(HSHP) Himalaya Shipping - Overview
Sector: Industrials | Industry: Marine Shipping | Exchange: NYSE (USA) | Market Cap: 750m USD | Total Return: 196.8% in 12m
Industry Rotation: +11.0
Avg Turnover: 4.31M
Warnings
High Debt/EBITDA (6.7) with thin interest coverage (1.3)
Altman Z'' 0.82 < 1.0 - financial distress zone
Tailwinds
Leader, Tailwind
Himalaya Shipping Ltd. (HSHP) is a Bermuda-based marine transportation company specializing in the ownership and operation of a large-scale dry bulk fleet. The company focuses on the Newcastlemax segment, maintaining 12 vessels each with a deadweight capacity of approximately 210,000 tons to transport essential commodities for global trading and energy firms.
Newcastlemax vessels represent the largest class of ships capable of entering the port of Newcastle, Australia, offering significant economies of scale for long-haul iron ore and coal routes. This business model relies on high-volume efficiency, as these vessels are typically more fuel-efficient and carry larger payloads than standard Capesize ships. For deeper insights into the underlying valuation of these maritime assets, ValueRay provides comprehensive data tools.
Incorporated in 2021, the firm serves as a modern entrant in the dry bulk sector, positioning its fleet to meet the logistics demands of the global energy transition and multi-modal transport networks. The company’s operations are centralized in Hamilton, Bermuda, targeting high-capacity maritime logistics contracts.
- Iron ore demand from Chinese steel production dictates Newcastlemax freight rates
- Dual-fuel LNG engine adoption reduces bunker fuel costs and carbon taxes
- High dividend payout policy correlates share price with quarterly free cash flow
- Brazilian and Australian iron ore export volumes drive vessel utilization rates
- Global dry bulk fleet supply constraints support long-term daily charter premiums
| Net Income: 17.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 35.23 > 1.0 |
| NWC/Revenue: 2.35% < 20% (prev -7.28%; Δ 9.63% < -1%) |
| CFO/TA 0.06 > 3% & CFO 51.7m > Net Income 17.7m |
| Net Debt (656.8m) to EBITDA (98.2m): 6.69 < 3 |
| Current Ratio: 1.08 > 1.5 & < 3 |
| Outstanding Shares: last quarter (46.7m) vs 12m ago 6.33% < -2% |
| Gross Margin: 71.96% > 18% (prev 0.58%; Δ 7.14k% > 0.5%) |
| Asset Turnover: 15.12% > 50% (prev 14.04%; Δ 1.08% > 0%) |
| Interest Coverage Ratio: 1.34 > 6 (EBITDA TTM 98.2m / Interest Expense TTM 51.5m) |
| A: 0.00 (Total Current Assets 39.7m - Total Current Liabilities 36.6m) / Total Assets 863.9m |
| B: 0.04 (Retained Earnings 37.3m / Total Assets 863.9m) |
| C: 0.08 (EBIT TTM 69.0m / Avg Total Assets 872.0m) |
| D: 0.12 (Book Value of Equity 84.0m / Total Liabilities 702.2m) |
| Altman-Z'' Score: 0.82 = B |
| DSRI: 0.53 (Receivables 700k/1.25m, Revenue 131.9m/123.6m) |
| GMI: 0.81 (GM 71.96% / 58.00%) |
| AQI: 1.26 (AQ_t 0.00 / AQ_t-1 0.00) |
| SGI: 1.07 (Revenue 131.9m / 123.6m) |
| TATA: -0.04 (NI 17.7m - CFO 51.7m) / TA 863.9m) |
| Beneish M-Score: -3.43 (Cap -4..+1) = AA |
Over the past week, the price has changed by -3.14%, over one month by +13.66%, over three months by +25.87% and over the past year by +196.84%.
- StrongBuy: 0
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 11.4 | -27.5% |
P/E Forward = 10.1523
P/S = 5.6834
P/B = 4.7173
Revenue TTM = 131.9m USD
EBIT TTM = 69.0m USD
EBITDA TTM = 98.2m USD
Long Term Debt = 665.6m USD (from longTermDebt, last quarter)
Short Term Debt = 23.6m USD (from shortTermDebt, last quarter)
Debt = 689.2m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 656.8m USD (from netDebt column, last quarter)
Enterprise Value = 1.41b USD (749.6m + Debt 689.2m - CCE 32.4m)
Interest Coverage Ratio = 1.34 (Ebit TTM 69.0m / Interest Expense TTM 51.5m)
EV/FCF = 27.20x (Enterprise Value 1.41b / FCF TTM 51.7m)
FCF Yield = 3.68% (FCF TTM 51.7m / Enterprise Value 1.41b)
FCF Margin = 39.21% (FCF TTM 51.7m / Revenue TTM 131.9m)
Net Margin = 13.44% (Net Income TTM 17.7m / Revenue TTM 131.9m)
Gross Margin = 71.96% ((Revenue TTM 131.9m - Cost of Revenue TTM 37.0m) / Revenue TTM)
Gross Margin QoQ = 81.95% (prev 80.21%)
Tobins Q-Ratio = 1.63 (Enterprise Value 1.41b / Total Assets 863.9m)
Interest Expense / Debt = 1.84% (Interest Expense 12.7m / Debt 689.2m)
Taxrate = 0.0% (0.0 / 13.5m)
NOPAT = 69.0m (EBIT 69.0m * (1 - 0.00%))
Current Ratio = 1.08 (Total Current Assets 39.7m / Total Current Liabilities 36.6m)
Debt / Equity = 4.26 (Debt 689.2m / totalStockholderEquity, last quarter 161.7m)
Debt / EBITDA = 6.69 (Net Debt 656.8m / EBITDA 98.2m)
Debt / FCF = 12.70 (Net Debt 656.8m / FCF TTM 51.7m)
Total Stockholder Equity = 160.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.03% (Net Income 17.7m / Total Assets 863.9m)
RoE = 11.02% (Net Income TTM 17.7m / Total Stockholder Equity 160.9m)
RoCE = 8.35% (EBIT 69.0m / Capital Employed (Equity 160.9m + L.T.Debt 665.6m))
RoIC = 8.03% (NOPAT 69.0m / Invested Capital 859.4m)
WACC = 5.20% (E(749.6m)/V(1.44b) * Re(8.28%) + D(689.2m)/V(1.44b) * Rd(1.84%) * (1-Tc(0.0)))
Discount Rate = 8.28% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 81.65 | Cagr: 3.12%
[DCF] Terminal Value 80.82% ; FCFF base≈51.7m ; Y1≈33.9m ; Y5≈15.5m
[DCF] Fair Price = N/A (negative equity: EV 492.8m - Net Debt 656.8m = -164.0m; debt exceeds intrinsic value)
EPS Correlation: 50.45 | EPS CAGR: 33.47% | SUE: -0.20 | # QB: 0
Revenue Correlation: 80.75 | Revenue CAGR: 135.9% | SUE: 0.49 | # QB: 0