EUROSEAS LTD (ESEA) Stock Fundamental Analysis
NASDAQ:ESEA - Nasdaq - MHY235921357 - Common Stock - Currency: USD
Overall ESEA gets a fundamental rating of 6 out of 10. We evaluated ESEA against 29 industry peers in the Marine Transportation industry. While ESEA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ESEA. 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.
ESEA had positive earnings in each of the past 5 years.
In the past 5 years ESEA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.46%, ESEA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ESEA's Return On Equity of 36.58% is amongst the best of the industry. ESEA outperforms 96.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.93%, ESEA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ESEA had an Average Return On Invested Capital over the past 3 years of 24.56%. This is significantly above the industry average of 8.81%.
The last Return On Invested Capital (19.93%) for ESEA is well below the 3 year average (24.56%), which needs to be investigated, but indicates that ESEA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.46% | ||
| 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
Looking at the Profit Margin, with a value of 51.14%, ESEA belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
ESEA's Profit Margin has improved in the last couple of years.
ESEA has a better Operating Margin (51.89%) than 89.66% 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 96.55% of the companies in the same industry.
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 | 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-0.53%
GM growth 5Y0.19%
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
Compared to 5 years ago, ESEA has more shares outstanding
The debt/assets ratio for ESEA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.11 indicates that ESEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ESEA's Altman-Z score of 2.11 is fine compared to the rest of the industry. ESEA outperforms 75.86% of its industry peers.
ESEA has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
ESEA's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. ESEA outperforms 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.11 |
ROIC/WACC2.91
WACC6.84%
2.3 Liquidity
A Current Ratio of 1.48 indicates that ESEA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.48, ESEA is doing good in the industry, outperforming 62.07% of the companies in the same industry.
ESEA has a Quick Ratio of 1.43. 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 Quick ratio of 1.43. This is in the better half of the industry: ESEA outperforms 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
ESEA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.99%.
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.
The Revenue has grown by 37.10% 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)-8.99%
EPS 3Y33.33%
EPS 5YN/A
EPS Q2Q%-6.46%
Revenue 1Y (TTM)37.1%
Revenue growth 3Y31.37%
Revenue growth 5Y39.71%
Sales Q2Q%12.01%
3.2 Future
Based on estimates for the next years, ESEA will show a decrease in Earnings Per Share. The EPS will decrease by -1.70% on average per year.
Based on estimates for the next years, ESEA will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y8.53%
EPS Next 2Y0.39%
EPS Next 3Y-1.7%
EPS Next 5YN/A
Revenue Next Year3.46%
Revenue Next 2Y3.91%
Revenue Next 3Y2.76%
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
With a Price/Earnings ratio of 2.38, 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 75.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ESEA is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.19, the valuation of ESEA can be described as very cheap.
ESEA's Price/Forward Earnings ratio is rather cheap when compared to the industry. ESEA is cheaper than 96.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, ESEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.38 | ||
| Fwd PE | 2.19 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.27 |
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)0.28
PEG (5Y)N/A
EPS Next 2Y0.39%
EPS Next 3Y-1.7%
5. Dividend
5.1 Amount
ESEA has a Yearly Dividend Yield of 7.90%, which is a nice return.
Compared to an average industry Dividend Yield of 20.62, 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.9% |
5.2 History
On average, the dividend of ESEA grows each year by 53.86%, which is quite nice.
ESEA has paid a dividend for at least 10 years, which is a reliable track record.
ESEA has decreased its dividend recently.
Dividend Growth(5Y)53.86%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ESEA pays out 12.68% of its income as dividend. This is a sustainable payout ratio.
DP12.68%
EPS Next 2Y0.39%
EPS Next 3Y-1.7%
33.45
+0.54 (+1.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners7.27%
Inst Owner Change0.39%
Ins Owners2.09%
Ins Owner ChangeN/A
Market Cap234.48M
Analysts82.22
Price Target61.88 (84.99%)
Short Float %0.73%
Short Ratio0.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.9% |
Yearly Dividend2.4
Dividend Growth(5Y)53.86%
DP12.68%
Div Incr Years1
Div Non Decr Years1
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)1.55%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)3.51%
Revenue beat(4)2
Avg Revenue beat(4)5.22%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)18.86%
Revenue beat(8)5
Avg Revenue beat(8)5.39%
Revenue beat(12)8
Avg Revenue beat(12)4.52%
Revenue beat(16)10
Avg Revenue beat(16)2.92%
PT rev (1m)7.69%
PT rev (3m)-1.62%
EPS NQ rev (1m)1.3%
EPS NQ rev (3m)8.87%
EPS NY rev (1m)3.85%
EPS NY rev (3m)9.67%
Revenue NQ rev (1m)-1.35%
Revenue NQ rev (3m)-3.65%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.38 | ||
| Fwd PE | 2.19 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 1.83 | ||
| P/B | 0.65 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 2.27 |
EPS(TTM)14.08
EY42.09%
EPS(NY)15.28
Fwd EY45.68%
FCF(TTM)-7.24
FCFYN/A
OCF(TTM)18.28
OCFY54.66%
SpS37.04
BVpS51.78
TBVpS51.78
PEG (NY)0.28
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-0.53%
GM growth 5Y0.19%
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 | 250 | ||
| Cash Conversion | 79.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 2.11 |
F-Score4
WACC6.84%
ROIC/WACC2.91
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)-8.99%
EPS 3Y33.33%
EPS 5YN/A
EPS Q2Q%-6.46%
EPS Next Y8.53%
EPS Next 2Y0.39%
EPS Next 3Y-1.7%
EPS Next 5YN/A
Revenue 1Y (TTM)37.1%
Revenue growth 3Y31.37%
Revenue growth 5Y39.71%
Sales Q2Q%12.01%
Revenue Next Year3.46%
Revenue Next 2Y3.91%
Revenue Next 3Y2.76%
Revenue Next 5YN/A
EBIT growth 1Y20.16%
EBIT growth 3Y35.75%
EBIT growth 5Y126.92%
EBIT Next Year20.49%
EBIT Next 3Y12.19%
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%