EUROSEAS LTD (ESEA)
MHY235921357 - Common Stock
We assign a fundamental rating of 6 out of 10 to ESEA. ESEA was compared to 29 industry peers in the Marine Transportation industry. ESEA scores excellent on profitability, but there are some minor concerns on its financial health. ESEA may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make ESEA a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year ESEA was profitable.
In the past year ESEA had a positive cash flow from operations.
ESEA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ESEA had a positive operating cash flow.
1.2 Ratios
ESEA's Return On Assets of 41.04% is amongst the best of the industry. ESEA outperforms 96.55% of its industry peers.
ESEA has a better Return On Equity (68.46%) than 100.00% of its industry peers.
ESEA has a Return On Invested Capital of 34.73%. This is amongst the best in the industry. ESEA outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESEA is significantly above the industry average of 7.90%.
The last Return On Invested Capital (34.73%) for ESEA is above the 3 year average (25.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 41.04% | ||
| ROE | 68.46% | ||
| ROIC | 34.73% |
ROA(3y)26.15%
ROA(5y)15.73%
ROE(3y)53.75%
ROE(5y)31.62%
ROIC(3y)25.45%
ROIC(5y)16.91%
1.3 Margins
ESEA's Profit Margin of 61.51% is amongst the best of the industry. ESEA outperforms 96.55% of its industry peers.
In the last couple of years the Profit Margin of ESEA has grown nicely.
Looking at the Operating Margin, with a value of 58.36%, ESEA belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
ESEA's Operating Margin has improved in the last couple of years.
ESEA has a Gross Margin of 96.85%. This is amongst the best in the industry. ESEA outperforms 100.00% of its industry peers.
ESEA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.36% | ||
| PM (TTM) | 61.51% | ||
| GM | 96.85% |
OM growth 3Y65.2%
OM growth 5Y82.72%
PM growth 3Y113.78%
PM growth 5YN/A
GM growth 3Y-0.51%
GM growth 5Y1.99%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ESEA is creating value.
The number of shares outstanding for ESEA has been reduced compared to 1 year ago.
Compared to 5 years ago, ESEA has more shares outstanding
The debt/assets ratio for ESEA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.83 indicates that ESEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ESEA has a Altman-Z score of 2.83. This is amongst the best in the industry. ESEA outperforms 86.21% of its industry peers.
ESEA has a debt to FCF ratio of 25.97. This is a negative value and a sign of low solvency as ESEA would need 25.97 years to pay back of all of its debts.
ESEA has a Debt to FCF ratio (25.97) which is in line with its industry peers.
A Debt/Equity ratio of 0.44 indicates that ESEA is not too dependend on debt financing.
The Debt to Equity ratio of ESEA (0.44) is better than 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 25.97 | ||
| Altman-Z | 2.83 |
ROIC/WACC5.18
WACC6.7%
2.3 Liquidity
A Current Ratio of 1.34 indicates that ESEA should not have too much problems paying its short term obligations.
ESEA has a Current ratio (1.34) which is in line with its industry peers.
A Quick Ratio of 1.29 indicates that ESEA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.29, ESEA perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The earnings per share for ESEA have decreased by -1.53% in the last year.
The Earnings Per Share has been growing by 253.57% on average over the past years. This is a very strong growth
The Revenue has grown by 53.22% in the past year. This is a very strong growth!
The Revenue has been growing by 40.65% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-1.53%
EPS 3Y253.57%
EPS 5YN/A
EPS growth Q2Q32.86%
Revenue 1Y (TTM)53.22%
Revenue growth 3Y52.59%
Revenue growth 5Y40.65%
Revenue growth Q2Q205.26%
3.2 Future
The Earnings Per Share is expected to decrease by -48.42% on average over the next years. This is quite bad
Based on estimates for the next years, ESEA will show a decrease in Revenue. The Revenue will decrease by -4.99% on average per year.
EPS Next Y-31.4%
EPS Next 2Y-48.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.73%
Revenue Next 2Y-4.99%
Revenue Next 3YN/A
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 2.38, the valuation of ESEA can be described as very cheap.
Based on the Price/Earnings ratio, ESEA is valued cheaper than 93.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.06, ESEA is valued rather cheaply.
ESEA is valuated cheaply with a Price/Forward Earnings ratio of 3.32.
Based on the Price/Forward Earnings ratio, ESEA is valued cheaper than 86.21% of the companies in the same industry.
ESEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.38 | ||
| Fwd PE | 3.32 |
4.2 Price Multiples
ESEA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ESEA is cheaper than 86.21% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESEA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.71 | ||
| EV/EBITDA | 1.81 |
4.3 Compensation for Growth
The excellent profitability rating of ESEA may justify a higher PE ratio.
A cheap valuation may be justified as ESEA's earnings are expected to decrease with -48.42% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-48.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ESEA has a Yearly Dividend Yield of 7.07%, which is a nice return.
ESEA's Dividend Yield is rather good when compared to the industry average which is at 4.90. ESEA pays more dividend than 86.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ESEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
5.2 History
ESEA has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ESEA decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ESEA pays out 8.38% of its income as dividend. This is a sustainable payout ratio.
DP8.38%
EPS Next 2Y-48.42%
EPS Next 3YN/A
EUROSEAS LTD
NASDAQ:ESEA (5/2/2024, 7:00:01 PM)
35.22
+1.13 (+3.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap246.89M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.38 | ||
| Fwd PE | 3.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 41.04% | ||
| ROE | 68.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 58.36% | ||
| PM (TTM) | 61.51% | ||
| GM | 96.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.53%
EPS 3Y253.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y-31.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)53.22%
Revenue growth 3Y52.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y