MARINE sHIPPING

April 2, 2025

C3IS Inc.: "Fleet grows, profits flow."

Mark Pukhov

This reflects the company’s recent fleet expansion and profitability, though the situation isn’t entirely positive.

Being an international shipping company CISS has increased its vessels owned by an astonishing 33%:

BUSINESS overview

3

2023

2024

4

Besides, the company's current strengths and possible advantages include:

- low market cap and cheap valuations

- growing revenues and free cash flow

- quarterly dividend payments

- improving balance sheet

But at the same time, CISS also possesses weaknesses and possible disadvantages such as the following:

- negative net margin, ROE, and ROA

- declining retained earnings and no stock repurchases

- short financial history

A low market cap suggests high upside potential, while P/E and P/B ratios indicate an attractive buying opportunity.

STRENGTHS

P/B

0.03

AS OF APRIL 2, 2025

P/E:

0.06

Both revenue and free cash flow form an upward trend for 2023-2024 (in M).

23.35

2023

2024

2023

2024

1.34

42.30

28.74

REVENUE

FCF

As it was mentioned before, CISS also quarterly pays dividends, though only on preferred shares.

2023

2024

0.76

0.24

CISS's D/E and current ratios are improving toward expert standards, and its cash and CE are consistently increasing.

2023

2024

4.64

0.69

cash & ce (M)

D/E

0.72

2023

2024

0.41

CR

0.51

0.87

Since CISS's net income turned negative in 2024, related indicators like net margin, ROE, and ROA have also turned negative.

2023

2024

-6.5

32.33

net margin

ROE

16.73

weaknesses

2023

2024

-3.85

ROA

9.73

-2.73

The absence of stock repurchases negatively impacts our long-term returns, while decreased retained earnings limit CISS's flexibility.

2023

2024

0.26

8.34

RE (M)

Lastly, CISS's financial history is too short. Experts suggest evaluating 5-10 years of performance to understand a company's direction.

Actually, there are three more things to consider: insider and institutional ownership, intrinsic value, and stock price forecasts.

MORE things to consider

Insider ownership shows the team trusts CISS's future, while low institutional ownership suggests a lack of confidence from professional investors.

ownership (%)

INSTITUTIONS:

5.55

INSIDERS:

29.99

intrinsic value ($)

DCF valuation method, on the other hand, clearly shows that CISS's current stock price of $0.5 is far below its IV. 

ACC. TO VALUEINVESTING.IO

19.96

WORST  CASE:

BASE  CASE:

29.9

BEST CASE:

23.84

stock price prOJECtions ($)

2026:

0.78

2030:

1.27

ACC. TO COINCODEX.COM

Finally, price forecasts suggest growth, though far lower than CISS's current intrinsic value.

conclusion

To sum up, CISS looks like a severely underpriced stock with big upside potential and certain drawbacks.

Now that you know C3IS Inc.'s situation to some extent, it will be easier for you to make a decision.