Costamare (CMRE) shares have moved without a specific headline catalyst. This puts the focus back on the fundamentals of its container and dry bulk shipping business and how recent price action lines up with those numbers.

Over the past quarter, Costamare’s share price has eased, with a 30 day share price return of down 5.5% and a 90 day share price return of down 15.9%, while the 1 year total shareholder return of 33.2% and 3 year total shareholder return of just over 2x suggest longer term holders have still seen strong gains.

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Costamare has given back some ground in recent months, even after a strong run over one and three years. Is the current share price already reflecting most of the good news, or is there still clear upside on offer in the valuation?

Most Popular Narrative: 31.2% Undervalued

Costamare's most followed valuation narrative points to a fair value of $21 against a last close of $14.44, which frames the recent pullback very differently.

The company has a strong pipeline of long-term contracted revenues ($2.5 billion with an average remaining charter duration of 3.2 years and 100% revenue days fixed for 2025, 75% for 2026), providing resilient and predictable cash flows that support stable earnings and dividend payments even in softer shipping markets.

Want to see what underpins that valuation gap? The narrative leans heavily on contracted revenue, margin assumptions and a future earnings multiple that sharply reshapes Costamare's earnings power story.

Result: Fair Value of $21 (UNDERVALUED)

However, Costamare’s story could look different if charter rates soften faster than analysts expect or if tighter environmental rules push operating costs higher than modeled.

Another View on Costamare’s Valuation

The first narrative argues Costamare is around 31.2% undervalued at $14.44 based on analyst assumptions about future earnings and a higher future P/E. A different lens tells a cooler story. The SWS DCF model estimates fair value at $12.96, which puts the stock above that level today and flags potential downside risk if cash flows track those inputs.

That gap between a higher earnings based fair value and a lower cash flow based estimate raises a simple question for you: Which set of assumptions feels closer to how Costamare will actually run its fleet and balance sheet over the next few years, and how much margin of safety do you really want at this price?

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 Costamare, the mix of optimism and concern is clear, so act now by checking the numbers yourself and weighing the 2 key rewards and 4 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.