EuroDry Ltd. Common Shares (EDRY)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I ask whether this is a durable business at a sensible price. EuroDry is a small drybulk owner operating 11 vessels that carry iron ore, coal, grain, bauxite, phosphate and fertilizers. Shipping is inherently cyclical; rates are set by global trade, fleet supply, fuel and geopolitics. There is little pricing power or moat. In the second quarter of 2026, revenue was $17.7 million, net income $6.6 million, and net margin 37.21%. That is impressive, but it reflects a strong freight moment, not a franchise. The balance sheet deserves caution. Debt-to-equity is 0.89, and FairStock's Altman Z-Score is 0.82, a low reading that signals elevated balance-sheet risk. Still, liquidity appears decent: trailing free cash flow was $17.3 million, a 28.9% FCF yield on the $59.9 million market cap as of the 2026-10-13 close. Piotroski is 8/9, another positive. Returns are moderate: ROE 10.23%, ROCE 4.95%. At $53.23, FairStock's P/E is 15.98, P/B 1.52, and EV/EBITDA 4.56. Graham Number is $51.15, leaving a -4.07% margin of safety, so the price is roughly at Graham's fair-value estimate, not a bargain. PEG is 0.15, but that depends on volatile earnings. No Lynch category is assigned because only 0 years of filed results exist and 3 are needed. FairStock score is 58/100. I would want evidence that cash flow is through-cycle and debt is reduced. The stock ranges from $11.94 to $73.07 in 52 weeks, so the market knows this is a boom-bust name. Quality is not proven; price is fair at best.

In plain English: EuroDry owns drybulk ships that carry iron ore, coal, grain and other bulk cargoes around the world. In the second quarter of 2026, it earned $17.7 million of revenue and $6.6 million of net income, which looks profitable, but it carries high debt and has a weak balance-sheet risk reading. At the 2026-10-13 close of $53.23, the price looks close to fair versus the numbers shown, not obviously cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer