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Costamare (NYSE:CMRE): Assessing Valuation After a 71% One-Year Share Price Surge

Simply Wall St · 1d ago

Costamare (CMRE) has quietly outpaced much of the shipping sector, with shares up about 19% in the past 3 months and roughly 71% over the past year, despite falling revenue.

See our latest analysis for Costamare.

That move reflects a market that has steadily re-rated Costamare, with the recent 1 year total shareholder return of about 71 percent reinforcing the longer term trend of strong compounding gains.

If Costamare's run has you rethinking where momentum might build next, it could be worth exploring fast growing stocks with high insider ownership as another source of potential stand out ideas.

Yet with earnings still growing as revenue shrinks and the share price now above analyst targets, investors face a key question: Is Costamare mispriced value, or has the market already baked in years of growth?

Most Popular Narrative: 21.7% Overvalued

With Costamare closing at $15.21 against a most popular narrative fair value of $12.50, the story centers on rich expectations for durable earnings strength.

The recent long term charters for new containership orders and forward fixtures (with $310 million incremental contracted revenues and $2.5 billion total contracted revenues) may be leading the market to expect sustained high earnings and cash flow visibility, which could overstate future earnings if market conditions weaken.

Read the complete narrative.

Want to see what really underpins that premium? The narrative leans on shrinking revenues, expanding margins, and a future earnings multiple that breaks from today’s shipping playbook. Curious which assumptions do the heavy lifting?

Result: Fair Value of $12.50 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the narrative could unravel if charter markets stay tighter for longer and Costamare's leasing platform delivers steadier, less cyclical cash flows than expected.

Find out about the key risks to this Costamare narrative.

Build Your Own Costamare Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a fresh view in minutes: Do it your way.

A great starting point for your Costamare research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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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.