U.S. markets close in 48 minutes
  • S&P 500

    4,178.05
    +65.55 (+1.59%)
     
  • Dow 30

    34,415.41
    +393.96 (+1.16%)
     
  • Nasdaq

    13,437.12
    +312.13 (+2.38%)
     
  • Russell 2000

    2,225.23
    +54.28 (+2.50%)
     
  • Crude Oil

    65.35
    +1.53 (+2.40%)
     
  • Gold

    1,842.10
    +18.10 (+0.99%)
     
  • Silver

    27.47
    +0.41 (+1.52%)
     
  • EUR/USD

    1.2146
    +0.0062 (+0.51%)
     
  • 10-Yr Bond

    1.6420
    -0.0260 (-1.56%)
     
  • GBP/USD

    1.4099
    +0.0047 (+0.33%)
     
  • USD/JPY

    109.3700
    -0.0640 (-0.06%)
     
  • BTC-USD

    50,253.32
    +1,884.63 (+3.90%)
     
  • CMC Crypto 200

    1,407.77
    +49.20 (+3.62%)
     
  • FTSE 100

    7,043.61
    +80.28 (+1.15%)
     
  • Nikkei 225

    28,084.47
    +636.46 (+2.32%)
     

Costamare (NYSE:CMRE) Share Prices Have Dropped 62% In The Last Five Years

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

While not a mind-blowing move, it is good to see that the Costamare Inc. (NYSE:CMRE) share price has gained 11% in the last three months. But over the last half decade, the stock has not performed well. After all, the share price is down 62% in that time, significantly under-performing the market.

Check out our latest analysis for Costamare

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

In the last half decade Costamare saw its share price fall as its EPS declined below zero. The recent extraordinary items contributed to this situation. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
earnings-per-share-growth

It might be well worthwhile taking a look at our free report on Costamare's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Costamare, it has a TSR of -45% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

While the broader market gained around 15% in the last year, Costamare shareholders lost 9.5% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. However, the loss over the last year isn't as bad as the 7.7% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Costamare is showing 4 warning signs in our investment analysis , and 2 of those don't sit too well with us...

Of course Costamare may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.