EUROSEAS LTD (ESEA) Stock Fundamental Analysis
NASDAQ:ESEA - Nasdaq - MHY235921357 - Common Stock - Currency: USD
ESEA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Marine Transportation industry. ESEA has an excellent profitability rating, but there are some minor concerns on its financial health. ESEA may be a bit undervalued, certainly considering the very reasonable score on growth Finally ESEA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ESEA had positive earnings in the past year.
ESEA had a positive operating cash flow in the past year.
In the past 5 years ESEA has always been profitable.
ESEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESEA has a Return On Assets of 22.46%. This is amongst the best in the industry. ESEA outperforms 100.00% of its industry peers.
ESEA's Return On Equity of 36.58% is amongst the best of the industry. ESEA outperforms 96.97% of its industry peers.
The Return On Invested Capital of ESEA (19.93%) is better than 96.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESEA is significantly above the industry average of 7.92%.
The 3 year average ROIC (24.56%) for ESEA is well above the current ROIC(19.93%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.46% | ||
| ROE | 36.58% | ||
| ROIC | 19.93% |
ROA(3y)26.12%
ROA(5y)20.1%
ROE(3y)45.73%
ROE(5y)40.33%
ROIC(3y)24.56%
ROIC(5y)20%
1.3 Margins
ESEA's Profit Margin of 51.14% is amongst the best of the industry. ESEA outperforms 93.94% of its industry peers.
In the last couple of years the Profit Margin of ESEA has grown nicely.
ESEA has a better Operating Margin (51.89%) than 93.94% of its industry peers.
In the last couple of years the Operating Margin of ESEA has grown nicely.
Looking at the Gross Margin, with a value of 92.61%, ESEA belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
ESEA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.89% | ||
| PM (TTM) | 51.14% | ||
| GM | 92.61% |
OM growth 3Y3.33%
OM growth 5Y62.43%
PM growth 3Y5.47%
PM growth 5YN/A
GM growth 3Y-0.2%
GM growth 5Y0.38%
2. Health
2.1 Basic Checks
ESEA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ESEA has more shares outstanding than it did 1 year ago.
ESEA has more shares outstanding than it did 5 years ago.
ESEA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.32 indicates that ESEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.32, ESEA belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
ESEA has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
ESEA has a Debt to Equity ratio of 0.46. This is in the better half of the industry: ESEA outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.32 |
ROIC/WACC2.36
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.48 indicates that ESEA should not have too much problems paying its short term obligations.
ESEA has a Current ratio (1.48) which is comparable to the rest of the industry.
A Quick Ratio of 1.43 indicates that ESEA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.43, ESEA perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
ESEA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.93%.
Measured over the past years, ESEA shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.33% on average per year.
ESEA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.43%.
Measured over the past years, ESEA shows a very strong growth in Revenue. The Revenue has been growing by 39.71% on average per year.
EPS 1Y (TTM)0.93%
EPS 3Y33.33%
EPS 5YN/A
EPS Q2Q%41.35%
Revenue 1Y (TTM)12.43%
Revenue growth 3Y31.37%
Revenue growth 5Y39.71%
Sales Q2Q%24.11%
3.2 Future
ESEA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.45% yearly.
The Revenue is expected to grow by 1.78% on average over the next years.
EPS Next Y5.51%
EPS Next 2Y4.07%
EPS Next 3Y0.45%
EPS Next 5YN/A
Revenue Next Year3.95%
Revenue Next 2Y3.85%
Revenue Next 3Y1.78%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.05, the valuation of ESEA can be described as very cheap.
ESEA's Price/Earnings ratio is rather cheap when compared to the industry. ESEA is cheaper than 81.82% of the companies in the same industry.
ESEA is valuated cheaply when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 3.03 indicates a rather cheap valuation of ESEA.
90.91% of the companies in the same industry are more expensive than ESEA, based on the Price/Forward Earnings ratio.
ESEA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.05 | ||
| Fwd PE | 3.03 |
4.2 Price Multiples
78.79% of the companies in the same industry are more expensive than ESEA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ESEA may justify a higher PE ratio.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y4.07%
EPS Next 3Y0.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.81%, ESEA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.07, ESEA pays a bit more dividend than its industry peers.
ESEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
5.2 History
The dividend of ESEA is nicely growing with an annual growth rate of 53.86%!
ESEA has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ESEA decreased in the last 3 years.
Dividend Growth(5Y)53.86%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
12.68% of the earnings are spent on dividend by ESEA. This is a low number and sustainable payout ratio.
The dividend of ESEA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.68%
EPS Next 2Y4.07%
EPS Next 3Y0.45%
NASDAQ:ESEA (6/23/2025, 8:07:49 PM)
46.25
+1.47 (+3.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners5.96%
Inst Owner Change-22.76%
Ins Owners1.84%
Ins Owner ChangeN/A
Market Cap324.21M
Analysts82.22
Price Target57.12 (23.5%)
Short Float %1.04%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
Yearly Dividend2.4
Dividend Growth(5Y)53.86%
DP12.68%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.39%
Min EPS beat(2)-1.37%
Max EPS beat(2)8.16%
EPS beat(4)2
Avg EPS beat(4)10.46%
Min EPS beat(4)-9.76%
Max EPS beat(4)44.8%
EPS beat(8)5
Avg EPS beat(8)21.31%
EPS beat(12)9
Avg EPS beat(12)16.33%
EPS beat(16)11
Avg EPS beat(16)13.75%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)0.42%
Revenue beat(4)2
Avg Revenue beat(4)4.44%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)18.86%
Revenue beat(8)5
Avg Revenue beat(8)5%
Revenue beat(12)8
Avg Revenue beat(12)4.26%
Revenue beat(16)10
Avg Revenue beat(16)2.73%
PT rev (1m)4.35%
PT rev (3m)-7.69%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)-9.08%
EPS NY rev (1m)6.83%
EPS NY rev (3m)-2.78%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.05 | ||
| Fwd PE | 3.03 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 2.53 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 2.77 |
EPS(TTM)15.18
EY32.82%
EPS(NY)15.25
Fwd EY32.97%
FCF(TTM)-7.24
FCFYN/A
OCF(TTM)18.28
OCFY39.53%
SpS37.04
BVpS51.78
TBVpS51.78
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.46% | ||
| ROE | 36.58% | ||
| ROCE | 25.23% | ||
| ROIC | 19.93% | ||
| ROICexc | 23.12% | ||
| ROICexgc | 23.12% | ||
| OM | 51.89% | ||
| PM (TTM) | 51.14% | ||
| GM | 92.61% | ||
| FCFM | N/A |
ROA(3y)26.12%
ROA(5y)20.1%
ROE(3y)45.73%
ROE(5y)40.33%
ROIC(3y)24.56%
ROIC(5y)20%
ROICexc(3y)28.17%
ROICexc(5y)22.89%
ROICexgc(3y)28.17%
ROICexgc(5y)22.89%
ROCE(3y)31.08%
ROCE(5y)25.32%
ROICexcg growth 3Y-4.99%
ROICexcg growth 5Y67.54%
ROICexc growth 3Y-4.99%
ROICexc growth 5Y67.54%
OM growth 3Y3.33%
OM growth 5Y62.43%
PM growth 3Y5.47%
PM growth 5YN/A
GM growth 3Y-0.2%
GM growth 5Y0.38%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 678.57% | ||
| Cap/Sales | 68.92% | ||
| Interest Coverage | 13.52 | ||
| Cash Conversion | 79.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 2.32 |
F-Score4
WACC8.43%
ROIC/WACC2.36
Cap/Depr(3y)553.53%
Cap/Depr(5y)539.77%
Cap/Sales(3y)64.33%
Cap/Sales(5y)54.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.93%
EPS 3Y33.33%
EPS 5YN/A
EPS Q2Q%41.35%
EPS Next Y5.51%
EPS Next 2Y4.07%
EPS Next 3Y0.45%
EPS Next 5YN/A
Revenue 1Y (TTM)12.43%
Revenue growth 3Y31.37%
Revenue growth 5Y39.71%
Sales Q2Q%24.11%
Revenue Next Year3.95%
Revenue Next 2Y3.85%
Revenue Next 3Y1.78%
Revenue Next 5YN/A
EBIT growth 1Y20.16%
EBIT growth 3Y35.75%
EBIT growth 5Y126.92%
EBIT Next Year24.36%
EBIT Next 3Y12.39%
EBIT Next 5YN/A
FCF growth 1Y-386.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1.42%
OCF growth 3Y34.56%
OCF growth 5Y109.18%