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Costamare Inc. (CMRE)
NYSE:CMRE

Costamare (CMRE) AI Stock Analysis

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Costamare

(NYSE:CMRE)

Rating:75Outperform
Price Target:
$10.50
â–²(15.38%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)

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: 29.08%|
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
75
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
70
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
80
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.05B2.08B1.51B1.11B793.64M460.32M
Gross Profit
553.00M556.66M436.42M600.66M441.87M211.62M
EBIT
454.42M462.26M468.01M380.18M277.96M194.07M
EBITDA
537.30M619.87M730.09M853.31M649.28M177.82M
Net Income Common Stockholders
318.19M319.92M385.75M554.96M435.12M-71.75M
Balance SheetCash, Cash Equivalents and Short-Term Investments
818.80M741.28M790.40M838.06M276.00M143.92M
Total Assets
5.13B5.15B5.29B4.90B4.41B3.01B
Total Debt
2.28B2.35B2.65B2.58B2.56B1.59B
Net Debt
1.51B1.63B1.90B1.87B2.28B1.44B
Total Liabilities
2.48B2.58B2.85B2.74B2.68B1.66B
Stockholders Equity
2.59B2.51B2.38B2.16B1.73B1.35B
Cash FlowFree Cash Flow
306.66M257.23M49.04M519.70M-525.60M172.37M
Operating Cash Flow
542.80M537.72M331.37M581.59M466.49M274.28M
Investing Cash Flow
-112.57M-79.51M79.09M42.49M-787.46M-36.40M
Financing Cash Flow
-517.55M-505.48M-396.81M-166.05M482.59M-241.86M

Costamare Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.10
Price Trends
50DMA
7.62
Positive
100DMA
7.73
Positive
200DMA
8.83
Positive
Market Momentum
MACD
0.35
Positive
RSI
66.77
Neutral
STOCH
64.76
Neutral
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 9.1 is above the 20-day moving average (MA) of 8.66, above the 50-day MA of 7.62, and above the 200-day MA of 8.83, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 66.77 is Neutral, neither overbought nor oversold. The STOCH value of 64.76 is Neutral, 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
DADAC
78
Outperform
$1.58B3.5014.14%3.99%4.93%-17.08%
NMNMM
77
Outperform
$1.13B3.4911.19%0.52%0.28%-17.08%
GSGSL
76
Outperform
$898.68M2.3827.25%7.31%3.94%19.85%
76
Outperform
$1.94B8.3711.09%1.21%25.60%-9.32%
75
Outperform
$1.05B3.5912.57%5.17%17.77%-5.90%
SFSFL
66
Neutral
$1.28B21.185.09%12.30%6.68%-57.55%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CMRE
Costamare
9.10
-1.94
-17.57%
DAC
Danaos
85.70
-2.63
-2.98%
GSL
Global Ship Lease
25.77
-0.99
-3.70%
NMM
Navios Maritime Partners
38.69
-11.84
-23.43%
SFL
SFL Corporation
8.92
-3.66
-29.09%
SBLK
Star Bulk Carriers
16.86
-6.33
-27.30%
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.