Costamare (CMRE) AI Stock Analysis

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Costamare

(NYSE:CMRE)

Rating:75Outperform

Price Target:

$10.50

▲(13.39%Upside)

Costamare's stock is appealing due to its strong financial performance and attractive valuation. The bullish technical trend supports the positive outlook, although caution is advised due to potential overbought conditions. The stock's low valuation and high dividend yield further enhance its attractiveness.

Costamare (CMRE) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.10B

Dividend Yield4.97%

Average Volume (3M)517.11K

Price to Earnings (P/E)3.8

Beta (1Y)0.91

Revenue Growth17.77%

EPS Growth-5.90%

CountryUS

Employees2,430

SectorIndustrials

Sector Strength87

IndustryMarine Shipping

Share Statistics

EPS (TTM)0.61

Shares Outstanding119,961,490

10 Day Avg. Volume529,673

30 Day Avg. Volume517,113

Financial Highlights & Ratios

PEG Ratio0.07

Price to Book (P/B)0.53

Price to Sales (P/S)0.00

P/FCF Ratio2.20

Enterprise Value/Market Cap2.73

Enterprise Value/Revenue0.37

Enterprise Value/Gross Profit5.44

Enterprise Value/Ebitda1.31

Forecast

1Y Price Target

$12.00

Price Target Upside29.59% Upside

Rating ConsensusHold

Number of Analyst Covering1

Costamare Business Overview & Revenue Model

Company DescriptionCostamare Inc. owns and charters containerships to liner companies worldwide. As of March 18, 2022, it had a fleet of 76 containerships with a total capacity of approximately 557,400 twenty-foot equivalent units and 45 dry bulk vessels with a total capacity of approximately 2,435,500 DWT. The company was founded in 1974 and is based in Monaco.

How the Company Makes MoneyCostamare generates revenue primarily through long-term fixed-rate charters of its containerships to major liner companies. These charters provide predictable and stable cash flows, as they are typically structured to cover operating expenses and provide a return on investment over the contract duration. Additionally, Costamare participates in the spot market, where they charter vessels on short-term contracts, allowing for higher earnings potential during periods of strong demand. The company also benefits from strategic partnerships and joint ventures, which can enhance fleet utilization and expand their market presence. Overall, Costamare’s revenue model is built on optimizing fleet deployment and maintaining high vessel utilization rates to maximize earnings.

Costamare Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q4-2024)

% Change Since: 31.35%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive outlook with strong financial results, high liquidity, and strategic fleet management despite challenges in the dry bulk market and potential shifts in market dynamics.

Q4-2024 Updates

Positive Updates

Strong Financial Performance

Adjusted net income for the fourth quarter of 2024 was approximately $82 million, contributing to an annual adjusted net income of around $330 million or $2.76 per share.

High Liquidity Levels

The company maintains strong liquidity with over $940 million available, providing opportunities for future growth and investments.

Successful Chartering and Contracting

Chartered 12 containerships with estimated contracted revenues close to $330 million and total contracted revenues amounting to $2.4 billion with a TEU-weighted remaining duration of 3.4 years.

Strategic Fleet Management

Acquired 1 Capesize and 2 Ultramax vessels, while disposing of 1 Handysize ship and agreeing to sell 1 Panamax vessel, aligning with the strategy to renew and increase the average size of the owned fleet.

Growth in Neptune Maritime Leasing

Neptune Maritime Leasing continues to grow with total investments and commitments exceeding $500 million.

Negative Updates

Dry Bulk Market Weakness

Charter rates in the dry bulk market dropped to their lowest levels of 2024 during the last quarter, with continued softness into 2025 due to oversupply and pressures in the China steel market.

Potential Market Dynamics Shift

The return to the Suez Canal route and new building capacity could affect the containership market dynamics, posing a risk to current favorable conditions.

Company Guidance

During the fourth quarter of 2024, Costamare Inc. reported an adjusted net income of approximately $82 million, with liquidity standing at around $940 million. The company has chartered 12 containerships on a forward basis, securing estimated contracted revenues close to $330 million. Their containership fleet is employed at 96% for 2025 and 69% for 2026, contributing to total contracted revenues of $2.4 billion with a remaining time charter duration of about 3.4 years. In the dry bulk market, Costamare acquired a Capesize and two Ultramax vessels, while selling one Handysize ship and agreeing to sell one Panamax vessel. The dry bulk charter rates have reached their lowest levels in 2024 and remain soft into 2025. Neptune Maritime Leasing has a pipeline exceeding $500 million in investments and commitments, while Costamare's overall net income for the year reached around $330 million, or $2.76 per share.

Costamare Financial Statement Overview

Summary

Costamare demonstrates solid financial performance with strong profitability and cash generation capabilities. Despite decelerating revenue growth, leverage is manageable, and cash flow generation remains a positive indicator for future operations. However, the decreasing trend in equity is a concern.

Income Statement

Positive

Costamare's income statement shows a stable revenue base with moderate growth. The company achieved a Gross Profit Margin of 27% and a Net Profit Margin of 15.5% in TTM, indicating strong profitability. However, revenue growth has slowed recently, and the EBIT and EBITDA margins have slightly decreased compared to previous years.

Balance Sheet

Positive

The balance sheet reflects a solid equity position with a Debt-to-Equity Ratio of 0.88 in TTM, indicating manageable leverage. The Equity Ratio of 50.5% suggests a strong capital structure. However, the decreasing trend in stockholders' equity over time may pose a risk to future financial stability.

Cash Flow

Positive

Costamare's cash flow statement is robust, with a strong Operating Cash Flow to Net Income Ratio of 1.71 in TTM. Free Cash Flow has grown significantly, showcasing efficient capital management. The Free Cash Flow to Net Income Ratio of 0.96 reflects the company's ability to generate cash efficiently relative to its earnings.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.05B	2.08B	1.51B	1.11B	793.64M	460.32M
	Gross Profit
553.00M	556.66M	436.42M	600.66M	441.87M	211.62M
	EBIT
454.42M	462.26M	468.01M	380.18M	277.96M	194.07M
	EBITDA
537.30M	619.87M	730.09M	853.31M	649.28M	177.82M
	Net Income Common Stockholders
318.19M	319.92M	385.75M	554.96M	435.12M	-71.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
818.80M	741.28M	790.40M	838.06M	276.00M	143.92M
	Total Assets
5.13B	5.15B	5.29B	4.90B	4.41B	3.01B
	Total Debt
2.28B	2.35B	2.65B	2.58B	2.56B	1.59B
	Net Debt
1.51B	1.63B	1.90B	1.87B	2.28B	1.44B
	Total Liabilities
2.48B	2.58B	2.85B	2.74B	2.68B	1.66B
	Stockholders Equity
2.59B	2.51B	2.38B	2.16B	1.73B	1.35B
Cash Flow		Free Cash Flow
306.66M	257.23M	49.04M	519.70M	-525.60M	172.37M
	Operating Cash Flow
542.80M	537.72M	331.37M	581.59M	466.49M	274.28M
	Investing Cash Flow
-112.57M	-79.51M	79.09M	42.49M	-787.46M	-36.40M
	Financing Cash Flow
-517.55M	-505.48M	-396.81M	-166.05M	482.59M	-241.86M

Costamare Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.26

Price Trends

50DMA

7.69

Positive

100DMA

7.73

Positive

200DMA

8.82

Positive

Market Momentum

MACD

0.37

Negative

RSI

69.14

Neutral

STOCH

91.45

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMRE, the sentiment is Positive. The current price of 9.26 is above the 20-day moving average (MA) of 8.71, above the 50-day MA of 7.69, and above the 200-day MA of 8.82, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 69.14 is Neutral, neither overbought nor oversold. The STOCH value of 91.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMRE.

Costamare Risk Analysis

Costamare disclosed 72 risk factors in its most recent earnings report. Costamare reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Costamare Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAC	78 Outperform	$1.61B	3.66	14.14%	3.92%	4.93%	-17.08%
NMM	76 Outperform	$1.15B	3.77	11.19%	0.51%	0.28%	-17.08%
GSL	76 Outperform	$930.37M	2.50	27.25%	8.04%	3.94%	19.85%
SBLK	76 Outperform	$1.99B	8.80	11.09%	1.18%	25.60%	-9.32%
CMRE	75 Outperform	$1.10B	3.80	12.57%	4.97%	17.77%	-5.90%
SFL	66 Neutral	$1.25B	20.72	5.09%	12.59%	6.68%	-57.55%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%

* Industrials Sector Average

Performance Comparison

CMRE

Costamare

9.26

-1.57

-14.50%

DAC

Danaos

89.19

2.56

2.96%

GSL

Global Ship Lease

26.46

0.38

1.46%

NMM

Navios Maritime Partners

41.39

-6.07

-12.79%

SFL

SFL Corporation

8.59

-3.15

-26.83%

SBLK

Star Bulk Carriers

17.40

-4.62

-20.98%

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.