Castor Maritime (CTRM) AI Stock Analysis

• Market Cap: $20.58M
• Dividend Yield: N/A
• Average Volume (3M): 65.94K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.25
• Revenue Growth: -32.07%
• EPS Growth: -9.50%
• Country: US
• Employees: 1
• Sector: Industrials
• Sector Strength: 88
• Industry: Marine Shipping
• EPS (TTM): N/A
• Shares Outstanding: 9,662,354
• 10 Day Avg. Volume: 92,875
• 30 Day Avg. Volume: 65,941
• PEG Ratio: -0.03
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.69
• Enterprise Value/Market Cap: 2.15
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.67
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $2.50 ▲(17.37%Upside)

Castor Maritime's overall stock score is driven by its strong balance sheet and undervalued valuation, indicating potential for long-term stability and growth. However, declining revenue, profit margins, and technical weakness present significant challenges that need addressing to improve the stock's outlook.

Castor Maritime Business Overview & Revenue Model

Company Description

Castor Maritime Inc. provides shipping services worldwide. The company operates through three segments: Dry Bulk, Aframax/LR2 Tanker, and Handysize Tanker. It offers seaborne transportation services for dry bulk cargo; commodities, such as iron ore, coal, soybeans, etc.; and crude oil and refined petroleum products. As of December 31, 2021, the company owned and operated a fleet of 29 vessels primarily consisting of two Handysize tanker vessels, seven Aframax/LR2 tanker vessels, and 14 dry bulk vessels. Castor Maritime Inc. was incorporated in 2017 and is based in Limassol, Cyprus.

How the Company Makes Money

Castor Maritime makes money primarily through the chartering of its dry bulk vessels to customers in need of maritime transportation services. The company operates on a time charter and voyage charter basis, where it leases its vessels for specific durations or voyages in exchange for a fixed fee or freight rate. Revenue is generated from these charter agreements, which are influenced by factors such as market demand for dry bulk commodities, shipping rates, and global economic conditions. Additionally, Castor Maritime may engage in strategic partnerships or acquisitions to expand its fleet and enhance its service offerings, further contributing to its revenue growth.

Castor Maritime Financial Statement Overview

Summary

Castor Maritime's financial performance shows a mixed scenario with a strong balance sheet featuring low leverage and high equity, providing stability. However, revenue and net profit margins are declining, and cash flow challenges are evident, indicating potential operational difficulties needing attention.

Income Statement

Castor Maritime's income statement reflects a significant revenue decrease over recent years, with a revenue growth rate of -32.1% from 2023 to 2024. The gross profit margin stands at 29.66% for 2024, indicating reasonable cost management. However, the net profit margin decreased to 22.07% in 2024 from 39.63% in 2023, reflecting declining profitability. While EBIT and EBITDA margins remain robust at 32.34% and 52.11% respectively, the overall trajectory suggests potential challenges in maintaining revenue levels.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.20 in 2024, indicating low leverage. The company maintains a solid equity ratio of 71.52%, highlighting financial stability. Return on equity has decreased to 2.57% in 2024, reflecting lower profitability, though the company still benefits from substantial equity backing. This stability provides a buffer against industry fluctuations.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow from 2023 to 2024, with a growth rate of -172%. The operating cash flow to net income ratio is 2.87, indicating that operational cash generation remains strong relative to net income. However, the free cash flow to net income ratio is negative, suggesting challenges in capital expenditure management. These metrics reflect short-term cash flow concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.44M	66.24M	97.52M	262.10M	132.05M	12.49M
Gross Profit	26.50M	19.65M	28.47M	140.26M	65.53M	2.55M
EBITDA	93.72M	34.53M	55.71M	90.06M	69.99M	2.36M
Net Income	73.04M	14.62M	38.64M	118.56M	40.50M	-1.75M
Balance Sheet
Total Assets	563.21M	797.38M	605.04M	632.92M	462.91M	74.37M
Cash, Cash Equivalents and Short-Term Investments	233.44M	157.02M	188.47M	142.37M	37.17M	8.93M
Total Debt	1.62M	111.32M	83.39M	151.84M	102.04M	18.19M
Total Liabilities	7.42M	171.91M	94.31M	171.43M	119.98M	21.99M
Stockholders Equity	555.79M	570.13M	461.18M	461.50M	342.93M	52.38M
Cash Flow
Free Cash Flow	11.89M	-30.26M	41.97M	47.35M	-287.87M	-37.82M
Operating Cash Flow	42.57M	41.91M	42.59M	123.75M	60.78M	-2.34M
Investing Cash Flow	139.00M	-133.48M	-9.12M	-63.74M	-348.64M	-35.47M
Financing Cash Flow	-105.04M	59.56M	-64.88M	48.90M	321.82M	42.18M

Castor Maritime Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRM, the sentiment is Negative. The current price of 2.13 is below the 20-day moving average (MA) of 2.28, below the 50-day MA of 2.25, and below the 200-day MA of 2.92, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.29 is Neutral, neither overbought nor oversold. The STOCH value of 13.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTRM.

Castor Maritime Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSHG	71 Outperform	$21.13M	1.11	22.49%	―	-15.10%	-9.38%
Sector *	65 Neutral	$10.65B	15.49	5.57%	1.97%	2.71%	-26.32%
CTRM	61 Neutral	$20.58M	2.36	3.07%	―	-32.07%	-9.50%
TOPS	59 Neutral	$24.69M	4.90	3.07%	―	3.83%	―
USEA	48 Neutral	$13.71M	―	-10.92%	2.72%	-2.85%	-280.26%
GLBS	47 Neutral	$23.98M	61.24	-0.43%	―	17.92%	-131.47%
EDRY	45 Neutral	$27.33M	―	-11.54%	―	10.25%	-269.52%