Costamare (CMRE) AI Stock Analysis

422 Followers

Top Page

Costamare

(NYSE:CMRE)

64Neutral

Costamare's overall stock score reflects strong financial health and an attractive valuation, making it appealing from a fundamental perspective. However, the technical indicators suggest bearish momentum, which could be a short-term headwind. The positive sentiment from the earnings call is somewhat tempered by market risks, particularly in the dry bulk segment.

Costamare (CMRE) vs. S&P 500 (SPY)

Market Cap

$1.09B

Dividend Yield5.04%

Average Volume (3M)574.27K

Price to Earnings (P/E)3.7

Beta (1Y)0.88

Revenue Growth37.10%

EPS Growth-17.36%

CountryUS

Employees2,430

SectorIndustrials

Sector Strength61

IndustryMarine Shipping

Share Statistics

EPS (TTM)2.44

Shares Outstanding119,961,490

10 Day Avg. Volume718,923

30 Day Avg. Volume574,268

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.58

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$12.00

Price Target Upside31.58% Upside

Rating ConsensusHold

Number of Analyst Covering1

Costamare Business Overview & Revenue Model

Company DescriptionCostamare Inc. owns and charters containerships to liner companies worldwide. As of March 18, 2022, it had a fleet of 76 containerships with a total capacity of approximately 557,400 twenty-foot equivalent units and 45 dry bulk vessels with a total capacity of approximately 2,435,500 DWT. The company was founded in 1974 and is based in Monaco.

How the Company Makes MoneyCostamare makes money through long-term, fixed-rate time charters with major liner companies. The company leases its containerships to shipping lines, which pay a daily charter rate for the use of the vessels over a contracted period. These charter agreements provide a steady revenue stream, insulating Costamare from the volatility of freight rates in the spot market. Additionally, Costamare benefits from its strategic partnerships with leading shipping lines, which help ensure high vessel utilization and stable cash flows. The company may also generate revenue from the sale and purchase of vessels, as well as from value-added services associated with ship management.

Costamare Financial Statement Overview

Summary

Costamare demonstrates a robust financial profile with strong revenue growth and profitability. The balance sheet shows improved leverage ratios and a solid equity base, while cash flow management highlights the company's capacity to generate operational cash. While fluctuations in free cash flow and net income have been noted, the overall financial health remains strong, positioning the company well in the transportation industry.

Income Statement

Positive

Costamare's income statement shows strong revenue growth over the years, evidenced by a significant increase from $460 million in 2020 to $2.08 billion in 2024. The gross profit margin remains healthy, and the company has demonstrated an ability to maintain robust EBIT and EBITDA margins. Despite a slight decline in net income in 2024, overall profit margins are commendable, indicating effective cost management and profitability.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a healthy equity base. The debt-to-equity ratio has improved over time, showing a decrease in leverage risk. Return on equity is strong, although fluctuations in net income have impacted its consistency. The equity ratio indicates a balanced asset-financing structure, suggesting financial stability.

Cash Flow

Positive

Costamare's cash flow statement reveals a positive trend in operating cash flow, which supports net income effectively. However, the free cash flow has shown volatility, particularly due to significant capital expenditures in certain years. The company has managed to sustain free cash flow to net income ratios, reflecting its ability to generate cash from operations despite investment activities.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.08B	1.51B	1.11B	793.64M	460.32M
	Gross Profit
556.66M	436.42M	600.66M	441.87M	211.62M
	EBIT
463.91M	468.01M	380.18M	277.96M	194.07M
	EBITDA
619.87M	730.09M	853.31M	649.28M	177.82M
	Net Income Common Stockholders
319.92M	385.75M	554.96M	435.12M	-71.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
741.28M	790.40M	838.06M	276.00M	143.92M
	Total Assets
5.15B	5.29B	4.90B	4.41B	3.01B
	Total Debt
2.35B	2.65B	2.58B	2.56B	1.59B
	Net Debt
1.63B	1.90B	1.87B	2.28B	1.44B
	Total Liabilities
2.58B	2.85B	2.74B	2.68B	1.66B
	Stockholders Equity
2.51B	2.38B	2.16B	1.73B	1.35B
Cash Flow		Free Cash Flow
257.23M	49.04M	519.70M	-525.60M	172.37M
	Operating Cash Flow
537.72M	331.37M	581.59M	466.49M	274.28M
	Investing Cash Flow
-79.51M	79.09M	42.49M	-787.46M	-36.40M
	Financing Cash Flow
-505.48M	-396.81M	-166.05M	482.59M	-241.86M

Costamare Technical Analysis

Technical Analysis Sentiment

Negative

Last Price9.12

Price Trends

50DMA

10.27

Negative

100DMA

11.56

Negative

200DMA

12.88

Negative

Market Momentum

MACD

-0.16

Negative

RSI

48.56

Neutral

STOCH

30.30

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMRE, the sentiment is Negative. The current price of 9.12 is below the 20-day moving average (MA) of 9.84, below the 50-day MA of 10.27, and below the 200-day MA of 12.88, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 48.56 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMRE.

Costamare Risk Analysis

Costamare disclosed 72 risk factors in its most recent earnings report. Costamare 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

Costamare Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSL	78 Outperform	$696.85M	2.02	26.71%	8.85%	5.37%	16.97%
ESEA	77 Outperform	$198.25M	1.74	35.83%	8.32%	12.43%	-1.63%
NMM	75 Outperform	$922.96M	2.61	12.46%	0.68%	2.08%	-14.91%
SBLK	72 Outperform	$1.58B	4.83	14.71%	15.82%	33.31%	62.94%
SB	70 Outperform	$345.28M	3.95	11.99%	6.56%	8.17%	35.92%
CMRE	64 Neutral	$1.09B	3.74	13.07%	5.04%	37.10%	-17.36%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.61%	-14.41%

* Industrials Sector Average

Performance Comparison

CMRE

Costamare

8.66

-2.31

-21.06%

ESEA

Euroseas

28.67

1.41

5.17%

GSL

Global Ship Lease

18.92

-1.23

-6.10%

NMM

Navios Maritime Partners

31.00

-12.21

-28.26%

Safe Bulkers

3.21

-1.37

-29.91%

SBLK

Star Bulk Carriers

13.17

-8.01

-37.82%

Costamare Earnings Call Summary

Earnings Call Date: Feb 5, 2025 | % Change Since: -21.98% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive outlook with strong financial results, high liquidity, and strategic fleet management despite challenges in the dry bulk market and potential shifts in market dynamics.

Highlights

Strong Financial Performance

Adjusted net income for the fourth quarter of 2024 was approximately $82 million, contributing to an annual adjusted net income of around $330 million or $2.76 per share.

High Liquidity Levels

The company maintains strong liquidity with over $940 million available, providing opportunities for future growth and investments.

Successful Chartering and Contracting

Chartered 12 containerships with estimated contracted revenues close to $330 million and total contracted revenues amounting to $2.4 billion with a TEU-weighted remaining duration of 3.4 years.

Strategic Fleet Management

Acquired 1 Capesize and 2 Ultramax vessels, while disposing of 1 Handysize ship and agreeing to sell 1 Panamax vessel, aligning with the strategy to renew and increase the average size of the owned fleet.

Growth in Neptune Maritime Leasing

Neptune Maritime Leasing continues to grow with total investments and commitments exceeding $500 million.

Lowlights

Dry Bulk Market Weakness

Charter rates in the dry bulk market dropped to their lowest levels of 2024 during the last quarter, with continued softness into 2025 due to oversupply and pressures in the China steel market.

Potential Market Dynamics Shift

The return to the Suez Canal route and new building capacity could affect the containership market dynamics, posing a risk to current favorable conditions.

Company Guidance

During the fourth quarter of 2024, Costamare Inc. reported an adjusted net income of approximately $82 million, with liquidity standing at around $940 million. The company has chartered 12 containerships on a forward basis, securing estimated contracted revenues close to $330 million. Their containership fleet is employed at 96% for 2025 and 69% for 2026, contributing to total contracted revenues of $2.4 billion with a remaining time charter duration of about 3.4 years. In the dry bulk market, Costamare acquired a Capesize and two Ultramax vessels, while selling one Handysize ship and agreeing to sell one Panamax vessel. The dry bulk charter rates have reached their lowest levels in 2024 and remain soft into 2025. Neptune Maritime Leasing has a pipeline exceeding $500 million in investments and commitments, while Costamare's overall net income for the year reached around $330 million, or $2.76 per share.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.