As of May 24, 2025, Diamond S Shipping Inc has a Discounted Cash Flow (DCF) derived fair value of $2.94 per share. With the current market price at $9.69, this represents a potential upside of -69.6%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.53 |
| DCF Fair Value (10-year) | $2.94 |
| Potential Upside (5-year) | -94.5% |
| Potential Upside (10-year) | -69.6% |
| Discount Rate (WACC) | 5.5% - 14.2% |
Revenue is projected to grow from $596 million in 12-2020 to $331 million by 12-2030, representing a compound annual growth rate of approximately -5.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2020 | 596 | 3% |
| 12-2021 | 249 | -58% |
| 12-2022 | 254 | 2% |
| 12-2023 | 266 | 5% |
| 12-2024 | 271 | 2% |
| 12-2025 | 277 | 2% |
| 12-2026 | 282 | 2% |
| 12-2027 | 298 | 6% |
| 12-2028 | 307 | 3% |
| 12-2029 | 313 | 2% |
| 12-2030 | 331 | 6% |
Net profit margin is expected to improve from 4% in 12-2020 to 15% by 12-2030, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2020 | 26 | 4% |
| 12-2021 | 14 | 5% |
| 12-2022 | 19 | 8% |
| 12-2023 | 25 | 10% |
| 12-2024 | 31 | 11% |
| 12-2025 | 37 | 13% |
| 12-2026 | 38 | 14% |
| 12-2027 | 41 | 14% |
| 12-2028 | 44 | 14% |
| 12-2029 | 46 | 15% |
| 12-2030 | 49 | 15% |
with a 5-year average of $33 million. Projected CapEx is expected to maintain at approximately 10% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2021 | 12 |
| 12-2022 | 17 |
| 12-2023 | 21 |
| 12-2024 | 23 |
| 12-2025 | 26 |
| 12-2026 | 27 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 44 |
| Days Inventory | 27 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2021 | 34 | 4 | 19 | (12) | 24 |
| 2022 | 58 | 7 | 25 | (4) | 29 |
| 2023 | 71 | 9 | 27 | (2) | 37 |
| 2024 | 82 | 11 | 27 | 4 | 39 |
| 2025 | 92 | 14 | 28 | (1) | 52 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.53 | -94.5% |
| 10-Year DCF (Growth) | 2.94 | -69.6% |
| 5-Year DCF (EBITDA) | 3.52 | -63.7% |
| 10-Year DCF (EBITDA) | 5.05 | -47.9% |
Is Diamond S Shipping Inc (DSSI) a buy or a sell? Diamond S Shipping Inc is definitely a sell. Based on our DCF analysis, Diamond S Shipping Inc (DSSI) appears to be overvalued with upside potential of -69.6%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $9.69.