EUROSEAS LTD (ESEA) Stock Fundamental Analysis
NASDAQ:ESEA - Nasdaq - MHY235921357 - Common Stock - Currency: USD
Overall ESEA gets a fundamental rating of 7 out of 10. We evaluated ESEA against 36 industry peers in the Marine Transportation industry. ESEA scores excellent on profitability, but 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. 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.
ESEA had positive earnings in each of the past 5 years.
ESEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ESEA (23.07%) is better than 97.22% of its industry peers.
ESEA has a better Return On Equity (39.68%) than 94.44% of its industry peers.
ESEA has a better Return On Invested Capital (19.32%) than 94.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESEA 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
Looking at the Profit Margin, with a value of 55.60%, ESEA belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of ESEA has grown nicely.
With an excellent Gross Margin value of 94.59%, ESEA belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
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
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
ESEA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ESEA is higher compared to a year ago.
2.2 Solvency
ESEA has an Altman-Z score of 2.24. 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.
With a decent Altman-Z score value of 2.24, ESEA is doing good in the industry, outperforming 77.78% of the companies in the same industry.
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 | 2.24 |
ROIC/WACC2.38
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.74 indicates that ESEA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.74, ESEA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
ESEA has a better Quick ratio (1.68) than 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%.
The Earnings Per Share has been growing by 33.33% on average over the past years. This is a very strong growth
ESEA shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.68%.
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
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.
ESEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.78% yearly.
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
ESEA is valuated cheaply with a Price/Earnings ratio of 3.17.
Compared to the rest of the industry, the Price/Earnings ratio of ESEA indicates a rather cheap valuation: ESEA is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. ESEA is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 3.15, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, ESEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.17 | ||
| Fwd PE | 3.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESEA is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.84 |
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.
ESEA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.35
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.
ESEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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.
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%
48.06
-0.47 (-0.97%)
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 Cap336.90M
Analysts82.22
Price Target57.12 (18.85%)
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 | 3.17 | ||
| Fwd PE | 3.15 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 2.34 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 2.84 |
EPS(TTM)15.18
EY31.59%
EPS(NY)15.25
Fwd EY31.73%
FCF(TTM)-6.3
FCFYN/A
OCF(TTM)20.57
OCFY42.8%
SpS38.41
BVpS53.82
TBVpS53.82
PEG (NY)0.35
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 | 2.24 |
F-Score5
WACC8.13%
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%