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Eurodry (EDRY)
:EDRY
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EuroDry
(NASDAQ:EDRY)
Rating:45Neutral
Price Target:
$9.00
▼(-7.02%Downside)
Positive Factors
Asset Sale
Eurodry expects to book a gain of approximately $2.1 million from the sale of M/V Tasos.
Free Cash Flow
EuroDry Ltd. is expected to show free cash flow and fleet growth.
Market Conditions
2026 estimates introduce a forecast of rising TCE rates and revenue, suggesting a potential rebound in demand and improvement in market conditions.
Negative Factors
Demand from China
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.
Rates and Revenue
There is a reduction in the 2025 TCE rate estimate and revenue due to lower rates and demand, leading to a forecasted loss per share.
EuroDry (EDRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.94M
Dividend YieldN/A
Average Volume (3M)6.83K
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth10.25%
EPS Growth-269.52%
CountryUS
EmployeesN/A
SectorIndustrials
Sector Strength89
IndustryMarine Shipping
Share Statistics
EPS (TTM)-2.07
Shares Outstanding2,826,697
10 Day Avg. Volume10,253
30 Day Avg. Volume6,825
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.28
Price to Sales (P/S)0.00
P/FCF Ratio-3.04
Enterprise Value/Market Cap4.65
Enterprise Value/Revenue0.54
Enterprise Value/Gross Profit12.00
Enterprise Value/Ebitda2.03
Forecast
1Y Price Target
$16.33Price Target Upside68.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EuroDry Business Overview & Revenue Model
Company DescriptionEuroDry Ltd. (EDRY) is an international shipping company that specializes in the transportation of dry bulk cargoes. The company operates a fleet of dry bulk carriers, including Panamax, Kamsarmax, and Ultramax vessels, which are used to transport major bulk commodities such as iron ore, coal, and grains. EuroDry is focused on providing reliable and efficient shipping services to a diverse range of customers across the globe, playing a crucial role in the global supply chain of raw materials.
How the Company Makes MoneyEuroDry generates revenue primarily through the chartering of its vessels to customers on a time charter or voyage charter basis. In a time charter arrangement, the company leases its vessels to customers for a specified period, receiving a fixed daily rate, while voyage charters involve leasing the vessels for specific voyages with a rate based on the volume of cargo transported. The company's earnings are influenced by factors such as charter rates, the size and efficiency of its fleet, and market demand for dry bulk shipping. Strategic partnerships with other shipping companies or stakeholders in the maritime industry can also contribute to its revenue by providing access to more lucrative charter contracts or expanding its operational capabilities.
EuroDry Earnings Call Summary
Earnings Call Date:Jun 05, 2025
(Q1-2025)
| % Change Since: 10.50%|
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 |
| EBITDA | 13.33M | 14.38M | 48.38M | 41.45M | 3.15M |
| Net Income | -9.66M | -2.91M | 33.54M | 31.15M | -8.21M |
Balance Sheet | |||||
| Total Assets | 221.19M | 231.05M | 199.51M | 161.33M | 107.51M |
| Cash, Cash Equivalents and Short-Term Investments | 6.71M | 10.80M | 34.04M | 26.85M | 938.28K |
| Total Debt | 107.19M | 103.93M | 81.22M | 78.65M | 51.11M |
| 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
9.68
Price Trends
8.98
Positive
9.61
Positive
12.22
Negative
Market Momentum
0.21
Negative
57.73
Neutral
20.28
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 9.68 is above the 20-day moving average (MA) of 9.34, above the 50-day MA of 8.98, and below the 200-day MA of 12.22, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 20.28 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $22.00M | 1.14 | 22.49% | ― | -15.10% | -9.38% | |
66 Neutral | $30.37M | 5.15 | 10.31% | ― | 8.07% | -77.30% | |
63 Neutral | $22.51M | 2.63 | 3.07% | ― | -32.07% | -9.50% | |
59 Neutral | $27.76M | 5.65 | 3.07% | ― | 3.83% | ― | |
59 Neutral | AU$1.63B | 9.68 | 11.24% | 3.66% | 6.75% | 3.18% | |
47 Neutral | $23.16M | 61.24 | -0.43% | ― | 17.92% | -131.47% | |
45 Neutral | $26.94M | ― | -11.54% | ― | 10.25% | -269.52% |
* Industrials Sector Average
Performance Comparison
EDRY
EuroDry
9.95
-13.13
-56.89%
PSHG
Performance Shipping
1.87
-0.18
-8.78%
GLBS
Globus Maritime
1.14
-0.61
-34.86%
TOPS
Top Ships
6.15
-3.74
-37.82%
PXS
Pyxis Tankers
2.95
-1.98
-40.16%
CTRM
Castor Maritime
2.38
-2.11
-46.99%
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.