OB:AMSC

Stock Analysis Report

Executive Summary

American Shipping Company ASA, through its subsidiaries, operates as a ship owning and lease finance company in the United States.


Snowflake Analysis

Moderate growth potential and slightly overvalued.

Share Price & News

How has American Shipping's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMSC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

AMSC

-1.8%

NO Shipping

-0.3%

NO Market


1 Year Return

0.3%

AMSC

-2.1%

NO Shipping

-1.2%

NO Market

Return vs Industry: AMSC exceeded the Norwegian Shipping industry which returned -2.4% over the past year.

Return vs Market: AMSC exceeded the Norwegian Market which returned -1.3% over the past year.


Shareholder returns

AMSCIndustryMarket
7 Day-1.5%-1.8%-0.3%
30 Day-2.1%-5.6%-3.6%
90 Day-9.1%5.3%2.2%
1 Year9.2%0.3%1.2%-2.1%4.2%-1.2%
3 Year49.3%14.6%-11.7%-18.2%29.6%13.1%
5 Year85.3%9.9%-1.6%-14.1%55.9%20.5%

Price Volatility Vs. Market

How volatile is American Shipping's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Shipping undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMSC (NOK32.1) is trading below our estimate of fair value (NOK77.21)

Significantly Below Fair Value: AMSC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMSC is poor value based on its PE Ratio (43.6x) compared to the Shipping industry average (11.7x).

PE vs Market: AMSC is poor value based on its PE Ratio (43.6x) compared to the Norwegian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMSC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: AMSC is overvalued based on its PB Ratio (1.3x) compared to the NO Shipping industry average (0.6x).


Next Steps

Future Growth

How is American Shipping forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

40.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMSC's forecast earnings growth (40.2% per year) is above the savings rate (0.7%).

Earnings vs Market: AMSC's earnings (40.2% per year) are forecast to grow faster than the Norwegian market (18.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMSC's revenue (2.6% per year) is forecast to grow slower than the Norwegian market (3.3% per year).

High Growth Revenue: AMSC's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMSC's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has American Shipping performed over the past 5 years?

-12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMSC has high quality earnings.

Growing Profit Margin: AMSC's current net profit margins (5.5%) are lower than last year (20.7%).


Past Earnings Growth Analysis

Earnings Trend: AMSC's earnings have declined by -12.7% per year over the past 5 years.

Accelerating Growth: AMSC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMSC had negative earnings growth (-73.7%) over the past year, making it difficult to compare to the Shipping industry average (-23.5%).


Return on Equity

High ROE: AMSC's Return on Equity (2.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Shipping's financial position?


Financial Position Analysis

Short Term Liabilities: AMSC's short term assets ($53.0M) exceed its short term liabilities ($52.0M).

Long Term Liabilities: AMSC's short term assets ($53.0M) do not cover its long term liabilities ($546.8M).


Debt to Equity History and Analysis

Debt Level: AMSC's debt to equity ratio (346.8%) is considered high.

Reducing Debt: AMSC's debt to equity ratio has increased from 325.2% to 346.8% over the past 5 years.

Debt Coverage: AMSC's debt is not well covered by operating cash flow (7.6%).

Interest Coverage: AMSC's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet

Inventory Level: AMSC has a high level of physical assets or inventory.

Debt Coverage by Assets: AMSC's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is American Shipping's current dividend yield, its reliability and sustainability?

9.28%

Current Dividend Yield


Dividend Yield vs Market

company9.3%marketbottom25%2.9%markettop25%6.1%industryaverage4.0%forecastin3Years12.4%

Current dividend yield vs market & industry

Notable Dividend: AMSC's dividend (9.28%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.85%).

High Dividend: AMSC's dividend (9.28%) is in the top 25% of dividend payers in the Norwegian market (6.03%)


Stability and Growth of Payments

Stable Dividend: AMSC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AMSC has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (404.9%), AMSC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMSC's dividends in 3 years are not forecast to be well covered by earnings (116.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.6yrs

Average management tenure


CEO

Pål Magnussen (47yo)

5.1yrs

Tenure

US$891,060

Compensation

Mr. Pål Lothe Magnussen has been the Chief Executive Officer and President of American Shipping Company ASA since January, 2015 and served as its Chief Financial Officer from June 1, 2014 to January 1, 201 ...


CEO Compensation Analysis

Compensation vs Market: Pål's total compensation ($USD891.06K) is above average for companies of similar size in the Norwegian market ($USD462.45K).

Compensation vs Earnings: Pål's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pål Magnussen
CEO & President5.1yrsUS$891.06k0.082% $1.6m
Morten Bakke
Chief Financial Officer3.8yrsUS$524.93k0.041% $802.4k
Leigh Jaros
Business Controller & Finance Manager11.6yrsUS$261.75kno data
Scott Clapham
Vice President of Engineering and Business Development14.3yrsno datano data
Jeffrey Theisen
Vice President of Finance12.8yrsUS$133.06kno data

11.6yrs

Average Tenure

47yo

Average Age

Experienced Management: AMSC's management team is seasoned and experienced (11.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Annette Beate Wacknitz Justad
Chairman of the Board9.8yrsno data0.0075% $145.2k
Peter Knudsen
Director7.9yrsno data0.0033% $64.2k
Kristian Røkke
Director1.8yrsno datano data

7.9yrs

Average Tenure

61yo

Average Age

Experienced Board: AMSC's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American Shipping Company ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Shipping Company ASA
  • Ticker: AMSC
  • Exchange: OB
  • Founded: 2005
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: kr1.946b
  • Shares outstanding: 60.62m
  • Website: https://www.americanshippingco.com

Number of Employees


Location

  • American Shipping Company ASA
  • Building B
  • Oksenøyveien 10
  • Lysaker
  • Akershus
  • 1366
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMSCOB (Oslo Bors)YesOrdinary SharesNONOKJul 2005
0JE5LSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 2005
ASCJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2005
AMSCOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJul 2005

Biography

American Shipping Company ASA, through its subsidiaries, operates as a ship owning and lease finance company in the United States. It is involved in the purchase and bareboat chartering of product tankers, shuttle tankers, and other vessels to operators and end users in the Jones Act market. American Shipping Company ASA operates a fleet of 9 product tankers and 1 shuttle tanker. The company was formerly known as Aker American Shipping ASA and changed its name to American Shipping Company ASA in June 2008. American Shipping Company ASA was founded in 2005 and is headquartered in Lysaker, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 21:04
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.