EuroDry (EDRY) AI Stock Analysis

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EuroDry

(NASDAQ:EDRY)

47Neutral

EuroDry's overall stock score reflects significant financial performance challenges, with consistent revenue and profitability issues. While technical analysis provides a neutral outlook, valuation remains a concern due to negative earnings. The strategic steps highlighted in the earnings call offer some optimism, but ongoing economic and market uncertainties pose risks.

Positive Factors

Asset sales

Eurodry expects to book a gain of approximately $2.1 million from the sale of M/V Tasos.

Financial management

Analysts expect Eurodry to use free cash flow to reduce debt, indicating financial management efforts.

Revenue projections

2026 estimates introduce a forecast of rising TCE rates and revenue, suggesting a potential rebound in demand and improvement in market conditions.

Negative Factors

Earnings forecast

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.

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. S&P 500 (SPY)

Market Cap

$24.82M

Dividend YieldN/A

Average Volume (3M)5.58K

Price to Earnings (P/E)―

Beta (1Y)0.66

Revenue Growth28.35%

EPS Growth-238.53%

CountryUS

EmployeesN/A

SectorIndustrials

Sector Strength64

IndustryMarine Shipping

Share Statistics

EPS (TTM)-3.53

Shares Outstanding2,826,697

10 Day Avg. Volume3,309

30 Day Avg. Volume5,583

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.63

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

$21.00

Price Target Upside133.07% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

EuroDry Business Overview & Revenue Model

Company DescriptionEuroDry Ltd. (EDRY) is a Greece-based shipping company primarily engaged in the ocean transportation of dry bulk cargoes worldwide. The company operates a fleet of dry bulk vessels that transport major bulks such as iron ore, coal, and grains, as well as minor bulks like bauxite, phosphate, and fertilizers. EuroDry's operations are focused on providing reliable and efficient shipping services to its clients, leveraging its expertise in maritime logistics and fleet management.

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 Financial Statement Overview

Summary

EuroDry faces challenges across its financial statements, with negative net income impacting profitability and return metrics. Revenue growth is inconsistent, and cash flows are strained, particularly free cash flow. Maintaining financial stability requires addressing these issues to improve liquidity and profitability going forward.

Income Statement

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Negative

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price9.01

Price Trends

50DMA

10.77

Negative

100DMA

11.61

Negative

200DMA

16.24

Negative

Market Momentum

MACD

0.07

Negative

RSI

49.38

Neutral

STOCH

16.04

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDRY, the sentiment is Negative. The current price of 9.01 is below the 20-day moving average (MA) of 10.62, below the 50-day MA of 10.77, and below the 200-day MA of 16.24, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 16.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBLK	72 Outperform	$1.63B	4.96	14.71%	15.41%	33.31%	62.94%
SB	70 Outperform	$338.97M	3.88	11.99%	6.21%	8.17%	35.92%
GNK	69 Neutral	$519.08M	6.94	8.30%	12.03%	10.21%	―
GOGL	68 Neutral	$1.45B	6.50	11.68%	14.48%	9.33%	98.70%
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%
DSX	55 Neutral	$156.29M	22.96	2.56%	12.50%	-12.93%	-86.34%
EDRY	47 Neutral	$24.82M	―	-9.22%	―	28.35%	-238.53%

* Industrials Sector Average

Performance Comparison

EDRY

EuroDry

9.01

-11.20

-55.42%

DSX

Diana Shipping

1.32

-1.36

-50.75%

GNK

Genco Shipping

11.36

-7.62

-40.15%

Safe Bulkers

3.05

-1.48

-32.67%

SBLK

Star Bulk Carriers

12.66

-8.85

-41.14%

GOGL

Golden Ocean Group

6.51

-5.11

-43.98%

EuroDry Earnings Call Summary

Earnings Call Date: Feb 24, 2025 | % Change Since: -14.19% | Next Earnings Date: May 14, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strategic steps taken by EuroDry Ltd., such as a share repurchase plan, successful refinancing, and new vessel orders. However, the company faced significant challenges, including a net loss, declining Panamax rates, and a decrease in adjusted EBITDA. Global economic concerns and a limited order book further complicate the outlook.

Highlights

Share Repurchase Program

Since the initiation of the share repurchase plan of up to $10 million in August 2022, EuroDry Ltd. has repurchased 334,000 shares for a total of $5.3 million.

Successful Refinancing

Refinancing of two vessels to a $30 million loan increased cash reserves by about $11 million.

New Vessel Orders

Signed a contract for the construction of two eco-friendly Kamsarmax bulk carriers, scheduled for delivery in 2027.

Fleet Utilization

Achieved a 100% commercial utilization rate and 99.4% operational utilization rate for the fourth quarter of 2024.

Improvement in Spot Rates

From year-end 2024 to February 2025, one-year time charter rates for Panamax vessels increased by 12%, and spot rates increased by 14%.

Lowlights

Net Loss Reported

Reported a net loss of $3.3 million for Q4 2024, with a basic and diluted loss per share of $1.20.

Panamax Rate Decline

Panamax rates experienced a decline, with spot rates dropping to about $7,700 per day by the end of Q4 2024.

Adjusted EBITDA Decrease

Adjusted EBITDA for Q4 2024 was $4.8 million, down from $6.6 million in the same period last year.

Global Economic Concerns

The IMF projects only slight global GDP growth, with geopolitical conflicts posing risks to medium-term growth prospects.

Order Book Challenges

The order book is at just 10.5% of the fleet, indicating limited new vessel orders amid shipyard capacity constraints.

Company Guidance

In the EuroDry Ltd. conference call for the fourth quarter of 2024, the company reported total net revenues of $14.5 million and a net loss attributable to controlling shareholders of $3.3 million, or $1.20 loss per basic and diluted share. The adjusted net loss for the quarter was $0.7 million, or $0.25 per share, with an adjusted EBITDA of $4.8 million. The company incurred a $2.8 million paper loss due to an impairment on an older vessel. During this period, EuroDry refinanced two vessels with a $30 million loan, boosting cash reserves by $11 million. Their share repurchase program, extended to August 2025, has seen the repurchase of 334,000 shares for $5.3 million. The company also signed contracts for two new eco-friendly Kamsarmax bulk carriers to be delivered in 2027, each costing $36 million. EuroDry's fleet, consisting of thirteen vessels with a total cargo capacity of approximately 920,000 deadweight tons, will drop to twelve after selling the motor vessel Tassos for $5 million, with a gain of $2.1 million expected from the sale. The fleet's average age will decrease to 13.6 years post-sale. Looking ahead, the company is cautious about the dry bulk market, citing geopolitical tensions, trade policy shifts, and environmental regulations as potential challenges, while maintaining a watchful eye on fleet supply constraints and charter rate fluctuations.

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.