Earnings trends and dividend signal

Costamare (CMRE) reported first quarter revenue of US$211.06 million and net income of US$80.4 million, both lower than the same period last year, and outlined plans to raise its quarterly dividend.

Basic earnings per share from continuing operations came in at US$0.62, compared with US$0.88 a year earlier, while basic earnings per share including all operations was US$0.62 versus US$0.79 in the prior year period.

Alongside these results, the company said it will recommend increasing the quarterly dividend from US$0.115 to US$0.125 per common share starting with the second quarter of 2026, a change that may be relevant for investors focused on income.

Costamare’s share price has been firm over recent months, with a 90 day share price return of 9.23% and year to date share price return of 10.91%. The 1 year total shareholder return of 131.76% and 3 year total shareholder return of 213.74% point to strong longer term gains and suggest that momentum has been building around the stock as investors weigh the latest earnings dip against the planned dividend increase.

If the mix of income and price gains at Costamare has your attention, it can also be helpful to see what else the market is rewarding right now through 19 top founder-led companies

So with earnings cooling, a higher dividend on the way, and the stock already up strongly over 1 and 3 years, is Costamare still trading at an attractive valuation or is the market already pricing in future growth?

Most Popular Narrative: 3.4% Undervalued

Costamare's most followed valuation narrative places fair value at $18, a little above the last close of $17.39, framing the stock as slightly undervalued on that view.

The analysts have a consensus price target of $18.0 for Costamare based on their expectations of its future earnings growth, profit margins and other risk factors. In order for you to agree with the analysts, you'd need to believe that by 2029, revenues will be $775.0 million, earnings will come to $271.0 million, and it would be trading on a PE ratio of 11.1x, assuming you use a discount rate of 11.1%.

Want to see what sits behind that $18 fair value marker? The projections lean heavily on softer revenues, slimmer margins, and a richer future earnings multiple. Curious which assumptions really move the needle here?

Result: Fair Value of $18 (UNDERVALUED)

However, this depends on tight charter markets and near full fleet employment remaining in place, and it assumes that counterparty and regulatory risks do not erode margins faster than expected.

Another Angle: DCF Points The Other Way

There is a catch. While the analyst narrative frames Costamare as about 3.4% undervalued at a fair value of $18, the SWS DCF model puts fair value at $13.42. This means the current $17.39 price sits above that estimate and screens as overvalued on this approach.

When two methods disagree this clearly, it often comes down to which set of assumptions you find more realistic about future cash flows and required returns. It can also depend on whether you treat the gap as valuation risk you want to limit, or a trade off you are comfortable with for income and recent share price strength. 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 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment so split between recent earnings, dividend plans, and valuation signals, it can be useful to review the data yourself and decide on your next steps while the picture is still fresh, starting with 3 key rewards and 2 important warning signs

Looking for more investment ideas?

If Costamare has sharpened your focus on valuation and income, now is the moment to broaden your watchlist with other stocks that fit clear, data backed criteria.

• Target reliable income by zeroing in on companies that look built to support payouts, starting with the 12 dividend fortresses.
• Hunt for quality on sale by filtering for companies that pair strong fundamentals with appealing price tags through the 51 high quality undervalued stocks.
• Prioritize staying power by concentrating on businesses with healthier financial footing using the solid balance sheet and fundamentals stocks screener (44 results).

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.