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Himalaya Shipping Ltd.
(NYSE:HSHP)
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Rating:70Outperform
Price Target:
$20.00
▲(25.79% Upside)
Action:Upgraded
Date:08/19/26
The score is driven by strong recent operating performance and improving cash generation, reinforced by a positive earnings outlook and supportive chartering/TCE metrics. The biggest offset is elevated balance-sheet leverage (high debt/sale-leaseback exposure), which increases downside sensitivity in a cyclical shipping market; technicals and valuation are supportive but not enough to overcome the capital-structure risk.
Positive Factors
Strong profitability and cash generation
HSHP is converting strong operating performance into substantial cash, with revenue growth, high margins, and $87.1M of both operating and free cash flow in the TTM period. This supports fleet investment, debt service, and shareholder distributions while strengthening internal funding capacity.
Negative Factors
High leverage and sale-leaseback obligations
The capital structure leaves HSHP with a relatively small equity cushion against substantial debt and leaseback obligations. High leverage amplifies sensitivity to weaker freight rates, asset values, and refinancing conditions, potentially limiting financial flexibility during a shipping downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
HSHP is converting strong operating performance into substantial cash, with revenue growth, high margins, and $87.1M of both operating and free cash flow in the TTM period. This supports fleet investment, debt service, and shareholder distributions while strengthening internal funding capacity.
Read all positive factors
Himalaya Shipping Ltd. (HSHP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$865.11M
Dividend Yield8.01%
Average Volume (3M)325.53K
Price to Earnings (P/E)16.2
Beta (1Y)0.97
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. Volume311,658
30 Day Avg. Volume325,528
Financial Highlights & Ratios
PEG Ratio-1.15
Price to Book (P/B)2.59
Price to Sales (P/S)3.17
P/FCF Ratio8.10
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 Target
$18.80Price Target Upside18.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.93
Revenue Forecast (FY)$203.64M
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
82
Very Positive
Balance Sheet
46
Neutral
Cash Flow
61
Positive
| 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
15.90
Price Trends
15.37
Positive
14.64
Positive
12.48
Positive
Market Momentum
0.68
Negative
71.58
Negative
93.02
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 15.9 is below the 20-day moving average (MA) of 16.31, above the 50-day MA of 15.37, and above the 200-day MA of 12.48, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 71.58 is Negative, neither overbought nor oversold. The STOCH value of 93.02 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $409.96M | 6.62 | 20.72% | 4.75% | 31.98% | 274.58% | |
71 Outperform | $3.62B | 12.66 | 11.71% | 5.80% | 6.34% | 141.62% | |
70 Outperform | $865.11M | 16.24 | ― | 8.01% | 38.64% | 671.12% | |
68 Neutral | $933.81M | 11.82 | 10.32% | 2.56% | 10.81% | 81.30% | |
66 Neutral | $1.21B | 30.20 | 0.02% | 6.51% | 25.64% | 156.91% | |
64 Neutral | $374.49M | 6.18 | 11.56% | 1.33% | -3.68% | 258.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HSHP
Himalaya Shipping Ltd.
18.35
11.08
152.41%
DSX
Diana Shipping
3.01
1.25
71.12%
GNK
Genco Shipping
27.65
10.92
65.28%
SB
Safe Bulkers
9.17
4.87
113.31%
SHIP
Seanergy Maritime
18.92
11.16
143.81%
SBLK
Star Bulk Carriers
32.42
14.29
78.80%
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.