EUROSEAS LTD (ESEA) Stock Fundamental Analysis
NASDAQ:ESEA - Nasdaq - MHY235921357 - Common Stock - Currency: USD
Taking everything into account, ESEA scores 7 out of 10 in our fundamental rating. 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 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
In the past year ESEA was profitable.
In the past year ESEA had a positive cash flow from operations.
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 23.07%. This is amongst the best in the industry. ESEA outperforms 97.22% of its industry peers.
ESEA has a better Return On Equity (39.68%) than 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
The Profit Margin of ESEA (55.60%) is better than 97.22% of its industry peers.
ESEA's Profit Margin has improved in the last couple of years.
ESEA's Operating Margin of 53.70% is amongst the best of the industry. ESEA outperforms 100.00% of its industry peers.
ESEA's Operating Margin has improved in the last couple of years.
ESEA has a better Gross Margin (94.59%) than 97.22% of its industry peers.
ESEA's Gross Margin has been stable in the last couple of years.
| 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
ESEA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ESEA has more shares outstanding
ESEA has more shares outstanding than it did 5 years ago.
ESEA has a worse debt/assets ratio than last year.
2.2 Solvency
ESEA has an Altman-Z score of 2.23. This is not the best score and indicates that ESEA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ESEA (2.23) is better 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 has a Debt to Equity ratio of 0.56. This is comparable 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 | 2.23 |
ROIC/WACC2.38
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.74 indicates that ESEA should not have too much problems paying its short term obligations.
The Current ratio of ESEA (1.74) is better than 66.67% of its industry peers.
A Quick Ratio of 1.68 indicates that ESEA should not have too much problems paying its short term obligations.
ESEA has a Quick ratio of 1.68. This is in the better half of the industry: ESEA outperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.68 |
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%.
ESEA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.33% yearly.
The Revenue has grown by 38.68% in the past year. This is a very strong growth!
The Revenue has been growing by 39.71% on average over the past years. This is a very strong growth!
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
ESEA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.45% yearly.
Based on estimates for the next years, ESEA will show a small growth in Revenue. The Revenue will grow by 1.78% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.21, 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 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESEA to the average of the S&P500 Index (27.30), we can say ESEA is valued rather cheaply.
ESEA is valuated cheaply with a Price/Forward Earnings ratio of 3.19.
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 36.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.21 | ||
| Fwd PE | 3.19 |
4.2 Price Multiples
80.56% 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 | 2.83 |
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)0.36
PEG (5Y)N/A
EPS Next 2Y4.07%
EPS Next 3Y0.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.50%, ESEA is a good candidate for dividend investing.
ESEA's Dividend Yield is a higher than the industry average which is at 7.47.
Compared to an average S&P500 Dividend Yield of 2.34, ESEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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
11.49% 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.
DP11.49%
EPS Next 2Y4.07%
EPS Next 3Y0.45%
NASDAQ:ESEA (7/16/2025, 8:00:28 PM)
48.67
+0.61 (+1.27%)
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 Cap341.18M
Analysts82.22
Price Target57.12 (17.36%)
Short Float %0.66%
Short Ratio0.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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)4.35%
PT rev (3m)0%
EPS NQ rev (1m)6.92%
EPS NQ rev (3m)6.81%
EPS NY rev (1m)10.39%
EPS NY rev (3m)10.39%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)2.28%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.21 | ||
| Fwd PE | 3.19 | ||
| P/S | 1.27 | ||
| P/FCF | N/A | ||
| P/OCF | 2.37 | ||
| P/B | 0.9 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 2.83 |
EPS(TTM)15.18
EY31.19%
EPS(NY)15.25
Fwd EY31.33%
FCF(TTM)-6.3
FCFYN/A
OCF(TTM)20.57
OCFY42.26%
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 | 2.23 |
F-Score5
WACC8.11%
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%