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EuroDry Ltd (EDRY)
NASDAQ:EDRY
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EuroDry
(NASDAQ:EDRY)
Rating:45Neutral
Price Target:
$9.00
▲(0.90%Upside)
Positive Factors
Asset sale
Eurodry expects to book a gain of approximately $2.1 million from the sale of M/V Tasos.
Cash flow generation
Expectations for EDRY to generate free cash flow in the last three quarters of 2025 and in 2026 despite reducing estimates for lower TCE rates.
Fleet expansion
EuroDry Ltd. announced agreements to build two new dry bulk ships with scheduled delivery in 2027.
Negative Factors
Economic conditions
Demand from China for dry bulk imports decreased compared to the prior year due to slower economic growth and previous coal and iron ore inventory stockpiling.
Economic outlook
Charter rates have continued to decline due, in part, to a weak outlook for the economy in China.
Shipping rates
Dry bulk rates decreased due to lower demand in China for imports such as coal and iron, impacting shipping rates negatively.
EuroDry (EDRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.13M
Dividend YieldN/A
Average Volume (3M)3.90K
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth10.25%
EPS Growth-269.52%
CountryUS
EmployeesN/A
SectorIndustrials
Sector Strength87
IndustryMarine Shipping
Share Statistics
EPS (TTM)-2.07
Shares Outstanding2,826,697
10 Day Avg. Volume5,128
30 Day Avg. Volume3,895
Financial Highlights & Ratios
PEG Ratio5.71
Price to Book (P/B)0.43
Price to Sales (P/S)0.00
P/FCF Ratio-10.30
Enterprise Value/Market Cap3.84
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit9.25
Enterprise Value/Ebitda1.56
Forecast
1Y Price Target
$17.50Price Target Upside96.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EuroDry Business Overview & Revenue Model
Company DescriptionEuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. The company owns and operates drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. As of March 31, 2022, it operated a fleet of ten drybulk carriers comprising five Panamax drybulk carriers, two Ultramax drybulk carrier, two Kamsarmax carriers, and one Supramax drybulk carrier with a cargo capacity of 726,555 deadweight tons. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.
How the Company Makes MoneyEuroDry generates revenue through the chartering of its dry bulk vessels to customers under time charters or spot market voyages. In time charters, the company leases its vessels to clients for a fixed period at a pre-determined rate, providing a stable income stream. In the spot market, vessels are chartered for single voyages at prevailing market rates, which can be more volatile but potentially more lucrative. The company's earnings are influenced by factors such as global trade volumes, shipping demand, and fluctuating charter rates. EuroDry may also engage in strategic partnerships or joint ventures to optimize its fleet utilization and expand its market presence.
EuroDry Earnings Call Summary
Earnings Call Date:Jun 05, 2025
(Q1-2025)
| % Change Since: 1.83%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Negative
The earnings call highlighted some strategic moves like the share repurchase program and fleet expansion plans. However, these were overshadowed by significant challenges, including a substantial drop in revenue, increased net losses, and ongoing weakness in freight markets. The broader economic outlook also remains concerning, with downward revisions in global growth forecasts and a weaker demand outlook for the dry bulk sector.Q1-2025 Updates
Positive Updates
Share Repurchase Program
Since initiating the 10 million share repurchase program in August 2022, EuroDry has repurchased 334,000 shares totaling $5.3 million, reflecting confidence in the company's long-term value.
Fleet Expansion Plans
EuroDry's current fleet consists of 12 vessels, and with the addition of 2 Ultramax vessels under construction, the fleet will grow to 14 vessels by 2027.
Sale of Motor Vessel Tasos
The company recorded a net book profit of $2.1 million from the sale of the motor vessel Tasos.
Negative Updates
Significant Revenue Decrease
Total net revenues for Q1 2025 were $9.2 million, a 36.2% decrease from $14.4 million in Q1 2024, primarily due to decreased time charter rates and a reduced number of vessels.
Net Loss Increase
The company reported a net loss of $4 million for Q1 2025, compared to a net loss of $1.9 million in Q1 2024.
Freight Market Weakness
Both the Baltic Panamax Index and the Baltic Dry Index experienced notable contractions during Q1 2025, declining by 27% and 16% year-on-year, respectively.
Global Economic Concerns
IMF revised global GDP growth forecast for 2025 downward to 2.8%, with significant reductions also in U.S. and European economic growth projections.
Demand Outlook for Dry Bulk Sector
Clarksons projects a contraction in trade growth by 0.2% in 2025, with a modest recovery of 0.6% anticipated in 2026, reflecting increased macroeconomic headwinds.
Company Guidance
During the EuroDry Limited conference call for the first quarter of 2025, the company reported total net revenues of $9.2 million, with a net loss attributable to controlling shareholders of $3.7 million, translating to a $1.35 loss per basic and diluted share. The adjusted net loss for the quarter was $5.7 million or $2.07 per share, while adjusted EBITDA stood at a negative $1 million. The company has repurchased 334,000 shares totaling $5.3 million under its share repurchase program. EuroDry's fleet consists of 12 vessels with a carrying capacity of approximately 843,000 deadweight tons, and they have plans to expand this with two new Ultramax vessels in 2027. The current market environment shows a decline in spot and 1-year time charter rates for Panamax vessels, with broader market weakness noted in the Baltic indices and a challenging global economic outlook, including downward revisions in GDP growth forecasts by the IMF. EuroDry remains cautious about the dry bulk sector's outlook due to macroeconomic uncertainties, trade tensions, and geopolitical risks.EuroDry Financial Statement Overview
Summary
EuroDry faces significant challenges with negative net income impacting profitability. Revenue growth is inconsistent, and cash flows are strained, especially free cash flow. These issues highlight the need for improved financial stability and profitability.Income Statement
EuroDry's income statement reflects significant volatility. The company experienced a revenue growth of 28.32% in 2024, following a decline of 32.2% in 2023. Net profit margins are negative, with a notable decrease in net income from 2022 to 2024, indicating profitability challenges. Gross profit margins are relatively stable but insufficient to offset operating expenses, as evidenced by negative EBIT in 2024.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 1.08 in 2024, indicating balanced leverage relative to equity. However, the equity ratio of 45.06% suggests moderate reliance on debt financing. Return on equity has been negative due to net losses, highlighting the need for improved profitability.52
Neutral
Cash Flow
EuroDry's cash flow statement reveals negative free cash flow in recent years, with a significant decline in operating cash flow from 2023 to 2024. The operating cash flow to net income ratio is positive but diminishing, reflecting pressure on cash generation. Free cash flow remains under strain, demonstrating a need for better cash management.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 61.08M | 47.59M | 70.18M | 64.44M | 22.29M | Gross Profit |
| 20.81M | 8.47M | 42.12M | 43.98M | 3.84M | EBIT |
| -3.35M | 1.59M | 34.12M | 38.89M | -2.74M | EBITDA |
| 13.33M | 14.38M | 48.38M | 41.45M | 3.15M | Net Income Common Stockholders |
| -9.66M | -2.91M | 33.54M | 31.15M | -8.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.71M | 10.80M | 34.04M | 26.85M | 938.28K | Total Assets |
| 221.19M | 231.05M | 199.51M | 161.33M | 107.51M | Total Debt |
| 107.19M | 103.93M | 81.22M | 78.65M | 51.11M | Net Debt |
| 100.48M | 95.93M | 47.18M | 51.81M | 50.17M | Total Liabilities |
| 112.64M | 111.63M | 85.56M | 82.41M | 56.97M | Stockholders Equity |
| 99.69M | 109.66M | 113.94M | 78.92M | 50.54M |
| Cash Flow | Free Cash Flow | |||
| -3.92M | -53.50M | -4.80M | 2.31M | 1.71M | Operating Cash Flow |
| 4.81M | 11.81M | 32.99M | 39.14M | 2.33M | Investing Cash Flow |
| -8.73M | -65.30M | -28.40M | -36.82M | -611.11K | Financing Cash Flow |
| 1.73M | 30.47M | 3.01M | 22.61M | -6.24M |
EuroDry Technical Analysis
Positive
8.92
Price Trends
8.83
Positive
9.89
Negative
13.08
Negative
Market Momentum
-0.04
Negative
51.70
Neutral
69.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDRY, the sentiment is Positive. The current price of 8.92 is above the 20-day moving average (MA) of 8.67, above the 50-day MA of 8.83, and below the 200-day MA of 13.08, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.70 is Neutral, neither overbought nor oversold. The STOCH value of 69.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDRY.
EuroDry Risk Analysis
EuroDry disclosed 88 risk factors in its most recent earnings report. EuroDry 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
EuroDry Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $21.76M | 1.13 | 22.49% | ― | -15.10% | -9.38% | |
72 Outperform | $42.79M | 8.84 | 3.07% | ― | 3.83% | ― | |
70 Neutral | $29.15M | 5.42 | 10.31% | ― | 8.07% | -77.30% | |
66 Neutral | $4.51B | 12.22 | 5.40% | 3.63% | 4.14% | -12.01% | |
63 Neutral | $22.61M | 2.55 | 3.07% | ― | -45.58% | 45.06% | |
51 Neutral | $23.26M | 64.59 | 0.24% | ― | 11.74% | -91.84% | |
45 Neutral | $25.13M | ― | -11.54% | ― | 10.25% | -269.52% |
* Industrials Sector Average
Performance Comparison
EDRY
EuroDry
8.92
-13.51
-60.23%
PSHG
Performance Shipping
1.84
-0.40
-17.86%
GLBS
Globus Maritime
1.35
-0.61
-31.12%
TOPS
Top Ships
9.62
-2.34
-19.57%
PXS
Pyxis Tankers
3.10
-1.96
-38.74%
CTRM
Castor Maritime
2.49
-2.21
-47.02%
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.