Okeanis Eco Tankers Corp. (ECO) AI Stock Analysis

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Okeanis Eco Tankers Corp.

(NYSE:ECO)

Rating:79Outperform

Price Target:

$27.00

▲(14.41% Upside)

Okeanis Eco Tankers Corp. scores well due to its strong financial performance and attractive valuation, despite challenges with high leverage and revenue decline. The positive market outlook and strategic advantages in the eco-friendly fleet further support the stock's potential.

Okeanis Eco Tankers Corp. (ECO) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$808.47M

Dividend Yield9.41%

Average Volume (3M)103.49K

Price to Earnings (P/E)9.8

Beta (1Y)0.41

Revenue Growth-12.00%

EPS Growth-40.93%

CountryUS

Employees13

SectorEnergy

Sector Strength52

IndustryMarine Shipping

Share Statistics

EPS (TTM)0.36

Shares Outstanding32,194,107

10 Day Avg. Volume111,446

30 Day Avg. Volume103,487

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.62

Enterprise Value/Revenue3.61

Enterprise Value/Gross Profit8.74

Enterprise Value/Ebitda7.50

Forecast

1Y Price Target

$32.00

Price Target Upside35.59% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Okeanis Eco Tankers Corp. Business Overview & Revenue Model

Company DescriptionOkeanis Eco Tankers Corp. (ECO) is a shipping company that operates in the maritime industry, specializing in the transportation of crude oil and other petroleum products. The company focuses on eco-friendly transportation solutions, utilizing a modern fleet of energy-efficient tankers designed to reduce emissions and environmental impact. Okeanis Eco Tankers is committed to sustainable practices and innovation in the shipping sector, catering to global oil companies and traders.

How the Company Makes MoneyOkeanis Eco Tankers Corp. generates revenue primarily through the chartering of its fleet of eco-friendly tankers to oil companies and traders who require transportation of crude oil and petroleum products across international waters. The company engages in time charters and spot market voyages, where clients pay for the use of the tankers over a specified period or for single voyages, respectively. Key revenue streams include charter fees, voyage-related expenses, and potentially fuel efficiency savings which can enhance profitability. Okeanis Eco Tankers may also leverage partnerships with major oil companies to secure long-term contracts, providing a stable and predictable income stream. Additionally, the company's focus on eco-friendly and energy-efficient technologies may offer competitive advantages, attracting clients who prioritize sustainability and compliance with environmental regulations.

Okeanis Eco Tankers Corp. Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q1-2025)

% Change Since: -3.82%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial results and a positive market outlook supported by strategic refinancing and a young, eco-friendly fleet. However, concerns remain around high debt levels, geopolitical risks, and challenges posed by the shadow fleet. Despite these issues, the positive aspects and future potential trends seem to outweigh the negatives.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

Okeanis Eco Tankers reported an adjusted EBITDA of $32.5 million, adjusted net profit of $11.4 million, and adjusted EPS of $0.36. TCE revenue stood at $48.6 million with reported net income at $12.6 million, or $0.39 per share.

Dividend Distribution

The company declared a 12th consecutive dividend of $0.32 per share, with total distributions over the last four quarters at $2.22 per share, representing 91% of earnings.

Young and Eco-Friendly Fleet

Okeanis Eco Tankers operates the youngest crude oil tanker fleet among listed peers, with an average age of 5.6 years, fully scrubber-fitted for environmental compliance.

Optimistic Market Outlook

Market fundamentals have improved with increased OPEC+ production and geopolitical factors supporting fleet utilization and rates. VLCC and Suezmax rates are expected to rise, improving financial performance.

Successful Refinancing

The company successfully reduced interest expenses through refinancing and exercised purchase options for three vessels without penalties, financing two of them with favorable loan terms.

Negative Updates

High Debt Levels

The company's balance sheet debt remains high at $634 million with a book leverage of 59%.

Geopolitical Risks

Geopolitical uncertainties, particularly around trade flows and sanction dynamics, continue to affect the market outlook and could pose risks to future performance.

Shadow Fleet Challenges

The shadow fleet, which includes over-aged and under-maintained vessels, poses challenges in terms of market integration and fleet utilization.

Company Guidance

In the call, Okeanis Eco Tankers provided guidance for the second quarter of 2025, anticipating improvement in market fundamentals. The company projected 72% of VLCC spot days at a rate of $46,700 per day and 64% of Suezmax spot days at $60,600 per day. These projections come amidst a backdrop of favorable market dynamics, including OPEC+ accelerating the unwinding of production cuts, which supports the strong market environment. The company also highlighted the ongoing demand for eco-friendly and scrubber-fitted vessels, which positions them advantageously in the spot market. Moreover, Okeanis Eco Tankers emphasized their strategic focus on optimizing VLCC trade routes to enhance earnings, while maintaining a 100% spot market exposure to capture potential upsides in the latter half of the year.

Okeanis Eco Tankers Corp. Financial Statement Overview

Summary

Okeanis Eco Tankers demonstrates strong profitability with robust margins and efficient cash flow management. However, high leverage and declines in revenue and free cash flow growth present potential risks.

Income Statement

Very Positive

Okeanis Eco Tankers Corp. shows strong profitability metrics with a gross profit margin of 41.27% and a net profit margin of 22.05% for TTM. However, there is a noticeable decline in revenue growth, with a decrease of 7.87% in annual revenue from 2023 to TTM. Despite this, EBITDA and EBIT margins remain robust, supporting the company's operational efficiency.

Balance Sheet

Positive

The company's balance sheet reflects moderate financial health. The debt-to-equity ratio is high at 1.54, indicating significant leverage, which could pose risks in volatile market conditions. However, the equity ratio of 38.50% and return on equity of 19.39% suggest reasonable equity financing and profitability on equity investments.

Cash Flow

Positive

Cash flow analysis reveals solid performance with a free cash flow to net income ratio of 1.24, indicating efficient conversion of income to cash. The operating cash flow to net income ratio stands at 1.26, highlighting strong cash generation relative to profits. However, free cash flow growth has seen a decline of 39% from 2023 to TTM, which is a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	393.23M	413.10M	270.97M	169.00M	282.87M
Gross Profit	223.60M	221.41M	123.18M	44.63M	152.96M
EBITDA	204.08M	241.51M	160.60M	70.55M	180.59M
Net Income	108.86M	145.25M	84.56M	-902.90K	101.32M
Balance Sheet
Total Assets	1.08B	1.13B	1.18B	954.59M	1.26B
Cash, Cash Equivalents and Short-Term Investments	49.34M	49.99M	81.35M	38.18M	23.34M
Total Debt	646.18M	693.28M	739.04M	577.00M	834.48M
Total Liabilities	671.67M	720.98M	761.11M	596.30M	862.50M
Stockholders Equity	410.43M	408.13M	422.24M	358.29M	397.23M
Cash Flow
Free Cash Flow	162.82M	174.03M	-96.08M	8.21M	-19.96M
Operating Cash Flow	162.82M	174.03M	82.52M	28.59M	152.20M
Investing Cash Flow	-7.94M	960.59K	-178.72M	285.68M	-183.74M
Financing Cash Flow	-154.68M	-207.07M	138.97M	-299.43M	41.48M

Okeanis Eco Tankers Corp. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price23.60

Price Trends

50DMA

23.06

Positive

100DMA

22.59

Positive

200DMA

22.68

Positive

Market Momentum

MACD

0.30

Negative

RSI

56.62

Neutral

STOCH

58.71

Neutral

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 23.6 is above the 20-day moving average (MA) of 23.55, above the 50-day MA of 23.06, and above the 200-day MA of 22.68, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 58.71 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSL	81 Outperform	$1.04B	2.71	26.40%	6.64%	4.43%	17.82%
ECO	79 Outperform	$808.47M	9.78		9.41%	-12.00%	-40.93%
ASC	79 Outperform	$0.00	10.46	7.10%	6.48%	-21.59%	-70.74%
NMM	74 Outperform	$1.29B	4.02	11.19%	0.48%	0.28%	-17.08%
NAT	71 Outperform	$616.19M	16.99	6.96%	9.97%	-3.87%	-46.50%
GNK	70 Neutral	$727.30M	16.23	5.02%	7.03%	-7.38%	1295.53%
Sector *	66 Neutral	$15.08B	10.39	7.41%	5.57%	4.14%	-70.43%

* Energy Sector Average

Performance Comparison

ECO

Okeanis Eco Tankers Corp.

25.52

-1.66

-6.10%

GNK

Genco Shipping

16.93

0.79

4.89%

GSL

Global Ship Lease

29.16

4.00

15.90%

NMM

Navios Maritime Partners

44.20

-0.12

-0.27%

NAT

Nordic American Tanker

2.91

-0.26

-8.20%

ASC

Ardmore Shipping

11.18

-7.37

-39.73%

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.Date of analysis: Jul 24, 2025