74%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
4275.35%
Industry Style: Cyclical, Value, Infrastructure
High Growth