Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of tankers. The company was founded in 2010 and is based in Hamilton, Bermuda.
ASC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ardmore Shipping Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ardmore Shipping Corp ranked in the 86th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1304.67%. The most interesting components of our discounted cash flow analysis for Ardmore Shipping Corp ended up being:
18% of the company's capital comes from equity, which is greater than merely 7.08% of stocks in our cash flow based forecasting set.
Ardmore Shipping Corp's weighted average cost of capital (WACC) is 17%; for context, that number is higher than 95.92% of tickers in our DCF set.
As a business, Ardmore Shipping Corp experienced a tax rate of about 1% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than only 23.25% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ASC, try DAC, LXFR, SFL, OSK, and ACA.
Note: This report was published July 17, 2020, on Value Investor's Edge. Overview During 2009-2018, shipping was defined by a massive bear market which saw fleeting bull runs. But shipping is highly cyclical. This cyclicality hit a tipping point in 2018, when we began ushering in a new dynamic. One...
Ardmore Shipping Corporation (ASC) Q2 2020 Results Earnings Conference Call July 28, 2020 10:00 AM ET Company Participants Anthony Gurnee - President & Chief Executive Officer Paul Tivnan - Senior Vice President & Chief Financial Officer Conference Call Participants Jon Chappell - Evercore ISI Chris Tsung - Webber Research and...
Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore" or the "Company") today announced that the Company plans to announce its second quarter earnings before the market opens on Tuesday, July 28, 2020 and will host a conference call later in the day at 10:00 a.m. Eastern Time. The conference call and slide presentation will also be broadcast live over the Internet.