Himalaya Shipping Ltd. (HSHP)
Valuation Overview•Is Himalaya Shipping Ltd. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 58/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
HSHP exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 54.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $33.6M | +6.7% | — | — | — | |
| EBITDA | $17.2M | — | — | — | — | |
| Net Income | $5.0M | -15.9% | — | — | — | |
| EPS (Diluted) | $0.11 | -20.8% | — | — | — | |
| Free Cash Flow | $9.8M | +120.1% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 68.6% | 69.1% | 69.1% | 69.1% |
| Operating Margin | 54.9% | 48.5% | 48.5% | 48.5% |
| Net Margin | 20.3% | 11.5% | 11.5% | 11.5% |
| FCF Margin | 42.6% | -425.2% | -425.2% | -425.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.13 | $0.11 | -13.8% | ||
| Q1'26 | $0.30 | $0.29 | -4.0% | ||
| Q4'25 | $0.20 | $0.21 | +5.0% | ||
| Q3'25 | $0.02 | $0.02 | +0.0% | ||
| Q2'25 | $-0.15 | $-0.14 | +5.9% | ||
| Q1'25 | $0.07 | $0.02 | -71.3% | ||
| Q4'24 | $0.29 | $0.24 | -17.4% | ||
| Q3'24 | $0.19 | $0.16 | -17.4% |
Total return is +147.0% (1Y), outperforming the benchmark by +126.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +66.6% | +59.3% | — |
| 1Y | +147.0% | +126.1% | +18.5% |
| 3YCAGR | +41.4% | +18.8% | +34.5% |
| 5YCAGR | +22.5% | +12.0% | +33.7% |
| 10YCAGR | +10.7% | -2.5% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Himalaya Shipping Ltd. (HSHP) valuation, health, and returns.
Based on peer relative multiples, Himalaya Shipping Ltd. appears Expensive versus peers compared to industry peers.
Himalaya Shipping Ltd. has multiple valuation anchors: Peer Relative Fair Value: $10.17. A convergence of these signals offers higher conviction.
Himalaya Shipping Ltd. displays fair financial health with a composite quality score of 58/100, supported by a Altman Z-Score of 0.1 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 6.1%.
Himalaya Shipping Ltd. pays a 4.5% dividend yield, covered by a 156% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Himalaya Shipping Ltd.'s current growth trajectory is Stable. The company achieved +6.7% 1Y revenue growth and -20.8% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Sell based on 1 analysts, beating EPS expectations in 25% of recent quarters with a -2-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Himalaya Shipping Ltd. include: -18.1% 1-year max drawdown, elevated distress risk, stretched payout ratio. Volatility risk is characterized by a beta of 0.82x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.