OTCPK:ASCJ.F

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

Fundamentals

Reasonable growth potential second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

ASCJ.F

0.3%

US Shipping

0.4%

US Market


1 Year Return

-6.6%

ASCJ.F

0.3%

US Shipping

6.9%

US Market

Return vs Industry: ASCJ.F underperformed the US Shipping industry which returned 0.3% over the past year.

Return vs Market: ASCJ.F underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

ASCJ.FIndustryMarket
7 Day0.8%0.3%0.4%
30 Day3.5%1.9%-1.1%
90 Dayn/a3.5%-0.5%
1 Year-2.3%-6.6%2.0%0.3%9.3%6.9%
3 Year29.0%10.4%21.4%13.1%45.8%36.4%
5 Year-18.9%-30.6%-59.4%-62.5%62.9%45.1%

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

No news available

Valuation

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

31.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ASCJ.F ($3.83) is trading below our estimate of fair value ($5.6)

Significantly Undervalued: ASCJ.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ASCJ.F is poor value based on its PE Ratio (51.7x) compared to the Shipping industry average (26x).

PE vs Market: ASCJ.F is poor value based on its PE Ratio (51.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ASCJ.F is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ASCJ.F is overvalued based on its PB Ratio (1.4x) compared to the US 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 1 analyst?

80.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASCJ.F's forecast earnings growth (80.6% per year) is above the savings rate (2.7%).

Earnings vs Market: ASCJ.F's earnings (80.6% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: ASCJ.F's revenue (7.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ASCJ.F's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ASCJ.F's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has American Shipping performed over the past 5 years?

-13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ASCJ.F's earnings have declined by -13.5% per year over the past 5 years.

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

Earnings vs Industry: ASCJ.F had negative earnings growth (-77.1%) over the past year, making it difficult to compare to the Shipping industry average (-62.3%).


Return on Equity

High ROE: ASCJ.F's Return on Equity (2.6%) is considered low.


Return on Assets

ROA vs Industry: ASCJ.F has a higher Return on Assets than the Shipping industry average last year.


Return on Capital Employed

ROCE Improving: ASCJ.F has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is American Shipping's financial position?


Financial Position Analysis

Short Term Liabilities: ASCJ.F's short term assets ($57.4M) exceeds its short term liabilities ($53.2M)

Long Term Liabilities: ASCJ.F's short term assets (57.4M) do not cover its long term liabilities (557.1M)


Debt to Equity History and Analysis

Debt Level: ASCJ.F's debt to equity ratio (346.7%) is considered high

Reducing Debt: ASCJ.F's debt to equity ratio has increased from 328% to 346.7% over the past 5 years.

Debt Coverage: ASCJ.F's debt is not well covered by operating cash flow (7.5%).

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


Balance Sheet

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

Debt Coverage by Assets: ASCJ.F'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?

8.54%

Current Dividend Yield


Dividend Yield vs Market

company8.5%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years10.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ASCJ.F's dividend (8.54%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ASCJ.F's dividend (8.54%) is in the top 25% of dividend payers in the US market (3.73%)

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

Growing Dividend: ASCJ.F 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 (441.8%), ASCJ.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASCJ.F's dividends in 3 years are forecast to be covered by earnings (86.3% payout ratio).


Next Steps

Management

What is the CEO of American Shipping's salary, the management and board of directors tenure and is there insider trading?

11.3yrs

Average management tenure


CEO

Pal Magnussen (47yo)

4.8yrs

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: Pal's total compensation ($USD891.06K) is about average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

11.3yrs

Average Tenure

47yo

Average Age

Experienced Management: ASCJ.F's management team is seasoned and experienced (11.3 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

61yo

Average Age

Experienced Board: ASCJ.F's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Jeff Theisen (51yo)

    Vice President of Finance

    • Tenure: 12.4yrs
    • Compensation: US$133.06k
  • Scott Clapham (45yo)

    Vice President of Engineering and Business Development

    • Tenure: 14yrs
  • Leigh Jaros

    Controller

    • Tenure: 11.3yrs
    • Compensation: US$261.75k
  • Pal Magnussen (47yo)

    CEO & President

    • Tenure: 4.8yrs
    • Compensation: US$891.06k
  • Morten Bakke

    Chief Financial Officer

    • Tenure: 3.5yrs
    • Compensation: US$524.93k

Board Members

  • Annette Beate Wacknitz Justad (61yo)

    Chairman of the Board

    • Tenure: 9.5yrs
  • Peter Knudsen (62yo)

    Director

    • Tenure: 7.6yrs
  • Kristian Røkke (36yo)

    Director

    • Tenure: 1.5yrs

Company Information

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


Key Information

  • Name: American Shipping Company ASA
  • Ticker: ASCJ.F
  • Exchange: OTCPK
  • Founded: 2005
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: kr2.085b
  • Listing Market Cap: kr227.066m
  • 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:08
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.