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Okeanis Eco Tankers Corp. (ECO)
NYSE:ECO
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Okeanis Eco Tankers Corp.
(NYSE:ECO)
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Rating:71Outperform
Price Target:
$52.00
▼(-2.26% Downside)
Action:ReiteratedDate:02/20/26
ECO scores well on profitability and improving leverage, reinforced by a bullish earnings-call setup with strong near-term fixture coverage. The score is held back by cyclical/uneven cash flow and still-large absolute debt, plus technically overbought conditions and valuation that is only moderately attractive despite a solid dividend yield.
Positive Factors
Fleet quality & eco-design
A modern, young fleet with recent high-spec Suezmax additions provides durable competitive advantage: lower fuel consumption, regulatory compliance, fewer maintenance disruptions, and stronger charterer preference. These structural traits support higher utilization and long-term TCE resilience versus older tonnage.
High profitability and margins
Sustained high gross and net margins indicate robust pricing power and operational efficiency in core VLCC/Suezmax operations. Elevated margins enhance cash generation capacity over business cycles, providing buffer for capex, dividends, and debt service even if spot rates soften moderately.
Strong forward fixture coverage & utilization
High near-term fixture coverage combined with recent 100% Q4 utilization materially reduces short-term spot exposure and revenue volatility. Durable forward cover provides multi-month visibility into cash flows and supports operational planning, dividend commitments, and accretive contract placement strategies.
Negative Factors
Very high dividend payout ratio
Paying out essentially all reported earnings (and more) leaves limited retained earnings for capex, drydocks, or downturns. In a cyclical shipping market this elevates cash flow strain risk, increases reliance on external financing or equity raises, and reduces buffer against unexpected operational shocks.
Cyclical, uneven cash generation
Material swings in free cash flow reflect the market-cycle sensitivity of tanker revenues and capex timing. This uneven conversion undermines predictability of dividends and deleveraging, increasing the probability of financing or dividend cuts if freight weakens over the next 2–6 months.
Large absolute debt exposure
Despite improving ratios, a sizable $605M debt stock and meaningful leverage can amplify downside in a freight downturn via higher interest and refinancing needs. Large nominal debt limits flexibility for opportunistic investments and raises counterparty risk if receivables or utilization weaken.
Okeanis Eco Tankers Corp. (ECO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.11B
Dividend Yield6.5%
Average Volume (3M)134.78K
Price to Earnings (P/E)14.3
Beta (1Y)0.82
Revenue Growth-12.47%
EPS Growth-34.41%
CountryUS
Employees13
SectorEnergy
Sector Strength52
IndustryMarine Shipping
Share Statistics
EPS (TTM)1.78
Shares Outstanding39,740,547
10 Day Avg. Volume125,981
30 Day Avg. Volume134,785
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)1.93
Price to Sales (P/S)2.82
P/FCF Ratio15.52
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue5.62
Enterprise Value/Gross Profit11.38
Enterprise Value/Ebitda10.60
Forecast
1Y Price Target
$50.62Price Target Upside-4.84% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)6.86
Revenue Forecast (FY)$432.43M
Okeanis Eco Tankers Corp. Business Overview & Revenue Model
Company DescriptionOkeanis Eco Tankers Corp., a tanker company, engages in the ownership, chartering and operation of oil tanker vessels worldwide. The company also provides various shipping services, such as technical support, maintenance, and insurance consulting services. It operates a fleet of six modern scrubber-fitted Suezmax tankers and eight modern scrubber-fitted VLCC tankers. The company was incorporated in 2018 and is based in Piraeus, Greece.
How the Company Makes MoneyOkeanis Eco Tankers generates revenue primarily through the chartering of its fleet of eco-tankers. The company enters into time charters or spot charters with oil and gas companies, which pay for the transportation of their products over predetermined routes. The revenue model is influenced by market rates for shipping, fuel prices, and the overall demand for oil transportation. Additional revenue streams may include operational efficiencies derived from the eco-friendly design of their vessels, which can lead to lower fuel consumption and maintenance costs. Strategic partnerships with oil companies and other stakeholders in the energy sector also contribute to securing long-term contracts, enhancing revenue stability.
Okeanis Eco Tankers Corp. Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong operating and financial performance: high Q4 and full-year earnings, 100% Q4 utilization, accretive equity raises executed at premiums to NAV, substantial dividends and a modern young fleet. Management highlighted supportive market fundamentals (Venezuelan barrels returning, Synacor consolidation) and strong forward fixtures that underpin Q1 visibility. Key risks discussed were drydock-related earnings penalties, high dividend payout ratios (including a dividend equal to >100% of net income), NAV premium compression, trade receivables concentration and moderate leverage. On balance, positive operational and capital-markets execution and the weight of structural market tailwinds outweigh the noted operational and capital allocation risks.Q4-2025 Updates
Positive Updates
Strong Quarterly and Annual Financial Performance
Q4 adjusted EBITDA of $79.0M, adjusted net profit of $60.0M and adjusted EPS of $1.78. Full year TCE revenue $265.4M, EBITDA ~ $204M and reported net income ~ $130M ( $3.77/share ).
High Fleet Earnings and Utilization
Fleet-wide TCE in Q4 ~ $76,700/day (reported ~ $77,000/day). VLCCs averaged $92,000/day and Suezmaxes $53,100/day. Achieved 100% utilization across the fleet in Q4.
Accretive Equity Raises and Shareholder Returns
Two oversubscribed equity raises totalling $245M gross proceeds (Nov $115M at $35.5/sh ~1.25x NAV; Jan $130M at $36/sh ~1.2x NAV). Since those raises shareholders generated >20% return plus dividends. Since IPO the company has paid $461M in dividends (>2x initial market cap).
Consistent Dividend Policy and High Payouts
Declared 15th consecutive quarterly distribution of $1.55/share. This dividend represents 102% of net income on a fully diluted basis; total distributions over the last 4 quarters $3.32/share (~95% of reported net income for the period).
Fleet Quality, Growth and Modernization
Fleet of 16 vessels on the water (8 Suezmaxes, 8 VLCCs), average age ~6 years. Acquired 4 modern high-spec resale Suezmax newbuilds (2 delivered, 2 due in next 2–3 months) to further improve fleet quality.
Favorable Capital Structure Trends
Year-end cash $122.5M (including equity earmarked for recent acquisitions). Book debt $605M and subsequent $90M draw for 2 Suezmaxes. Book leverage 46%; market-adjusted net LTV ~35%. Financing margin improvement of ~140 basis points; recent financings at ~130 bps over SOFR for 7–8 year terms.
Strong Forward Fixture Coverage
As of call: 67% of VLCC spot days fixed at $104,200/day and 64% of Suezmax days fixed at $84,600/day, giving a fixed-portion fleet average of ~$94,800/day (roughly two-thirds of the quarter). Examples include a 12-month charter fixed at $91,140/day and multiple 12-month fixtures at ~$100,000/day.
Commercial Outperformance Track Record
Cumulative outperformance vs peers since Q4 2019 of ~$235M, representing ~22% outperformance on RVs and ~39% outperformance on Suezmaxes over ~5.5 years, attributed to consistent commercial execution.
Market Fundamentals Supporting Earnings
Positive structural drivers cited: return of Venezuelan barrels to compliant fleet, reduced Indian purchases of Russian crude, and large-scale industry consolidation (Synacor controlling ~150 VLCCs), all supporting tighter compliant tonnage and higher freight rates.
Negative Updates
Drydock-Related Penalties and Positioning Costs
Two 2020-built Suezmaxes underwent dry docking in China in Q4 which penalized earnings due to repositioning costs and weaker freight economics in eastern trades; company considering placing a 2026 dry dock in Turkey which is $0.25–$0.5M more expensive but reduces repositioning opportunity cost.
Dividend Payout Sustainability Question (Payout >100%)
Latest dividend ($1.55/share) represents 102% of net income on a fully diluted basis, and total distributions over the last 4 quarters represent ~95% of reported net income—high payout ratios that could raise sustainability questions if market softness emerges.
NAV Premium Compression and Market Volatility
Management noted NAV has been consistently rising but NAV premium has 'somewhat compressed' amid rapidly appreciating asset values and market volatility, which could impact per-share valuation dynamics in short term.
Concentration of Trade Receivables and Leverage
Year-end trade receivables approximately $85M and book leverage at 46% (market-adjusted net LTV ~35%). While manageable, these figures highlight exposure to counterparty and leverage risk if market conditions deteriorate.
Brief Post-Christmas Market Dip
Market dipped aggressively on VLCCs right after Christmas; company had limited exposure but noted the event, underscoring ongoing market volatility risk.
Company Guidance
Management guided to a strong Q1 driven by visible, accretive fixtures and a bullish market: as of the update they have 67% of VLCC spot days fixed at $104,200/day and 64% of Suezmax days fixed at $84,600/day, with the fixed portion (~2/3 of the quarter) averaging about $94,800/day; they also cited a 12‑month charter at $91,140 and multiple 12‑month fixtures near $100,000/day. For context they reported Q4 fleet‑wide TCE of ~$76.7k/day (VLCCs ~$92k, Suezmaxes ~$53k) with 100% utilization, and noted operational plans to reposition two newbuild Suezmaxes into the West in Q1. Management emphasized balance‑sheet strength behind the guidance—$122.5m cash, ~$605m debt (plus a subsequent $90m draw), book leverage ~46% and market‑adjusted net LTV ~35%—and reiterated their shareholder return focus with a declared $1.55/share quarterly dividend (15th consecutive) after Q4 adjusted EBITDA of $79m, adjusted net profit of $60m and adjusted EPS of $1.78.Okeanis Eco Tankers Corp. Financial Statement Overview
Summary
Strong profitability with very high margins (2025 gross margin ~57%, net margin ~31%) and improving leverage (debt-to-equity down to ~1.06 in 2025). Offsetting this, revenue and free cash flow are cyclical/uneven and absolute debt remains large (~$605M), which can amplify downside in weaker freight markets.Income Statement
Profitability is strong and resilient: in 2025 revenue was ~$392M with a high gross margin (~57%) and solid net margin (~31%), following similarly strong 2023–2024 margin performance. However, top-line growth has been inconsistent (flat in 2024, up ~12% in 2025, and down sharply in 2021), reflecting a more cyclical earnings profile.74
Positive
Balance Sheet
Leverage is meaningful but improving. Debt-to-equity declined from ~1.70 (2023) and ~1.57 (2024) to ~1.06 (2025), supported by a sizable equity base (~$573M) and assets of ~$1.20B. The main weakness is that debt remains large in absolute dollars (~$605M in 2025), which can amplify volatility in a downcycle.58
Neutral
Cash Flow
Cash generation is positive but uneven. Operating cash flow was positive across the period shown (about $111M in 2025), and operating cash flow covered net income in recent years (2025 ~1.6x; 2024 ~2.3x). Free cash flow was solid in 2023–2025, but it swung negative in 2020 and 2022 and declined sharply in 2025 (down ~35% year over year), indicating variability in cash conversion and/or capital spending needs.63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 391.55M | 393.23M | 413.10M | 270.97M | 169.00M |
| Gross Profit | 224.44M | 223.60M | 221.41M | 123.18M | 44.63M |
| EBITDA | 203.97M | 204.08M | 241.51M | 157.60M | 64.85M |
| Net Income | 122.95M | 108.86M | 145.25M | 84.56M | -902.90K |
Balance Sheet | |||||
| Total Assets | 1.20B | 1.08B | 1.13B | 1.18B | 954.59M |
| Cash, Cash Equivalents and Short-Term Investments | 116.64M | 49.34M | 49.99M | 81.35M | 38.18M |
| Total Debt | 605.10M | 646.18M | 693.28M | 739.04M | 577.00M |
| Total Liabilities | 627.55M | 671.67M | 720.98M | 761.11M | 596.30M |
| Stockholders Equity | 573.09M | 410.43M | 408.13M | 422.24M | 358.29M |
Cash Flow | |||||
| Free Cash Flow | 71.11M | 153.67M | 171.61M | -98.98M | 6.29M |
| Operating Cash Flow | 111.30M | 164.86M | 174.92M | 81.16M | 28.60M |
| Investing Cash Flow | -42.42M | -11.24M | -1.27M | -179.10M | 285.67M |
| Financing Cash Flow | -3.45M | -153.42M | -205.72M | 140.70M | -299.43M |
Okeanis Eco Tankers Corp. Technical Analysis
Positive
53.20
Price Trends
39.75
Positive
36.71
Positive
30.46
Positive
Market Momentum
3.86
Negative
84.47
Negative
98.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECO, the sentiment is Positive. The current price of 53.2 is above the 20-day moving average (MA) of 44.74, above the 50-day MA of 39.75, and above the 200-day MA of 30.46, indicating a bullish trend. The MACD of 3.86 indicates Negative momentum. The RSI at 84.47 is Negative, neither overbought nor oversold. The STOCH value of 98.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ECO.
Okeanis Eco Tankers Corp. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.08B | 7.52 | 8.81% | 0.39% | -1.33% | -33.66% | |
71 Outperform | $2.11B | 14.32 | ― | 6.50% | -12.47% | -34.41% | |
69 Neutral | $1.03B | ― | -0.48% | 4.04% | -24.58% | -110.22% | |
69 Neutral | $665.42M | 18.61 | 6.46% | 2.80% | -26.81% | -78.30% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $1.21B | 98.79 | 2.57% | 10.65% | -16.03% | -97.01% | |
59 Neutral | $1.46B | -54.18 | -2.53% | 12.24% | -11.10% | -101.57% |
* Energy Sector Average
ECO
Okeanis Eco Tankers Corp.
54.05
34.60
177.91%
GNK
Genco Shipping
24.05
10.36
75.71%
NMM
Navios Maritime Partners
72.16
31.39
76.98%
NAT
Nordic American Tanker
5.73
3.55
162.84%
SFL
SFL Corporation
11.01
2.94
36.45%
ASC
Ardmore Shipping
16.38
7.54
85.38%
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.