MeritValue

Himalaya Shipping Ltd.

HSHPdata completeness 88%4 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'pretaxIncome'

The thesis, from the filings

Himalaya Shipping Ltd. earns about 6% on equity, but has diluted owners by 43% over 4 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $2.16 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025
Revenue$01$36.7M2$123.6M2$131.9M2
Net income−$1.95M3$1.5M4$21.1M4$17.7M4
Operating cash flow−$1.45M5$6.4M6$55.9M6$51.7M6
Capital expenditure————
Free cash flow (derived)————
Total debt$134.9M7$879M8$1.43B9$1.38B9
Cash & equivalents$263,00010$25.6M11$19.4M12$32.4M12
Diluted shares32.2M38.6M43.9M46.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$35.14
your share of equity
Profit it earned you last year
$3.85
Free cash flow it threw off
—
Debt you’d be carrying
$299.55

10 shares is a claim on $35.14 of net worth that earned you $3.85 last year, against $299.55 of debt.

iii. Is this a good business?
Moat signal · return on equity
6% avg · 4y
FY22 -2%FY23 1%FY24 14%FY25 11%

It earned an average 6% on equity over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+43% shares · 4y

Share count is up 43% over 4 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 922% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$2.16
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$9.6M
  • growthAssumed0.0%
Graham Number
$5.48
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2022-12-31 · accession 0001959455-25-000027 (Revenues)
  2. 20-F · period ending 2023-12-31 · accession 0001959455-26-000024 (Revenues)
  3. 20-F · period ending 2022-12-31 · accession 0001959455-25-000027 (NetIncomeLoss)
  4. 20-F · period ending 2023-12-31 · accession 0001959455-26-000024 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001959455-25-000027 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2023-12-31 · accession 0001959455-26-000024 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2022-12-31 · accession 0001959455-24-000021 (LongTermDebtNoncurrent)
  8. 20-F · period ending 2023-12-31 · accession 0001959455-25-000027 (LongTermDebtNoncurrent)
  9. 20-F · period ending 2024-12-31 · accession 0001959455-26-000024 (LongTermDebtNoncurrent)
  10. 20-F · period ending 2022-12-31 · accession 0001959455-24-000021 (CashAndCashEquivalentsAtCarryingValue)
  11. 20-F · period ending 2023-12-31 · accession 0001959455-25-000027 (CashAndCashEquivalentsAtCarryingValue)
  12. 20-F · period ending 2024-12-31 · accession 0001959455-26-000024 (CashAndCashEquivalentsAtCarryingValue)