Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.1%. Since the same quarter one year prior, revenues rose by 25.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, CMRE's share price has jumped by 32.02%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CMRE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for COSTAMARE INC is currently very high, coming in at 71.07%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.26% is above that of the industry average.
- Net operating cash flow has significantly increased by 54.43% to $53.87 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.21%.
- COSTAMARE INC's earnings per share declined by 30.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COSTAMARE INC increased its bottom line by earning $1.36 versus $1.20 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $1.36).
Costamare Inc. owns and charters containerships to liner companies worldwide. As of February 17, 2014, it had a fleet of 67 containerships with a total capacity of approximately 445,000 twenty foot equivalent units. The company was founded in 1975 and is based in Athens, Greece. Costamare has a market cap of $1.66 billion and is part of the services sector and transportation industry. Shares are up 19.5% year to date as of the close of trading on Friday.
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