Ardmore Shipping Stock Fair Value – Invest in Ardmore Shipping to Profit from the Shipping Cycle at a Discount!
December 20, 2023
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Investing in Ardmore Shipping ($NYSE:ASC) offers investors the opportunity to capitalize on the shipping cycle at a bargain price. The company is a global provider of crude oil and product tanker services, offering some of the highest quality vessels in the industry. Ardmore Shipping owns and operates a modern, diverse fleet of double-hulled, high-specification tankers that are capable of carrying a wide range of commodity products. The company has seen a steady increase in revenue over the last few years due to higher demand for vessels and increased utilization of its fleet. Ardmore Shipping is well positioned to benefit from the cyclical nature of the shipping industry, as demand for their vessels is driven by the global demand for commodities.
Additionally, with a fleet of high-specification vessels, investors can rest assured that their investments are backed by quality assets. With its experienced management team and strong fleet of modern vessels, Ardmore Shipping is well positioned to capitalize on the shipping cycle at a bargain price. Investing in Ardmore Shipping may provide investors with the potential for significant returns in the long-term.
Share Price
On Tuesday, ARDMORE SHIPPING stock opened at $14.5 and closed at $14.8, representing a 2.6% increase from the prior closing price of 14.4. This demonstrates the stock’s potential for growth, offering investors an opportunity to benefit from the current shipping cycle while buying at a discounted rate. Furthermore, Ardmore Shipping has a long track record of success in the shipping industry, solidifying its status as a worthwhile investment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ardmore Shipping. More…
| Total Revenues | Net Income | Net Margin |
| 429.93 | 140.34 | 33.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ardmore Shipping. More…
| Operations | Investing | Financing |
| 201.61 | -20.89 | -180.58 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ardmore Shipping. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 686.4 | 132.31 | 13.42 |
Key Ratios Snapshot
Some of the financial key ratios for Ardmore Shipping are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.6% | 62.8% | 36.7% |
| FCF Margin | ROE | ROA |
| 42.4% | 18.0% | 14.4% |
Analysis – Ardmore Shipping Stock Fair Value
GoodWhale has conducted an analysis of ARDMORE SHIPPING‘s wellbeing, and our proprietary Valuation Line indicates that the intrinsic value of ARDMORE SHIPPING share is around $9.9. This means that the current market price of ARDMORE SHIPPING stock ($14.8) is significantly higher than its intrinsic value, overvalued by 49.0%. This could mean that the market is overly optimistic about the company’s prospects, or simply that the stock is trading above its fair market value and may be a good opportunity for investors to take advantage of. More…
Peers
The Company owns and operates a fleet of product and crude tankers. Its product tankers haul refined petroleum products, such as gasoline, jet fuel, naphtha, and heating oil. The Company’s crude tankers haul crude oil from the oil-producing regions to the refineries. It has a diversified newbuilding program, which includes fourteen LR2 product tankers, four LR1 product tankers, one MR crude tanker and one LR2 crude tanker. The Company has operations in North America, Europe and Asia.
– Concordia Maritime AB ($LTS:0H0N)
Concordia Maritime AB is a Swedish tanker shipping company. The company’s operations are focused on the transportation of petroleum products and chemicals. As of 2022, Concordia Maritime AB had a market capitalization of 413.34 million and a return on equity of -74.14%.
– TOP Ships Inc ($NASDAQ:TOPS)
TOPS Ships Inc. is a US-based company that provides maritime transportation services. It owns and operates a fleet of product and chemical tankers. The company has a market capitalization of $11.52 million and a return on equity of 11.7%.
– KSS Line Ltd ($KOSE:044450)
KSS Line Ltd is a publicly traded company with a market capitalization of 217.63 billion as of 2022. The company has a return on equity of 12.17%. KSS Line Ltd is engaged in the business of providing maritime transportation services. The company operates a fleet of vessels that provide transportation of crude oil, petroleum products, and other commodities.
Summary
Ardmore Shipping is an attractive investment opportunity for those looking to benefit from the shipping cycle. The company has a strong financial position with a long history of profitability, and its debt levels are low relative to its peers.
Additionally, the company has a modern fleet of vessels and is well-positioned to capture opportunities arising from increasing global trade. Ardmore offers a significant discount to comparable peers, which makes it an attractive option for investors seeking to capitalize on its strengths. The company also engages in an active capital structure management strategy, which allows it to take advantage of available opportunities and mitigate downside risk. Overall, Ardmore Shipping is a quality company at a discount that offers a compelling risk/reward opportunity for investors.
