CMB.TECH: Valuation Implies Mid-Cycle - Reality Looks Stronger

High Alpha Professor239 FollowersFollow5ShareSavePlay(14min)CommentsSummaryCMB.TECH is now a highly leveraged play on freight rates, with over 80% spot exposure post-merger and tripled operating scale.Reported EPS is distorted by one-off Golden Ocean deal costs; normalized earnings and EBITDA provide a clearer view of CMBT's true earnings power.CMBT's valuation and investment case hinge on freight rate sensitivity, with current market cap implying mid-to-high cycle TCE rates ($35k–45k/day).Current geopolitical disruptions favor elevated freight rates, positioning CMBT for strong earnings and cash flow over the next 12–18 months.

Getty Images Introduction A quick look at CMB.TECH’s (CMBT) recent earnings data may confuse investors because, on the one hand, revenue has gone up and EBITDA is strong, while on the other hand, EPS has fallen sharply. CMBT mayThis article was written byHigh Alpha Professor239 FollowersFollowDubai-based investor focused on building a resilient, income-generating portfolio with a long-term growth mindset. My approach is primarily long-only, blending dividend-paying equities, REITs, and other income strategies with selective growth opportunities. I believe in disciplined, fundamentals-driven investing, prioritizing capital preservation while compounding returns over time. Originally from India.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.