EUROSEAS LTD (ESEA) Stock Fundamental Analysis
NASDAQ:ESEA - Nasdaq - MHY235921357 - Common Stock - Currency: USD
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 has a correct valuation and a medium growth rate.
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.
ESEA had positive earnings in 4 of the past 5 years.
ESEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 22.91%, ESEA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ESEA has a better Return On Equity (38.76%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.32%, ESEA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ESEA is significantly above the industry average of 8.54%.
The last Return On Invested Capital (20.32%) for ESEA is well below the 3 year average (25.45%), which needs to be investigated, but indicates that ESEA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.91% | ||
| ROE | 38.76% | ||
| ROIC | 20.32% |
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 has a better Profit Margin (52.12%) than 82.14% of its industry peers.
ESEA's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 53.17%, ESEA belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
ESEA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 92.60%, ESEA belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
ESEA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.17% | ||
| PM (TTM) | 52.12% | ||
| GM | 92.6% |
OM growth 3Y65.2%
OM growth 5Y82.72%
PM growth 3Y113.78%
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y2.14%
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 less shares outstanding
ESEA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ESEA has been reduced compared to a year ago.
2.2 Solvency
ESEA has an Altman-Z score of 2.03. 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 (2.03) is better than 71.43% of its industry peers.
ESEA has a Debt/Equity ratio of 0.53. This is a neutral value indicating ESEA is somewhat dependend on debt financing.
ESEA has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.03 |
ROIC/WACC3.2
WACC6.35%
2.3 Liquidity
ESEA has a Current Ratio of 1.65. This is a normal value and indicates that ESEA is financially healthy and should not expect problems in meeting its short term obligations.
ESEA has a Current ratio (1.65) which is comparable to the rest of the industry.
ESEA has a Quick Ratio of 1.59. This is a normal value and indicates that ESEA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.59, ESEA is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
ESEA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.11%.
Measured over the past years, ESEA shows a very strong growth in Earnings Per Share. The EPS has been growing by 253.57% on average per year.
Looking at the last year, ESEA shows a very strong growth in Revenue. The Revenue has grown by 39.40%.
Measured over the past years, ESEA shows a very strong growth in Revenue. The Revenue has been growing by 40.65% on average per year.
EPS 1Y (TTM)-3.11%
EPS 3Y253.57%
EPS 5YN/A
EPS Q2Q%-15.7%
Revenue 1Y (TTM)39.4%
Revenue growth 3Y52.59%
Revenue growth 5Y40.65%
Sales Q2Q%6.87%
3.2 Future
ESEA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.58% yearly.
The Revenue is expected to grow by 4.71% on average over the next years.
EPS Next Y-5.38%
EPS Next 2Y-2.63%
EPS Next 3Y-3.56%
EPS Next 5Y-3.58%
Revenue Next Year10.79%
Revenue Next 2Y8.92%
Revenue Next 3Y6.23%
Revenue Next 5Y4.71%
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 2.21, the valuation of ESEA can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of ESEA indicates a somewhat cheap valuation: ESEA is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ESEA to the average of the S&P500 Index (28.28), we can say ESEA is valued rather cheaply.
ESEA is valuated cheaply with a Price/Forward Earnings ratio of 2.15.
Based on the Price/Forward Earnings ratio, ESEA is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 91.29. ESEA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.21 | ||
| Fwd PE | 2.15 |
4.2 Price Multiples
82.14% 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 | 2.22 |
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 -3.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.63%
EPS Next 3Y-3.56%
5. Dividend
5.1 Amount
ESEA has a Yearly Dividend Yield of 7.48%, which is a nice return.
In the last 3 months the price of ESEA has falen by -23.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ESEA's Dividend Yield is a higher than the industry average which is at 12.52.
Compared to an average S&P500 Dividend Yield of 2.27, ESEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
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 12.06% of its income as dividend. This is a sustainable payout ratio.
DP12.06%
EPS Next 2Y-2.63%
EPS Next 3Y-3.56%
EUROSEAS LTD
NASDAQ:ESEA (1/29/2025, 8:21:24 PM)
After market: 32.0201 +0.44 (+1.39%)31.58
+0.66 (+2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners8.65%
Inst Owner Change-4.2%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap221.38M
Analysts82.22
Price Target62.9 (99.18%)
Short Float %0.57%
Short Ratio0.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
Yearly Dividend1.98
Dividend Growth(5Y)N/A
DP12.06%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.48%
Min EPS beat(2)8.16%
Max EPS beat(2)44.8%
EPS beat(4)2
Avg EPS beat(4)9.9%
Min EPS beat(4)-9.76%
Max EPS beat(4)44.8%
EPS beat(8)6
Avg EPS beat(8)21.72%
EPS beat(12)9
Avg EPS beat(12)16.03%
EPS beat(16)12
Avg EPS beat(16)19.84%
Revenue beat(2)1
Avg Revenue beat(2)9.23%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)18.86%
Revenue beat(4)1
Avg Revenue beat(4)3.76%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)18.86%
Revenue beat(8)5
Avg Revenue beat(8)5.09%
Revenue beat(12)8
Avg Revenue beat(12)4.25%
Revenue beat(16)10
Avg Revenue beat(16)2.94%
PT rev (1m)0%
PT rev (3m)2.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)48.89%
EPS NY rev (1m)0%
EPS NY rev (3m)8.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.93%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.21 | ||
| Fwd PE | 2.15 | ||
| P/S | 0.87 | ||
| P/FCF | N/A | ||
| P/OCF | 1.68 | ||
| P/B | 0.64 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 2.22 |
EPS(TTM)14.31
EY45.31%
EPS(NY)14.67
Fwd EY46.45%
FCF(TTM)-6.34
FCFYN/A
OCF(TTM)18.82
OCFY59.6%
SpS36.43
BVpS48.99
TBVpS48.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.91% | ||
| ROE | 38.76% | ||
| ROCE | 25.72% | ||
| ROIC | 20.32% | ||
| ROICexc | 23.81% | ||
| ROICexgc | 23.81% | ||
| OM | 53.17% | ||
| PM (TTM) | 52.12% | ||
| GM | 92.6% | ||
| FCFM | N/A |
ROA(3y)26.15%
ROA(5y)15.73%
ROE(3y)53.75%
ROE(5y)31.62%
ROIC(3y)25.45%
ROIC(5y)16.91%
ROICexc(3y)29.26%
ROICexc(5y)19.26%
ROICexgc(3y)29.26%
ROICexgc(5y)19.26%
ROCE(3y)32.21%
ROCE(5y)21.41%
ROICexcg growth 3Y58.58%
ROICexcg growth 5Y76.72%
ROICexc growth 3Y58.58%
ROICexc growth 5Y76.72%
OM growth 3Y65.2%
OM growth 5Y82.72%
PM growth 3Y113.78%
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y2.14%
F-Score3
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 707.3% | ||
| Cap/Sales | 69.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 2.03 |
F-Score3
WACC6.35%
ROIC/WACC3.2
Cap/Depr(3y)670.4%
Cap/Depr(5y)669.29%
Cap/Sales(3y)62.62%
Cap/Sales(5y)65.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.11%
EPS 3Y253.57%
EPS 5YN/A
EPS Q2Q%-15.7%
EPS Next Y-5.38%
EPS Next 2Y-2.63%
EPS Next 3Y-3.56%
EPS Next 5Y-3.58%
Revenue 1Y (TTM)39.4%
Revenue growth 3Y52.59%
Revenue growth 5Y40.65%
Sales Q2Q%6.87%
Revenue Next Year10.79%
Revenue Next 2Y8.92%
Revenue Next 3Y6.23%
Revenue Next 5Y4.71%
EBIT growth 1Y28.23%
EBIT growth 3Y152.07%
EBIT growth 5Y157%
EBIT Next Year22.28%
EBIT Next 3Y10.5%
EBIT Next 5Y10.34%
FCF growth 1Y-98.41%
FCF growth 3Y114.3%
FCF growth 5YN/A
OCF growth 1Y8.87%
OCF growth 3Y278.37%
OCF growth 5YN/A