Ardmore Shipping Corporation (ASC) | Investment Case

1. Company Snapshot

1.a. Company Description

Ardmore Shipping Corporation engages in the seaborne transportation of petroleum products and chemicals worldwide.As of February 15, 2022, the company operated a fleet of 25 double-hulled product and chemical tankers.It serves oil majors, oil companies, oil and chemical traders, chemical companies, and pooling service providers.

The company was founded in 2010 and is based in Pembroke, Bermuda.

Show Full description

1.b. Last Insights on ASC

Ardmore Shipping Corporation's recent performance was negatively impacted by low tanker rates and high costs, which likely affected its Q4 2024 earnings. The company's modern fleet and low leverage are positives, but its undervalued status and potential takeover candidate status are not directly related to its recent performance. The recent earnings release highlighted adjusted earnings of $10.3 million for the three months ended December 31, 2024, or $0.25 per basic and diluted share, compared to $26.1 million, or $0.63 per basic and diluted share for the same period in 2023.

1.c. Company Highlights

2010 - Ardmore Shipping Corporation was founded by Anthony Gurnee, the current CEO, with a focus on providing high-quality, customer-focused tanker shipping services.

2013 - Ardmore Shipping Corporation took delivery of its first vessel, the Ardmore Seavaliant, marking the beginning of its growth as a tanker shipping company.

2014 - Ardmore Shipping Corporation listed on the New York Stock Exchange (NYSE) under the ticker symbol ASC, raising $140 million in its initial public offering (IPO).

2015 - Ardmore Shipping Corporation expanded its fleet to 15 vessels, solidifying its position as a mid-sized tanker shipping company.

2017 - Ardmore Shipping Corporation took delivery of its first Eco-design tanker, the Ardmore Dauntless, which features improved fuel efficiency and reduced emissions.

2019 - Ardmore Shipping Corporation expanded its fleet to 25 vessels, further increasing its capacity and capabilities.

2020 - Ardmore Shipping Corporation implemented a range of sustainability initiatives, including the use of low-sulfur fuels and energy-efficient technologies.

Last Price	11.83
Change Percentage	-1.09%
Open	11.97
Previous Close	11.96
Market Cap ( Millions)	481
Volume	362833
Year High	13.85
Year Low	8.32
M A 50	12.2
M A 200	10.77

FCF Yield	17.12%
Dividend Yield	2.54%
ROE	7.26%
Debt / Equity	4.43%
Net Debt / EBIDTA	-23.84%
Price To Book	0.74
Price Earnings Ratio	10.24
Price To FCF	5.84
Price To sales	1.49
EV / EBITDA	5.27

2. Ardmore Shipping's Q3 2025 Earnings: A Strong Performance Amidst Evolving Market Trends

Ardmore Shipping reported adjusted earnings of $12.6 million or $0.31 per share for the third quarter of 2025, missing analyst estimates of $0.385 per share. The company's TCE performance remained exceptionally strong, with MR tankers earning $24,700 per day for the quarter and $24,900 so far in the fourth quarter, with 40% booked. Revenue growth is expected to decline by 0.9% next year, according to analyst estimates.

Publication Date: Nov -21

                                    📋 Highlights
                                    Adjusted Earnings::
                                                $12.6 million ($0.31/share) for Q3 2025, with 12th consecutive dividend (1/3 of adjusted earnings).
MR TCE Performance::
                                                $24,700/day in Q3 and $24,900/day in Q4 (40% booked), over double cash breakeven.
New Vessel Deliveries::
                                                3 modern MR tankers added, enhancing earnings power and capturing strong spot markets.
Preferred Share Redemption::
                                                $30 million fully redeemed, reducing cash breakeven and improving financial flexibility.
Vessel Appreciation::
                                                15% profit in 4 months on 3 MRs (acquired at $38M, now valued at $43–44M).

                                

Financial Performance

The company's financial performance was driven by the delivery of three modern MR tankers during the quarter, which captured strong spot markets and notable fuel savings, increasing earnings power. Ardmore Shipping has also fully redeemed its $30 million preferred shares, further reducing its cash breakeven. The company's dividend policy remains consistent, with the declaration of its 12th consecutive dividend, paying out 1/3 of adjusted earnings.

Market Trends and Outlook

Ardmore Shipping is experiencing evolving product tanker demand, driven by significant near-term disruption and tight supply-demand balances. Export volumes in refined product and transit reached record levels during the quarter, fueling robust product tanker demand. The company is well-positioned to capitalize on these trends, with a strong financial position and a minimal drydock schedule for the coming two years. As Bart Kelleher noted, "Ample oil supply is driving strong refinery throughput and trading activity," which is expected to continue to drive demand for product tankers.

Valuation and Capital Allocation

Ardmore Shipping's valuation metrics indicate a relatively attractive profile, with a P/E Ratio of 10.87, P/B Ratio of 0.79, and Dividend Yield of 3.03%. The company's strong financial position enables it to be opportunistic and resilient, with the flexibility to reinvest in the business and deliver shareholder returns. With a ROIC of 10.33% and ROE of 7.26%, Ardmore Shipping is generating returns above its cost of capital. The company's net debt to EBITDA ratio is -0.24, indicating a net cash position.

Strategy and Future Plans

Ardmore Shipping's strategy focuses on the product and chemical space, with a priority on value-enhancing transactions. The company is committed to shareholder returns through dividends and share buybacks and will continue to explore these options. With no dry docks and no real debt repayments next year, Ardmore Shipping is well-positioned to capitalize on market opportunities and maintain a competitive edge.

3. NewsRoom

American Century Companies Inc. Grows Holdings in Ardmore Shipping Corporation $ASC

Dec -03

Source: defenseworld.net

Ascletis Announces Co-formulation of ASC36, Once-Monthly Next-Generation Amylin Receptor Agonist and ASC35, Once-Monthly Next-Generation GLP-1R/GIPR Dual Agonist for Clinical Development

Nov -12

Source: prnewswire.com

Ardmore Shipping Corporation (ASC) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

Ardmore Shipping Corporation Announces Financial Results For The Three and Nine Months Ended September 30, 2025

Nov -05

Source: prnewswire.com

Ascletis Presents Full Analysis of Phase Ib Study of ASC30 Oral Tablet, Phase Ib Study of ASC30 Injection, and Preclinical Study of Combination of ASC31 and ASC47 at ObesityWeek® 2025

Nov -05

Source: prnewswire.com

Ardmore Shipping (ASC) Expected to Announce Quarterly Earnings on Wednesday

Nov -04

Source: defenseworld.net

Ascletis Selects a Best-in-Class Once-Monthly Subcutaneously Administered Amylin Receptor Agonist, ASC36, for Clinical Development

Oct -30

Source: prnewswire.com

Duly Health and Care Expands Outpatient Surgery Access Through Minority Share Acquisition of Valley ASC in Partnership with Surgery Partners

Oct -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Spot Charters

Expected Growth: 4.5%

Increasing global trade, growing demand for flexible cargo transportation, and rising need for short-term vessel rentals drive the growth of spot charters from Ardmore Shipping Corporation.

Other

Expected Growth: 4.5%

Ardmore Shipping Corporation's 'Other' segment is expected to grow driven by increasing management fees from a growing fleet, gains on sale of vessels, and miscellaneous income from diversified services.

7. Detailed Products

Tanker Fleet

Ardmore Shipping Corporation operates a fleet of tanker vessels that transport petroleum products, including crude oil, refined petroleum products, and specialty chemicals.

Chartering Services

Ardmore Shipping Corporation offers chartering services to oil majors, refiners, and traders, providing access to a fleet of modern tanker vessels.

Vessel Management

Ardmore Shipping Corporation provides vessel management services, including technical management, crew management, and commercial management.

Ship Management

Ardmore Shipping Corporation offers ship management services, including newbuilding supervision, ship repair, and dry-docking.

8. Ardmore Shipping Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Ardmore Shipping Corporation operates in a niche market with limited substitutes, but there are some alternatives available to customers.

Bargaining Power Of Customers

Ardmore Shipping Corporation has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Ardmore Shipping Corporation relies on a few key suppliers for its operations, giving them some bargaining power.

Threat Of New Entrants

The shipping industry has high barriers to entry, making it difficult for new entrants to compete with Ardmore Shipping Corporation.

Intensity Of Rivalry

The shipping industry is highly competitive, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	8.28%
Debt Cost	5.80%
Equity Weight	91.72%
Equity Cost	5.80%
WACC	5.80%
Leverage	9.03%

11. Quality Control: Ardmore Shipping Corporation passed 9 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Algoma Central

A-Score: 7.4/10

Value: 8.2

Growth: 4.4

Quality: 5.4

Yield: 9.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

Genco Shipping & Trading

A-Score: 6.1/10

Value: 4.7

Growth: 4.2

Quality: 5.2

Yield: 10.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

Ardmore Shipping

A-Score: 5.9/10

Value: 7.7

Growth: 8.9

Quality: 6.9

Yield: 6.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

SFL Corporation

A-Score: 5.5/10

Value: 6.9

Growth: 6.0

Quality: 3.3

Yield: 10.0

Momentum: 0.5

Volatility: 6.3

1-Year Total Return ->

Pangaea Logistics Solutions

A-Score: 5.2/10

Value: 7.4

Growth: 4.1

Quality: 4.2

Yield: 9.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

Cool Company

A-Score: 4.8/10

Value: 8.2

Growth: 0.9

Quality: 4.7

Yield: 7.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.84%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.80%

Ardmore Shipping Corporation - MHY0207T1001

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ASC

1.c. Company Highlights

Better Quality

Higher Yield

Higher Growth

Earnings Beats

Revenues Beats

Earnings Miss

Weak Momentum

2. Ardmore Shipping's Q3 2025 Earnings: A Strong Performance Amidst Evolving Market Trends

Financial Performance

Market Trends and Outlook

Valuation and Capital Allocation

Strategy and Future Plans

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Spot Charters

Expected Growth: 4.5%

Other

Expected Growth: 4.5%

7. Detailed Products

Tanker Fleet

Chartering Services

Vessel Management

Ship Management

8. Ardmore Shipping Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Ardmore Shipping Corporation passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.83$

Current Price

11.83$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA