Stock on Watch: Ardmore Shipping Corporation (ASC)

Company Profile:

Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals to national oil companies, oil and chemical traders, and chemical companies, with its fleet of mid-size product and chemical tankers. The Company’s segment relates to the operations of its vessels. The Company’s fleet consists of over 20 double-hulled product and chemical tankers, all of which are in operation. The Company has over 30 subsidiaries, the majority of which represent single ship-owning companies for its fleet. The company was founded in 2010 and is based in Hamilton, Bermuda.

Recent News:

Seaport Global Securities issued estimates for Ardmore Shipping Corp.’s Q4 2016 earnings at $0.04 EPS, FY2016 earnings at $0.36 EPS and FY2017 earnings at $0.95 EPS.

On Aug.2, 2016, the company reported a net profit of $5.5 million for the three months ended June 30, 2016, or $0.20 basic and diluted earnings per share, as compared to $7.9 million, or $0.30 basic and diluted earnings per share, for the three months ended June 30, 2015.

On Sept.12, 2016, the company announced that the Company has taken delivery of the first three of six MR product / chemical tankers that it agreed to acquire in June 2016. The Company also announced that it has completed debt financing for its recent acquisition of six vessels.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ASC’s strengths can be seen in its strong growth and robust profitability compared with its peers. Its revenue and net income have increased greatly over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI is increasing to 45.73 with positive bias. We rate Ardmore Shipping Corporation (ASC) a STRONG BUY.

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