Top Ships (TOPS) AI Stock Analysis

• Market Cap: $25.35M
• Dividend Yield: N/A
• Average Volume (3M): 7.51K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 1.07
• Revenue Growth: 3.83%
• EPS Growth: N/A
• Country: US
• Employees: 1
• Sector: Energy
• Sector Strength: 52
• Industry: Marine Shipping
• EPS (TTM): N/A
• Shares Outstanding: 4,626,197
• 10 Day Avg. Volume: 6,391
• 30 Day Avg. Volume: 7,514
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 11.24
• Enterprise Value/Revenue: 2.75
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 4.41
• 1Y Price Target: $6.00
• Price Target Upside: 5.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $6.00 ▲(5.45% Upside)

Top Ships' overall stock score is driven by its undervaluation, as indicated by a low P/E ratio, which suggests potential upside. However, financial performance is moderate due to high leverage and declining net profit margins, posing risks. Technical analysis reflects neutral to bearish momentum, indicating potential short-term weakness. The absence of earnings call data and corporate events limits additional insights.

Top Ships Business Overview & Revenue Model

Company Description

Top Ships Inc. owns and operates tanker vessels worldwide. The company's medium range tanker vessels transport crude oil, petroleum products, and bulk liquid chemicals. As of December 31, 2020, it had a fleet with a total capacity of 1,435,000 deadweight tonnes (dwt) consisting of one 50,000 dwt product/chemical tanker, five 157,000 dwt Suezmax tankers, two 300,000 dwt very large crude carriers, and two 50,000 dwt product tankers. The company was formerly known as Top Tankers Inc. and changed its name to Top Ships Inc. in December 2007. Top Ships Inc. was incorporated in 2000 and is based in Maroussi, Greece.

How the Company Makes Money

Top Ships generates revenue primarily through the chartering of its vessels, which involves leasing its ships to third-party clients for the transportation of crude oil and refined petroleum products. The company earns income from time charters, where clients pay a daily rate for the use of the vessels, and spot charters, which are typically for single voyages at market rates. Additionally, Top Ships may engage in long-term contracts with oil companies and traders, providing a more stable revenue stream. The company's financial performance is also supported by strategic partnerships and collaborations within the shipping industry, as well as its focus on fleet modernization to enhance operational efficiency and reduce costs.

Top Ships Financial Statement Overview

Summary

Top Ships exhibits moderate financial health with stable revenue growth and solid operational profitability. However, high leverage and declining net profit margins are concerning, and cash flow generation is weakening, indicating potential financial management challenges.

Income Statement

Top Ships has shown moderate revenue growth with a 3.83% increase from 2023 to 2024. The gross profit margin for 2024 is 43.74%, indicating efficiency in controlling costs relative to revenue. However, the net profit margin decreased to 5.85%, highlighting a contraction in profitability. The EBIT and EBITDA margins stand at 32.40% and 58.10% respectively, reflecting solid operational profitability but with declining trends compared to previous years.

Balance Sheet

The debt-to-equity ratio is high at 1.74, indicating significant leverage which could pose risks in volatile market conditions. The return on equity for 2024 is relatively low at 3.49%, suggesting limited returns for shareholders. The equity ratio is 34.16%, showing moderate reliance on equity financing, but the financial stability could be compromised by high debt levels.

Cash Flow

Operating cash flow has decreased significantly from 2023 to 2024, with a decline in free cash flow as well. The operating cash flow to net income ratio is 3.44, indicating strong cash generation relative to net income but declining cash flows present concerns. The free cash flow to net income ratio remains consistent, underscoring controlled capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.13M	82.95M	80.66M	56.37M	60.22M
Gross Profit	37.68M	48.46M	36.25M	20.50M	24.87M
EBITDA	50.05M	43.08M	45.83M	23.64M	28.57M
Net Income	5.03M	6.07M	18.95M	8.62M	-22.82M
Balance Sheet
Total Assets	422.77M	459.19M	469.34M	330.79M	293.03M
Cash, Cash Equivalents and Short-Term Investments	7.63M	35.96M	20.54M	2.37M	19.33M
Total Debt	251.41M	248.42M	260.93M	184.33M	147.71M
Total Liabilities	278.35M	275.81M	272.31M	237.57M	158.81M
Stockholders Equity	144.42M	183.38M	197.02M	93.22M	134.22M
Cash Flow
Free Cash Flow	17.32M	28.93M	-183.29M	-99.45M	-114.78M
Operating Cash Flow	17.32M	28.93M	33.42M	16.06M	6.04M
Investing Cash Flow	-12.40M	2.52M	-142.66M	-76.65M	181.29M
Financing Cash Flow	-33.25M	-16.04M	127.41M	43.63M	-177.28M

Top Ships Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOPS, the sentiment is Positive. The current price of 5.69 is above the 20-day moving average (MA) of 5.48, below the 50-day MA of 5.74, and above the 200-day MA of 5.67, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 70.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOPS.

Top Ships Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSHG	73 Outperform	25.49M	1.03	15.89%	―	-7.48%	3.08%
PXS	62 Neutral	30.41M	-83.33	13.78%	―	-10.94%	-100.28%
TOPS	60 Neutral	$25.35M	5.11	3.07%	―	3.83%	―
CTRM	54 Neutral	21.35M	-0.95	2.56%	―	-29.15%	-118.42%
EDRY	50 Neutral	35.28M	-2.40	-9.69%	―	-13.96%	-498.96%
GLBS	47 Neutral	24.08M	-4.08	0.24%	―	11.80%	-186.40%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Top Ships Corporate Events

Top Ships Secures $207 Million in Refinancing Deals

In August 2025, Top Ships Inc. entered into four sale and leaseback financing agreements with a major Chinese financier to refinance two VLCC tankers, a Suezmax tanker, and an MR product tanker. These agreements, expected to conclude by November 2025, will generate $207 million in proceeds, with $179.8 million allocated to repay existing financing and the remainder earmarked for general working capital and potential asset acquisitions. The move aligns with the company’s growth strategy, although no specific acquisitions have been identified yet.

Top Ships Secures $207 Million Financing for Tanker Fleet

Top Ships Inc. announced on August 19, 2025, that it has entered into four sale and leaseback financing agreements with a major Chinese financier to refinance two VLCC tankers, one Suezmax tanker, and one MR product tanker. The agreements, expected to conclude between October and November 2025, will generate $207 million, with $179.8 million allocated to repay existing financing facilities and the remainder for general working capital. The VLCC/Suez Financing Agreements span ten years, while the MR Financing Agreement lasts seven years, both allowing buyback options after the first year. These agreements include covenants and cross-default provisions linked to Rubico Inc.’s similar agreements, reflecting a strategic move to enhance financial stability and operational flexibility.

Top Ships Inc. Appoints New Independent Director

Top Ships Inc. announced the appointment of Ms. Maria Zoupou as an independent director, following the resignation of Capt. Stavros Emmanuel. Ms. Zoupou, with over 26 years of experience in finance and banking, will also serve on the Audit, Compensation, and Nominating and Governance Committees, potentially enhancing the company’s governance and strategic direction.

TOP Ships Announces Spin-Off of Rubico Inc. Shares

TOP Ships Inc. announced on July 31, 2025, that the distribution date for the common shares of Rubico Inc. is set for August 1, 2025. Rubico’s shares are expected to begin trading independently on the Nasdaq Capital Market under the ticker ‘RUBI’ on August 4, 2025. This spin-off involves two of TOP Ships’ vessels, the M/T Eco Malibu and M/T Eco West Coast, and aims to distribute 100% of Rubico’s common shares to TOP Ships’ security holders. This strategic move is expected to impact the company’s market positioning by focusing on its core operations while providing stakeholders with direct ownership in Rubico.

TOP Ships Announces Nasdaq Listing Approval for Rubico Spin-Off

On June 26, 2025, TOP Ships Inc. announced that Rubico Inc., a spin-off company, has received approval to list its common shares on the Nasdaq Capital Market. The spin-off involves two Suezmax tankers, M/T Eco Malibu and M/T Eco West Coast, and the distribution of Rubico shares to TOP Ships’ securityholders is expected in July 2025. This strategic move is anticipated to enhance TOP Ships’ market positioning by focusing on its core operations while providing stakeholders with new investment opportunities through Rubico.