Only one of our models could value this stock with confidence, so use it as a guide.
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Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, and Discounted cash flow.
ACCE opinionEuroDry Ltd. Common Shares (EDRY)
Fair value (2 models)
Not available
ACCE price target
$53.20
Rating
Not rated
Horizon
12 months
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Price used: $43.90 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
78
out of 100
Analysts
100% buy
3 covering
P/E
13.6x
forward 8.4x
1-year return
+261.6%
Dividend yield
0.00%
EuroDry Ltd. Common Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
EuroDry is a Greek dry bulk shipping company that owns and charters out a fleet of Panamax and Kamsarmax vessels, carrying commodities such as iron ore, coal and grain on time and spot charters. Its moat is limited, since a dry bulk carrier earns whatever the spot market pays, but its cost base and long-standing ship management relationships give it a lean operation that converts unusually high revenue into margin. Revenue grew 57.0% over the period, and with a 49.8% operating margin the business is earning far more per dollar of sales than a typical shipper, which is what a strong freight cycle does to a company with little debt. The question for a PM is whether that cycle is durable: the forward P/E of 8.4 against a trailing 16.2 implies the market expects earnings to fall back, and a 10.2% ROE says the equity is not yet compounding at a high rate. Worth a deeper look to test how much of the 57% growth reflects contract rates that will roll off, and what fleet renewal or dividend policy looks like through a normal cycle.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapse despite revenue growth
Revenue grew 57.0% year over year, yet earnings fell 94.3%. Net margin of 15.0% sits well below the operating margin of 49.8%, so the gap between operating and bottom-line results needs explaining before sizing a position.
moderate
Leverage and thin free cash flow
Debt to equity is 1.10 with free cash flow of $5M against a $130M market cap. Debt is material relative to cash generation, which leaves less room for a downturn in shipping rates.
moderate
Heavy insider concentration
Insiders hold 51.2% of shares and institutions only 6.6%. Thin institutional ownership means limited independent scrutiny and a float that may be easier to move on small trades.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-09-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 57.0% year over year, and the five-year average growth rate is 18.6% per year.
The stock trades at 7.4x forward earnings against a sector median of 23.6x, and the free cash flow yield is 4.2%.
Analysts rate all 3 covering firms Buy or Strong Buy, and the latest earnings beat expectations by 69.4%.
Why it could disappoint
Return on invested capital is negative at -1.8%, so the new revenue is not yet earning back the capital put into the business.
Debt to equity stands at 1.10, and the company generated only $5M of free cash flow over the last twelve months.
The share price implies yearly cash flow growth of +14.5% forever, well above the 5.1% risk-free rate used in the DCF.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 12, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Where EDRY's valuation models land
Price
$43.90
Model fair valueConfidence: medium
$55.66
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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