Costamare (CMRE), mcap=$1.4bn, price $11.23 vs $10.87

– Container ship lessor.
– Covid beneficiary was able to lock its charter agreements at very high rates for 90% of the fleet.
– Set to earn $500m+ a year for 2023-2025 from these agreements or more than the current market cap.
– Undervalued even assuming depressed earnings/rates after 2025.
– Better governance than the average shipping company with insiders owning 57% and buying in the open market and participating in $DRIP.
– Management fees have not been raised since 2017 despite inflation and overheads only amount to 4.3% of revenues.

– At the end of 2025 will have $2.4bn in cash and $1.9bn in debt.
– Post-2025 unlevered FCF of $305m with 15-year vessel life remaining.
– At 10-12x normalized earnings results in $3bn EV or $2.25bn discounted to today, that’s $18-$19/share.

Exp. gain: +70% to $18.5/share.

Full $CMRE write-up (free guest account required):

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