- If you are wondering whether Costamare's current share price offers value or risk, this article walks through what the numbers actually say about the stock.
- Over the past year, Costamare's share price return stands at 126.4%, with a 7.1% return year to date and 4.4% over the last 30 days, while the most recent 7 day period shows a 3.7% decline.
- Recent news around shipping, charter rates, and trade flows has kept attention on container ship and dry bulk owners. This has put companies like Costamare under a closer spotlight and helps frame whether the latest share price moves are being driven more by sentiment or by changes in perceived long term fundamentals.
- On our valuation checks, Costamare scores 5 out of 6 for potential undervaluation, giving it a value score of 5. Next we will look at how traditional valuation methods assess the stock, before finishing with a broader way to think about its value story.
Approach 1: Costamare Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow (DCF) model estimates what a company might be worth by projecting its future cash flows and then discounting those back to a single value today.
For Costamare, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in $. The latest twelve month Free Cash Flow is about $337.4 million. Analysts provide explicit forecasts for the next few years, such as $431 million in 2026 and $222 million in 2027. Simply Wall St then extends this path further using its own assumptions to reach a ten year set of projections.
Those projected cash flows, once discounted, imply an estimated intrinsic value of $21.60 per share. Compared with the current share price, the DCF output points to a 22.2% discount, which indicates the stock screens as undervalued on this model.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Costamare is undervalued by 22.2%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks.
Approach 2: Costamare Price vs Earnings
For a profitable company like Costamare, the P/E ratio is a useful way to link what you pay for each share to the earnings that support it. In general, investors tend to accept a higher P/E when they expect stronger growth or lower risk, and a lower P/E when they see weaker growth or higher risk, so there is no single “right” number.
Costamare currently trades on a P/E of 5.46x. That sits below the Shipping industry average of 10.88x and also below the peer group average of 6.17x. This indicates that the market is pricing Costamare’s earnings more conservatively than these benchmarks.
Simply Wall St’s Fair Ratio is a proprietary estimate of what Costamare’s P/E might be, given factors such as its earnings profile, industry, profit margins, market cap and risk characteristics. This Fair Ratio for Costamare is 9.69x. It is designed to be more tailored than a simple comparison with peers or the broader industry because it adjusts for those company specific drivers.
Compared with the current P/E of 5.46x, the Fair Ratio of 9.69x suggests the shares are trading below the level implied by these fundamentals.
Result: UNDERVALUED
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Upgrade Your Decision Making: Choose your Costamare Narrative
Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St’s Community page you can use Narratives to connect your own story about Costamare to a financial forecast and fair value. You can then compare that fair value with the current share price to think about whether it may be a time to buy or sell, and see it all refresh automatically as new news or earnings arrive. For example, one investor might build a Narrative where Costamare’s contracted revenue pipeline, expected 5.51% revenue contraction, 38.80% profit margin and 9.86x future P/E support a fair value of US$17. Another investor might use the same tools to arrive at a lower fair value based on more cautious assumptions about trade patterns, regulations and costs.
Do you think there's more to the story for Costamare? Head over to our Community to see what others are saying!
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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