Himalaya Shipping Ltd. (HSHP)
NYSE:HSHP
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Himalaya Shipping Ltd.
(NYSE:HSHP)
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Rating:60Neutral
Price Target:
$15.50
▲(8.85% Upside)
Action:N/A
Date:06/17/26
HSHP scores moderately: strong profitability/cash generation and a positive earnings-call backdrop support the score, but the very high leverage and historically volatile free cash flow meaningfully cap it. Technicals are neutral and valuation is helped by the dividend yield but tempered by a not-cheap P/E for a cyclical, leveraged operator.
Positive Factors
Cash generation & distributions
Operative cash flow has turned positive and materially improved versus the prior year, with TTM free cash flow supporting recurring distributions. Consistent OCF above net income and a multi‑year dividend track record provide durable capacity to fund maintenance, modest growth and shareholder returns over coming quarters.
Negative Factors
Very high leverage
Extremely elevated leverage and significant sale‑leaseback obligations constrain financial flexibility and increase refinancing and covenant risk if rates or asset values deteriorate. High fixed interest and lease commitments magnify downside in cyclical rate downturns and limit capacity for opportunistic investments or buybacks.
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Positive Factors
Negative Factors
Cash generation & distributions
Operative cash flow has turned positive and materially improved versus the prior year, with TTM free cash flow supporting recurring distributions. Consistent OCF above net income and a multi‑year dividend track record provide durable capacity to fund maintenance, modest growth and shareholder returns over coming quarters.
Read all positive factors
Himalaya Shipping Ltd. (HSHP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$627.03M
Dividend Yield6.37%
Average Volume (3M)172.96K
Price to Earnings (P/E)21.0
Beta (1Y)0.97
Revenue Growth17.65%
EPS Growth124.27%
CountryUS
Employees3
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.63
Shares Outstanding47,145,000
10 Day Avg. Volume125,231
30 Day Avg. Volume172,957
Financial Highlights & Ratios
PEG Ratio-1.15
Price to Book (P/B)2.62
Price to Sales (P/S)3.21
P/FCF Ratio8.20
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue9.29
Enterprise Value/Gross Profit13.54
Enterprise Value/Ebitda12.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.8
Revenue Forecast (FY)$194.96M
Himalaya Shipping Ltd. Business Overview & Revenue Model
Company Description
Himalaya Shipping Ltd. provides dry bulk shipping services worldwide. The company serves major commodity trading, commodity and energy transition, and multi-modal transport companies. As of December 31, 2024, it owned and operated through a fleet ...
How the Company Makes Money
HSHP makes money primarily by earning freight revenue from operating its dry bulk vessels. The company’s core revenue stream is time-charter income, where customers pay a contracted daily hire rate for the use of a vessel over a specified period; ...
Himalaya Shipping Ltd. Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call presents a clear operational and financial improvement with a quarter-to-quarter turnaround to profitability, strong revenue and EBITDA growth, materially higher TCEs, successful premium charters, solid cash generation and continued dividends. These positives are supported by constructive market fundamentals (ton-mile growth, bauxite and iron ore flows) and constrained supply dynamics. Offsetting risks include rising vessel operating costs, significant sale-leaseback leverage, concentrated commodity exposure, and elevated spot-market exposure that can increase volatility. Overall, highlights materially outweigh the lowlights.Positive Updates
Financial Turnaround to Profitability
Net profit of $5.0 million in Q1 2026 versus a net loss of $6.4 million in Q1 2025, delivering EPS of $0.11 compared to a loss per share of $0.14 a year earlier — a clear quarter-to-quarter turnaround.
Negative Updates
Higher Vessel Operating Expenses
Vessel operating expenses rose to $7.4 million in Q1 2026 from $6.9 million in Q1 2025 (increase of ~7.2%), with average OpEx per day up to $6,800 from $6,400 (~6.25% increase), driven by higher crew, spares, service fees and insurance costs.
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Q1-2026 Updates
Positive
Negative
Financial Turnaround to Profitability
Net profit of $5.0 million in Q1 2026 versus a net loss of $6.4 million in Q1 2025, delivering EPS of $0.11 compared to a loss per share of $0.14 a year earlier — a clear quarter-to-quarter turnaround.
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Company Guidance
Management's guidance emphasized a constructive market outlook and a clear capital-allocation approach: the company's all‑in cash breakeven is about $17,300/day (Baltic Capesize Index), 11 of 12 ships are currently exposed to the spot market (while most fleet is typically on long‑term index‑linked charters with conversion options), and management illustrated dividend capacity with implied yields of ~18% at a BCI of $40,000/day, ~28% at $50,000/day and ~35% at $60,000/day on the current share price; recent realized metrics cited were Q1 TCE $32,300/day and April TCE ~$41,600/day, 28 consecutive monthly dividends (Q1 cash distributions $0.18 per share; April distribution $0.15), and liquidity/financing metrics including cash of $24.5M and a minimum cash requirement of $12.3M under the sale‑leaseback facility.Himalaya Shipping Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
42
Neutral
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 143.50M | 131.90M | 123.58M | 36.74M | 0.00 | 0.00 |
| Gross Profit | 98.40M | 102.30M | 98.13M | 18.47M | 0.00 | 0.00 |
| EBITDA | 109.15M | 99.81M | 94.17M | 24.23M | -1.95M | 0.00 |
| Net Income | 29.10M | 17.70M | 21.04M | 1.51M | -1.95M | -973.85K |
Balance Sheet | ||||||
| Total Assets | 849.60M | 863.90M | 880.10M | 599.21M | 177.81M | 95.20M |
| Cash, Cash Equivalents and Short-Term Investments | 24.50M | 32.40M | 19.37M | 25.55M | 263.00K | 11.30M |
| Total Debt | 683.20M | 689.20M | 713.89M | 439.50M | 67.44M | 0.00 |
| Total Liabilities | 693.80M | 702.20M | 725.38M | 445.00M | 87.49M | 3.30M |
| Stockholders Equity | 155.80M | 161.70M | 154.72M | 154.21M | 90.33M | 91.90M |
Cash Flow | ||||||
| Free Cash Flow | 61.20M | 51.70M | -257.21M | -406.58M | -79.64M | -67.49M |
| Operating Cash Flow | 61.20M | 51.70M | 55.84M | 6.47M | -1.45M | -486.93K |
| Investing Cash Flow | 0.00 | 0.00 | -313.36M | -413.06M | -78.20M | -67.00M |
| Financing Cash Flow | -63.70M | -38.70M | 251.34M | 431.87M | 68.62M | 78.49M |
Himalaya Shipping Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.