The average target price of ECO is 35 and suggests 68% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 35.0. This translates into 68% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 35.0. This suggests 68% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Okeanis Eco Tankers Corp., a tanker company, engages in the ownership, chartering and operation of oil tanker vessels worldwide. The company also provides various shipping services, such as technical support, maintenance, and insurance consulting services. It operates a fleet of six modern scrubber-fitted Suezmax tankers and eight modern scrubber-fitted VLCC tankers. The company was incorporated in 2018 and is based in Piraeus, Greece.

Greece

Okeanis Eco Tankers Corp.

Industrials

The company pays dividends most of the time. It has paid dividends in almost every one of the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has been outstanding and can be rated excellent compared to its peers. At the same time, the average five-year yield has been significantly higher and exceeded nearly all its peers. On average, the company pays dividends every four months. 

ECO reported revenue of USD 393mn in the last 12 months, down 5% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 25% from FY23 to USD 3.38. Market expects EPS to reach USD 3.35 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 27ppts and its growth decelerated by 0ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported very strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 52.8% in the last 12 months, a decline from 59.5% in FY23. 

Historically, ECO has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 27.7%, down from 35.2% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 9.8% in the last 12 months, a decrease from 12.6% in FY23. The market analysts predict that RoA will be 9.8% in FY24, again stronger than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to 10.7%, above the peers. The consensus estimate for FY24 for RoCE is 15.3%, again ahead of the peers. 

Okeanis Eco Tankers Corp. reported a return on equity (RoE) of 26.6% in the last 12 months, down from 35.0% in FY23. The market consensus projects an RoE of 26.4% in FY24, again ahead of its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.5 in the past several years. This ratio implies a good shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

ECO has above average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually quite stable and remains mildly favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, robust profitability, and solid return on capital, among the positive credit factors. Among the negative credit factors and we point to excessive margin volatility, an unfavourable capital structure.

In highly turbulent market conditions, ECO is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, ECO is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to average. 

Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITDA, reasonably priced on P/FCF. 

Okeanis Eco Tankers Corp.

$ 20.17

6

Okeanis Eco Tankers Corp.

$ 20.17

6

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 20.17

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