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Himalaya Shipping Ltd.
(NYSE:HSHP)
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Rating:65Neutral
Price Target:
$16.50
▲(6.66% Upside)
Action:Reiterated
Date:08/11/26
The score is driven by strong earnings-call momentum and solid current profitability/cash generation, supported by an attractive dividend yield. The main limiter is elevated balance-sheet leverage (high debt/sale-leaseback exposure) and cyclicality/volatility risk, while technical signals are broadly neutral-to-mildly supportive.
Positive Factors
Strong cash generation
TTM OCF and FCF near $61M with OCF ~1.78x net income indicate durable internal cash generation. This strengthens the firm's ability to fund dry‑dock and maintenance, support regular cash distributions, and service or reduce debt over a multi‑month horizon.
Negative Factors
High leverage and sale‑leaseback liability
Very high leverage and large sale‑leaseback obligations create persistent fixed financing commitments and refinancing sensitivity. This capital structure reduces balance‑sheet flexibility and magnifies downside risk if freight rates or secondhand values decline over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
TTM OCF and FCF near $61M with OCF ~1.78x net income indicate durable internal cash generation. This strengthens the firm's ability to fund dry‑dock and maintenance, support regular cash distributions, and service or reduce debt over a multi‑month horizon.
Read all positive factors
Himalaya Shipping Ltd. (HSHP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$759.51M
Dividend Yield7.9%
Average Volume (3M)172.96K
Price to Earnings (P/E)14.5
Beta (1Y)0.96
Revenue Growth38.64%
EPS Growth671.12%
CountryUS
Employees3
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)1.13
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.94
Revenue Forecast (FY)$203.70M
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:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operating and financial performance for Q2 2026 with large YoY improvements in net profit, revenues, EBITDA, TCE and cash generation. Management highlighted successful chartering at premiums, a modern low-emission fleet, supportive market fundamentals (rising ton-mile, record exports, low newbuilding orderbook) and clear dividend capacity. Key risks noted include elevated sale-leaseback liabilities, dry-dock off-hire risks and a flat secondhand asset market; management also remains selectively exposed in the forward curve and has deferred covering Q1 2027, leaving some near-term market risk. Overall, the positives — substantial earnings, cash flows, chartering wins and favorable market structure — materially outweigh the lowlights.Positive Updates
Strong Profitability and Earnings Growth
Net profit of $24.6 million in Q2 2026 versus $1.1 million in Q2 2025, an increase of ~2,136%. Earnings per share rose to $0.52 from $0.02. Operating profit increased to $36.7 million from $13.6 million and EBITDA rose to $44 million from $20.9 million, a ~110.5% increase in EBITDA.
Negative Updates
Higher G&A from Consolidation
General & administrative expenses increased to $1.9 million in Q2 2026 from $1.5 million in Q2 2025, a ~26.7% increase, driven by consolidation of Peak Maritime Management AS (formerly 2020 Bulkers Management AS).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profitability and Earnings Growth
Net profit of $24.6 million in Q2 2026 versus $1.1 million in Q2 2025, an increase of ~2,136%. Earnings per share rose to $0.52 from $0.02. Operating profit increased to $36.7 million from $13.6 million and EBITDA rose to $44 million from $20.9 million, a ~110.5% increase in EBITDA.
Read all positive updates
Company Guidance
Himalaya guided for a continued strong second half of 2026 while largely staying exposed to the upside (10 of 12 vessels spot-exposed) and converting selectively to fixed when the forward curve offers value; management said it is not yet covering Q1 2027 given the 2027 curve around $29,500/day versus Q1 at ~$25,500/day. Key operating metrics underpinning that view include an all-in cash breakeven equivalent to the Baltic Capesize Index of ~$17,500/day, Q2 time charter equivalent (TCE) of ~$50,600/day (July TCE ~ $51,200/day), conversions of four vessels in June at an average $56,500/day and two vessels (Aug–Dec) at an average $51,200/day, new index‑linked charters (Mount Emai 12–14 months and Mount Aconcagua 16–18 months) at significant premiums to the index, and declared cash distributions of $0.59 for Apr–Jun plus a $0.22 July distribution. Financial and market context cited to support guidance included Q2 net profit $24.6M and EBITDA $44M, dividend/yield sensitivity (~18% yield at BCI ~$40k/day; ~34% at $60k/day; ~65% at $100k/day), fleet of 12 modern Newcastlemaxes (top 1% emissions), historical fleet outperformance (avg 48% premium to BCI and 25% to peers), demand drivers (ton‑mile +4.9% y/y; bauxite +7.7% y/y; iron ore +2% y/y; coal ton‑mile +15% y/y), Simandou ramp (target 120 Mtpa; 15–20 Mt projected first‑year contribution), a Capesize order book ~16% of fleet, and supply pressures from dry docks (estimated 1.7% off‑hire in 2026; ~24% of fleet requiring dry dock this year, with only ~30% completed so far).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 | 167.30M | 131.90M | 123.58M | 36.74M | 0.00 | 0.00 |
| Gross Profit | 129.20M | 102.30M | 98.13M | 18.47M | 0.00 | 0.00 |
| EBITDA | 131.95M | 99.81M | 94.17M | 24.23M | -1.95M | 0.00 |
| Net Income | 52.60M | 17.70M | 21.04M | 1.51M | -1.95M | -973.85K |
Balance Sheet | ||||||
| Total Assets | 853.80M | 863.90M | 880.10M | 599.21M | 177.81M | 95.20M |
| Cash, Cash Equivalents and Short-Term Investments | 34.80M | 32.40M | 19.37M | 25.55M | 263.00K | 11.30M |
| Total Debt | 677.50M | 689.20M | 713.89M | 439.50M | 67.44M | 0.00 |
| Total Liabilities | 690.60M | 702.20M | 725.38M | 445.00M | 87.49M | 3.30M |
| Stockholders Equity | 162.80M | 161.70M | 154.72M | 154.21M | 90.33M | 91.90M |
Cash Flow | ||||||
| Free Cash Flow | 87.10M | 51.70M | -257.21M | -406.58M | -79.64M | -69.30M |
| Operating Cash Flow | 87.10M | 51.70M | 55.84M | 6.47M | -1.45M | -500.00K |
| Investing Cash Flow | 0.00 | 0.00 | -313.36M | -413.06M | -78.20M | -68.80M |
| Financing Cash Flow | -77.00M | -38.70M | 251.34M | 431.87M | 68.62M | 80.60M |
Himalaya Shipping Ltd. Technical Analysis
Positive
15.47
Price Trends
14.79
Positive
14.27
Positive
11.97
Positive
Market Momentum
0.28
Negative
59.67
Neutral
85.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSHP, the sentiment is Positive. The current price of 15.47 is below the 20-day moving average (MA) of 15.60, above the 50-day MA of 14.79, and above the 200-day MA of 11.97, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 59.67 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSHP.
Himalaya Shipping Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $308.55M | 5.43 | 11.56% | 1.78% | -3.68% | 258.59% | |
73 Outperform | $363.38M | 5.98 | 20.72% | 3.58% | 31.98% | 274.58% | |
71 Outperform | $3.31B | 11.75 | 11.71% | 3.66% | 6.34% | 141.62% | |
68 Neutral | $789.21M | 10.44 | 10.32% | 2.79% | 10.81% | 81.30% | |
66 Neutral | $1.15B | 28.63 | 0.02% | 4.30% | 25.64% | 156.91% | |
65 Neutral | $759.51M | 14.46 | ― | 8.34% | 38.64% | 671.12% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HSHP
Himalaya Shipping Ltd.
16.34
9.92
154.40%
DSX
Diana Shipping
2.66
1.14
75.12%
GNK
Genco Shipping
26.22
11.62
79.61%
SB
Safe Bulkers
8.10
4.11
103.01%
SHIP
Seanergy Maritime
17.10
10.11
144.64%
SBLK
Star Bulk Carriers
30.09
12.48
70.89%
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.