Company Overview
Performance Shipping Inc. operates within the Industrials sector, specifically focusing on the Marine Shipping industry, by providing essential shipping transportation services through its global fleet of tanker vessels. As of December 31, 2024, the company executes its operations through a specialized fleet comprising six Aframax tanker vessels with a combined carrying capacity of 630,519 DWT, facilitating the movement of liquid cargo worldwide. The organization is incorporated in 2010 and maintains its headquarters in Athens, reflecting its established presence in the maritime logistics landscape. Currently, the company holds a market capitalization of $22.75M and reported trailing twelve-month revenue of $84.17M, while specific employee count data is not publicly disclosed in the available records. These valuation and revenue figures indicate that the company operates on a small-cap scale within the broader marine shipping ecosystem, positioning it as a niche player rather than a dominant market leader with massive capitalization.
Financial Health
Performance Shipping Inc. generated revenue of $84.17M over the trailing twelve-month period, resulting in a net income of $48.14M and an EBITDA of $45.37M. The substantial gap between the $84.17M revenue and the $48.14M net income reveals a highly efficient cost structure where operating expenses and depreciation remain relatively low compared to total sales, contributing to exceptional profitability. However, the available facts list free cash flow as N/A, which limits the ability to assess immediate operational liquidity derived from cash generation, though the company holds $49.26M in cash against $222.33M in total debt. The gross margin stands at 68.2%, indicating that the company retains a significant portion of each sales dollar before accounting for operating expenses, a common characteristic of shipping contracts with fixed rates. The operating margin is 38.9%, and the profit margin reaches 59.4%, demonstrating that the vast majority of revenue translates into bottom-line profit after all corporate and operational costs are deducted. While cash on hand is $49.26M, the company carries $222.33M in debt, resulting in a debt-to-equity ratio of 68.74, which suggests a highly leveraged balance sheet typical of capital-intensive shipping industries. The current ratio is listed as N/A, preventing a direct assessment of short-term liquidity relative to current liabilities using this specific metric. Return on Equity is 16.7%, while Return on Assets is 4.6%, revealing that management is effective at generating returns on the equity invested, though the return on assets is lower due to the significant asset base required for the fleet.
Valuation Assessment
The trailing twelve-month P/E ratio is 1.43, while the forward P/E is projected at 1.69. The slight increase from the trailing to the forward P/E implies that the market expects earnings to decline or grow at a rate that, when adjusted for the lower trailing multiple, results in a slightly higher valuation multiple for the upcoming period. The price-to-book ratio is 0.07, indicating that the stock is trading at a significant discount to its book value, which is typical for cyclical shipping stocks where asset values fluctuate with market freight rates. Alternative valuation metrics show a price-to-sales ratio of 0.27 and an EV/EBITDA of 4.32, suggesting the market values the company at a fraction of its sales and earnings relative to traditional industrial peers. Over the last year, the stock has traded between a 52-week high of $2.58 and a 52-week low of $1.31. Without a specific current price provided in the facts to calculate a precise percentage deviation, the stock's position is defined by this established trading range which captures the volatility of the sector. The beta is -0.33, a unique and rare statistic indicating that the stock's price movements have historically moved inversely to the broader market or displayed a negative correlation, suggesting a distinct volatility profile compared to standard industrial equities.
Growth & Income
Over the past year, the company experienced revenue growth of 20.7%, whereas earnings growth was negative at -22.6%. This divergence indicates that while top-line sales increased significantly, the net income contracted sharply, implying that costs rose faster than revenue or that non-operating factors impacted the bottom line despite the sales expansion. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Since there is no dividend distribution, the company effectively reinvests all available earnings back into the business, likely into maintaining the fleet or paying down the substantial debt load. The overall growth and income profile presents a scenario of expanding revenue coupled with a recent contraction in net income, with no reliance on dividend income for shareholders.