Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Costamare Inc is a Monaco-based company that provides containerships and dry bulk vessels for charter. The Business operates in the international shipping sector and has a fleet of 73 containerships, with a combined capacity of over 537,000 TEU (including two vessels that have agreed to sell), and 45 dry bulk vessels, with a combined capacity of roughly 2,436,000 DWT.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

The profit margins for CMRE in FY22 were exceptional in comparison to the industry median. CMRE has surpassed the industry median in every category, demonstrating efficient resource allocation and operational performance. In comparison to the industry median current ratio of 1.67x, the accompanying graph shows that CMRE has respectable short-term liquidity with a current ratio of 2.4x in FY22.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~71.72% of the total shareholding, signifying concentrated shareholding. Konstantakopoulos (Konstantinos) and Konstantakopoulos (Achillefs) are the biggest shareholders, holding the maximum stake in the company at ~24.98% and ~17.35%, respectively.

1.5 Consistent dividend payments history since 2011:

Since 2011, CMRE has distributed quarterly dividends. The company announced a dividend on the common stock on January 3, 2023, at a rate of USD 0.115 per share. The dividend was paid on February 7, 2023, to holders of record of the common stock as of January 20, 2023. The Company declared a dividend on January 3, 2023, which was paid on January 17, 2023, to holders of record as of January 13, 2023. The dividend amounts were USD 0.476 per share on the Series B Preferred Stock, USD 0.53 per share on the Series C Preferred Stock, USD 0.54 on the Series D Preferred Stock, and USD 0.55 on the Series E Preferred Stock. There are still around USD 90 million in available funds for common shares and USD 150 million in available funds for preferred shares under the share buyback program.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of FY22:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance

CMRE shares are down 11.4% in the past 6-months, and down 7.95% in a past nine months. The stock is leaning towards the lower band of its 52-week range of USD 17.45 and 52-week low price of USD 8.55. The price is currently closer to its important support range of USD 8.50- 9.50.The price is currently trading between both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 54.49,with the expectation of a continuation of the upward momentum after a healthy correction. 

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 21, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.