CMRE - Costamare: The Dry Bulk Sector FCF Growth Make It Cheap

2024-03-07 07:38:18 ET

Summary

• Costamare is experiencing growth momentum in the dry bulk sector, which could drive net sales and EPS growth.
• The company has a significant amount of cash on hand and a strong liquidity position.
• Recent investments in the leasing platform and financing of new vessels could accelerate new sales growth.

Costamare Inc. ( CMRE ) appears to be celebrating recent investments in the dry bulk sector as EPS, and FCF growth momentum increases. Also, expenditures in the leasing platform, and funding of new vessels could also serve as net sales catalysts in the coming years. I did appreciate also that CMRE recently classified new vessels as held for sale, which may bring more cash in hand to refinance the balance sheet. Recent dividend growth, and the ongoing repurchase of shares at close to $9.5-$10 also appears beneficial. There are some risks from the total amount of debt, rate changes in the industry, or even the action of competitors. However, I do believe that the company is undervalued at the current stock price.

Costamare

Costamare is a company in the field of logistics, and particularly maritime logistics, which according to Alphaliner reports for April 2023 was the third largest owner of containers in the world....

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