ASC - Ardmore Shipping: Safety In The Seas As TCE Rates May Permanently Elevate
2024-05-12 08:03:23 ET
Summary
- Shipping stocks, including Ardmore Shipping, have seen significant gains due to geopolitical tensions and odd global economic conditions.
- Ardmore Shipping has strong financials, with low debt and positive ratings on various valuation and profitability metrics.
- The company has benefited from disruptions in global shipping routes, leading to increased revenue from the shipping shortage.
- Medium Range shipping shortages will likely grow over the coming years unless global petroleum product demand falters.
- ASC appears undervalued at a forward "P/E" of 6.2X, even if we assume an eventual decline in its EPS.
The global shipping market is among the most interesting today because it, for the most part, is positively impacted by generally bad news. That is to say that shipping, particularly commodity shipping, benefits from the increased strain in geopolitical relations and tepid global economic conditions. After over a decade of poor performance, most shipping stocks have doubled, tripled, or more from their previous lows. One notable example is Ardmore Shipping ( ASC ), which recently shot up 30% after beating its sales and income for Q1, benefiting from economic trends....
Ardmore Shipping: Safety In The Seas As TCE Rates May Permanently Elevate