Costamare earnings put recent share performance in context

Costamare (CMRE) has just released second quarter 2026 results. This gives investors fresh data on how the containership and dry bulk operator is performing after a mixed period for the stock.

The company reported Q2 revenue of US$209.19 million compared with US$217.9 million a year earlier, with net income of US$82.65 million versus US$88.69 million for the same period.

Despite the softer Q2 result, Costamare’s recent price action has been mixed, with the share price up 9.03% over the past month but down 7.70% over 90 days. The 1 year total shareholder return of 65.95% and 5 year total shareholder return of 140.70% highlight how strong longer term holders have fared.

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With Costamare shares rising over the past month despite softer recent earnings, the balance between opportunity and risk looks less obvious. Do current valuations still offer an appealing entry point for new buyers?

Most Popular Narrative: 27% Undervalued

The most followed narrative currently puts Costamare’s fair value at $21, compared with a last close of $15.34, which frames the recent Q2 move in a different light.

The analysts have a consensus price target of $21.0 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 $796.4 million, earnings will come to $279.5 million, and it would be trading on a PE ratio of 12.6x, assuming you use a discount rate of 11.0%.

Want to see what sits behind that $21 fair value for Costamare? The story hinges on shrinking revenues, lower margins and a meaningfully higher future earnings multiple.

The narrative uses an 11.01% discount rate and assumes both revenue and earnings drift down over time, yet still supports a richer valuation multiple by the end of the forecast period. That mix of softer fundamentals and a higher implied P/E is what sets this framework apart and is worth comparing with your own expectations for Costamare’s shipping exposure and capital allocation choices.

Result: Fair Value of $21 (UNDERVALUED)

However, the Costamare story could look very different if charter markets soften faster than analysts expect, or if environmental compliance costs rise more quickly than modeled.

Another View on Costamare’s Valuation

The first narrative framed Costamare as undervalued around a fair value of $21 based on analyst assumptions for 2029 earnings and a higher future P/E. A second lens comes from the SWS DCF model, which puts the value of future cash flows closer to $12.90 per share. That points to Costamare trading above this DCF estimate rather than below it.

This split between a higher analyst fair value and a lower DCF output highlights how sensitive Costamare’s valuation is to long term cash flow and discount rate assumptions. The question is which set of assumptions you feel better reflects the risks around earnings declining over the next few years.

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 49 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 Costamare, the mix of risks and potential rewards creates a divided outlook that is likely to attract attention soon. If you want to act quickly and shape your own view, start by weighing the 2 key rewards and 3 important warning signs

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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.