Castor Maritime Inc. (NASDAQ: CTRM)

Sector: Industrials Industry: Marine Shipping CIK: 0001720161
Market Cap 21.16 Mn
P/B 0.04
P/E -1.67
P/S 0.28
ROIC (Qtr) -2.28
Div Yield % 0.00
Rev 1y % (Qtr) 56.32
Total Debt (Qtr) 18.96 Mn
Debt/Equity (Qtr) 0.04
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About

Investment thesis

Bull case

  • Strong operating cash flow of 7.94M provides robust 0.42x coverage of total debt 18.96M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 123.83M provide 45.58x coverage of short-term debt 2.72M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 748.46M provides 39.47x coverage of total debt 18.96M, indicating robust asset backing and low credit risk.
  • Long-term investments of 297.14M provide solid 18.29x coverage of long-term debt 16.25M, indicating strategic financial planning.
  • Retained earnings of 227.77M provide full 14.02x coverage of long-term debt 16.25M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 7.94M barely covers its investment activities of (172.48M), with a coverage ratio of -0.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 27.25M provides weak coverage of capital expenditures of (19.31M), with a -1.41 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (25.46M) show weak coverage of depreciation charges of 13.97M, with a -1.82 ratio indicating high capital intensity and potential reinvestment needs.
  • Long-term investments of 297.14M represent a high 1.87x of fixed assets 158.83M, indicating potential overexposure to financial assets versus operational capabilities.
  • High depreciation of 13.97M relative to operating cash flow of 7.94M, which is 1.76x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Marine Shipping
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KEX Kirby Corp 7.05 Bn 19.89 2.10 1.13 Bn
2 MATX Matson, Inc. 6.79 Bn 74.01 4.43 0.72 Bn
3 ZIM ZIM Integrated Shipping Services Ltd. 3.36 Bn 3.35 0.44 5.66 Bn
4 HAFN Hafnia Ltd 3.35 Bn 10.82 1.51 0.89 Bn
5 BWLP BW LPG Ltd 2.38 Bn 10.97 0.67 1.09 Bn
6 SBLK Star Bulk Carriers Corp. 2.37 Bn 245.30 3.42 1.23 Bn
7 CMRE Costamare Inc. 2.05 Bn 6.81 1.69 1.58 Bn
8 DAC Danaos Corp 1.99 Bn 4.27 1.93 0.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 0.60
EV to Cash from Ops. EV/CFO -0.27 6.07
EV to Debt EV to Debt -0.11 60.45
EV to EBIT EV/EBIT 0.08 4.74
EV to EBITDA EV/EBITDA -0.90 5.76
EV to Free Cash Flow [EV/FCF] EV/FCF -0.08 5.00
EV to Market Cap EV to Market Cap -0.10 29.59
EV to Revenue EV/Rev -0.03 2.00
Price to Book Value [P/B] P/B 0.04 1.07
Price to Earnings [P/E] P/E -1.67 13.80
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.47
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 68.67
Dividend per Basic Share Div per Share (Qtr) 0.00 1.18
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 105.16
Interest Coverage Int. cover (Qtr) -9.85 -7.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -82.38 -33.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -27.81 25.96
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 9.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -134.79 -27.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -97.34 -36.36
EBIT Growth (1y) % EBIT 1y % (Qtr) -134.48 -26.39
EBT Growth (1y) % EBT 1y % (Qtr) -138.30 -36.07
EPS Growth (1y) % EPS 1y % (Qtr) -118.36 -30.68
FCF Growth (1y) % FCF 1y % (Qtr) -82.10 14.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -21.33 -7.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.10 0.63
Cash Payout Ratio Cash Payout Ratio 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 2.69 1.33
Current Ratio Curr Ratio (Qtr) 5.61 2.15
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.73
Interest Cover Ratio Int Coverage (Qtr) -9.85 -7.10
Times Interest Earned Times Interest Earned (Qtr) -9.85 -7.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -15.20 27.36
EBIT Margin % EBIT Margin % (Qtr) -33.76 17.95
EBT Margin % EBT Margin % (Qtr) -37.18 10.77
Gross Margin % Gross Margin % (Qtr) 44.20 37.00
Net Profit Margin % Net Margin % (Qtr) -16.80 9.28