Costamare (NYSE:CMRE) Valuation in Focus After Asset Reduction in Latest 2025 Interim Results

Costamare (NYSE:CMRE) just released its interim financial results for the first half of 2025, providing investors with updated figures. The key headline is that total assets have decreased from $5.1 billion at the end of 2024 to $3.7 billion by mid-2025. This shift reflects changes in Costamare’s balance sheet and potentially its business strategy. For those following shipping stocks, these updates encourage a closer examination of both what has changed and why it may be significant for the stock moving forward.

This asset reduction is the latest notable development in what has already been an eventful year for Costamare. The stock has gained 22% over the last month and 39% over the past three months, although it continues to show a slight loss year to date. Recent momentum has increased, even as revenue and net income growth have remained modest. This trend suggests that the market may be anticipating a shift in the company’s prospects or reevaluating risk within the maritime sector.

Given the rapid price movement in recent months and current focus on underlying fundamentals, investors may be considering whether there is still value in Costamare or if expectations for near-term growth are already reflected in the current market price.

Most Popular Narrative: 15.7% Overvalued

According to the community narrative, Costamare is considered overvalued by 15.7% when compared to analysts' discounted cash flow and earnings assumptions for the coming years.

Analysts are projecting that Costamare's revenue will decrease by 40.1% annually over the next 3 years. They also expect profit margins to increase from 15.1% today to 63.6% in 3 years.

It's worth considering how shrinking revenues and rising profit margins could contribute to a perception of overvaluation. This narrative presents a controversial combination of steep revenue contraction and historically high profitability to support its target. Interested in how these forecasts diverge from industry norms or could influence Costamare's future valuation? Explore what makes this community forecast stand out.

Result: Fair Value of $10.15 (OVERVALUED)

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

However, Costamare’s strong pipeline of long-term contracts and disciplined fleet renewal could support stable earnings, even if broader shipping conditions soften.

Find out about the key risks to this Costamare narrative.

Another View: What Does Our DCF Model Say?

While the community sees Costamare as overvalued based on earnings forecasts, our DCF model offers a very different perspective. It suggests the shares might actually be trading well below their fair value. Are the market’s assumptions too pessimistic?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Costamare for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Costamare Narrative

If you prefer to examine the figures yourself or want to draw different conclusions, you can put together your own narrative in just a few minutes, and do it your way.

A great starting point for your Costamare research is our analysis highlighting 2 key rewards and 4 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.

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