EUROSEAS LTD (ESEA) Stock Fundamental Analysis
NASDAQ:ESEA - Nasdaq - MHY235921357 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ESEA. ESEA was compared to 36 industry peers in the Marine Transportation industry. ESEA has an excellent profitability rating, but there are some minor concerns on its financial health. ESEA is valued quite cheap, while showing a decent growth score. This is a good combination! Finally ESEA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ESEA was profitable.
ESEA had a positive operating cash flow in the past year.
Each year in the past 5 years ESEA has been profitable.
Each year in the past 5 years ESEA had a positive operating cash flow.
1.2 Ratios
ESEA has a better Return On Assets (23.07%) than 97.22% of its industry peers.
ESEA has a Return On Equity of 39.68%. This is amongst the best in the industry. ESEA outperforms 94.44% of its industry peers.
The Return On Invested Capital of ESEA (19.32%) is better than 94.44% of its industry peers.
ESEA had an Average Return On Invested Capital over the past 3 years of 24.56%. This is significantly above the industry average of 9.15%.
The 3 year average ROIC (24.56%) for ESEA is well above the current ROIC(19.32%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.07% | ||
| ROE | 39.68% | ||
| ROIC | 19.32% |
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 has a better Profit Margin (55.60%) than 97.22% of its industry peers.
In the last couple of years the Profit Margin of ESEA has grown nicely.
ESEA's Operating Margin of 53.70% is amongst the best of the industry. ESEA outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of ESEA has grown nicely.
ESEA has a Gross Margin of 94.59%. This is amongst the best in the industry. ESEA outperforms 97.22% of its industry peers.
In the last couple of years the Gross Margin of ESEA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.7% | ||
| PM (TTM) | 55.6% | ||
| GM | 94.59% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ESEA is creating value.
Compared to 1 year ago, ESEA has more shares outstanding
The number of shares outstanding for ESEA has been increased compared to 5 years ago.
The debt/assets ratio for ESEA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.25 indicates that ESEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ESEA has a better Altman-Z score (2.25) than 77.78% of its industry peers.
ESEA has a Debt/Equity ratio of 0.56. This is a neutral value indicating ESEA is somewhat dependend on debt financing.
ESEA's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. ESEA outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.25 |
ROIC/WACC2.38
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.74 indicates that ESEA should not have too much problems paying its short term obligations.
ESEA has a Current ratio of 1.74. This is in the better half of the industry: ESEA outperforms 63.89% of its industry peers.
ESEA has a Quick Ratio of 1.68. This is a normal value and indicates that ESEA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ESEA (1.68) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.93% over the past year.
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 a strong growth in Revenue. In the last year, the Revenue has grown by 38.68%.
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)38.68%
Revenue growth 3Y31.37%
Revenue growth 5Y39.71%
Sales Q2Q%20.61%
3.2 Future
Based on estimates for the next years, ESEA will show a small growth in Earnings Per Share. The EPS will grow by 0.45% on average per year.
The Revenue is expected to grow by 1.78% on average over the next years.
EPS Next Y9.03%
EPS Next 2Y4.07%
EPS Next 3Y0.45%
EPS Next 5YN/A
Revenue Next Year6%
Revenue Next 2Y3.85%
Revenue Next 3Y1.78%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
ESEA is valuated cheaply with a Price/Earnings ratio of 3.26.
ESEA's Price/Earnings ratio is rather cheap when compared to the industry. ESEA is cheaper than 86.11% of the companies in the same industry.
ESEA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
Based on the Price/Forward Earnings ratio of 3.24, the valuation of ESEA can be described as very cheap.
Based on the Price/Forward Earnings ratio, ESEA is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
ESEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.26 | ||
| Fwd PE | 3.24 |
4.2 Price Multiples
ESEA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ESEA is cheaper than 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.88 |
4.3 Compensation for Growth
ESEA's 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)0.36
PEG (5Y)N/A
EPS Next 2Y4.07%
EPS Next 3Y0.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.25%, ESEA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.43, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
5.2 History
The dividend of ESEA is nicely growing with an annual growth rate of 53.86%!
ESEA has paid a dividend for at least 10 years, which is 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
11.49% of the earnings are spent on dividend by ESEA. This is a low number and sustainable payout ratio.
ESEA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.49%
EPS Next 2Y4.07%
EPS Next 3Y0.45%
NASDAQ:ESEA (7/18/2025, 8:00:01 PM)
49.42
-0.13 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners5.96%
Inst Owner Change0%
Ins Owners1.84%
Ins Owner ChangeN/A
Market Cap346.43M
Analysts82.22
Price Target59.5 (20.4%)
Short Float %0.66%
Short Ratio0.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
Yearly Dividend2.4
Dividend Growth(5Y)53.86%
DP11.49%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.51%
Min EPS beat(2)-1.37%
Max EPS beat(2)12.39%
EPS beat(4)3
Avg EPS beat(4)15.99%
Min EPS beat(4)-1.37%
Max EPS beat(4)44.8%
EPS beat(8)5
Avg EPS beat(8)21.51%
EPS beat(12)9
Avg EPS beat(12)16.33%
EPS beat(16)11
Avg EPS beat(16)12.95%
Revenue beat(2)2
Avg Revenue beat(2)2.41%
Min Revenue beat(2)0.42%
Max Revenue beat(2)4.4%
Revenue beat(4)3
Avg Revenue beat(4)5.82%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)18.86%
Revenue beat(8)5
Avg Revenue beat(8)5.27%
Revenue beat(12)8
Avg Revenue beat(12)4.3%
Revenue beat(16)11
Avg Revenue beat(16)3.27%
PT rev (1m)8.7%
PT rev (3m)4.17%
EPS NQ rev (1m)6.92%
EPS NQ rev (3m)6.81%
EPS NY rev (1m)3.33%
EPS NY rev (3m)10.39%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)1.97%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.26 | ||
| Fwd PE | 3.24 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 2.4 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 2.88 |
EPS(TTM)15.18
EY30.72%
EPS(NY)15.25
Fwd EY30.86%
FCF(TTM)-6.3
FCFYN/A
OCF(TTM)20.57
OCFY41.62%
SpS38.41
BVpS53.82
TBVpS53.82
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.07% | ||
| ROE | 39.68% | ||
| ROCE | 24.45% | ||
| ROIC | 19.32% | ||
| ROICexc | 22.71% | ||
| ROICexgc | 22.71% | ||
| OM | 53.7% | ||
| PM (TTM) | 55.6% | ||
| GM | 94.59% | ||
| 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-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 650.22% | ||
| Cap/Sales | 69.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 2.25 |
F-Score5
WACC8.12%
ROIC/WACC2.38
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 Y9.03%
EPS Next 2Y4.07%
EPS Next 3Y0.45%
EPS Next 5YN/A
Revenue 1Y (TTM)38.68%
Revenue growth 3Y31.37%
Revenue growth 5Y39.71%
Sales Q2Q%20.61%
Revenue Next Year6%
Revenue Next 2Y3.85%
Revenue Next 3Y1.78%
Revenue Next 5YN/A
EBIT growth 1Y33.9%
EBIT growth 3Y35.75%
EBIT growth 5Y126.92%
EBIT Next Year24.36%
EBIT Next 3Y12.39%
EBIT Next 5YN/A
FCF growth 1Y-109.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.66%
OCF growth 3Y34.56%
OCF growth 5Y109.18%