57.525 USD
+0.66 (+1.15%)
ESEA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 35 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. ESEA also has an excellent dividend rating. These ratings could make ESEA a good candidate for value and dividend investing.
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.
- In the past 5 years ESEA has always been profitable.
- Each year in the past 5 years ESEA had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.91%, ESEA belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- The Return On Equity of ESEA (28.23%) is better than 97.14% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 15.39%, ESEA belongs to the top of the industry, outperforming 97.14% 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 7.59%.
- The 3 year average ROIC (24.56%) for ESEA is well above the current ROIC(15.39%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.91% | ||
| ROE | 28.23% | ||
| ROIC | 15.39% |
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's Profit Margin of 54.01% is amongst the best of the industry. ESEA outperforms 91.43% of its industry peers.
- ESEA's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 54.86%, ESEA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- ESEA's Operating Margin has improved in the last couple of years.
- ESEA has a better Gross Margin (95.51%) than 97.14% 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 | 54.86% | ||
| PM (TTM) | 54.01% | ||
| GM | 95.51% |
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
- Compared to 5 years ago, ESEA has more shares outstanding
- ESEA has a worse debt/assets ratio than last year.
2.2 Solvency
- ESEA has an Altman-Z score of 2.46. 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.
- ESEA has a Altman-Z score of 2.46. This is in the better half of the industry: ESEA outperforms 74.29% of its industry peers.
- The Debt to FCF ratio of ESEA is 5.52, which is a neutral value as it means it would take ESEA, 5.52 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.52, ESEA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- A Debt/Equity ratio of 0.47 indicates that ESEA is not too dependend on debt financing.
- ESEA has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.92
WACC8.03%
2.3 Liquidity
- A Current Ratio of 3.59 indicates that ESEA has no problem at all paying its short term obligations.
- ESEA's Current ratio of 3.59 is fine compared to the rest of the industry. ESEA outperforms 77.14% of its industry peers.
- A Quick Ratio of 3.53 indicates that ESEA has no problem at all paying its short term obligations.
- ESEA's Quick ratio of 3.53 is fine compared to the rest of the industry. ESEA outperforms 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 3.53 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.46% 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.
- Looking at the last year, ESEA shows a very negative growth in Revenue. The Revenue has decreased by -12.36% in the last year.
- The Revenue has been growing by 39.71% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)8.46%
EPS 3Y33.33%
EPS 5YN/A
EPS Q2Q%7.91%
Revenue 1Y (TTM)-12.36%
Revenue growth 3Y31.37%
Revenue growth 5Y39.71%
Sales Q2Q%5.1%
3.2 Future
- The Earnings Per Share is expected to decrease by -4.82% on average over the next years.
- ESEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y19.64%
EPS Next 2Y9.43%
EPS Next 3Y-4.82%
EPS Next 5YN/A
Revenue Next Year8.8%
Revenue Next 2Y3.98%
Revenue Next 3Y3.05%
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
- Based on the Price/Earnings ratio of 3.71, the valuation of ESEA can be described as very cheap.
- 82.86% of the companies in the same industry are more expensive than ESEA, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ESEA to the average of the S&P500 Index (28.60), we can say ESEA is valued rather cheaply.
- With a Price/Forward Earnings ratio of 3.41, 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 94.29% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, ESEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.71 | ||
| Fwd PE | 3.41 |
4.2 Price Multiples
- ESEA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ESEA is cheaper than 77.14% of the companies in the same industry.
- 77.14% of the companies in the same industry are more expensive than ESEA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.03 | ||
| EV/EBITDA | 3.43 |
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.
- A cheap valuation may be justified as ESEA's earnings are expected to decrease with -4.82% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y9.43%
EPS Next 3Y-4.82%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.21%, ESEA is a good candidate for dividend investing.
- ESEA's Dividend Yield is a higher than the industry average which is at 5.57.
- Compared to an average S&P500 Dividend Yield of 1.82, ESEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
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
- ESEA pays out 14.76% of its income as dividend. This is a sustainable payout ratio.
DP14.76%
EPS Next 2Y9.43%
EPS Next 3Y-4.82%
EUROSEAS LTD / ESEA FAQ
What is the ChartMill fundamental rating of EUROSEAS LTD (ESEA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ESEA.
What is the valuation status of EUROSEAS LTD (ESEA) stock?
ChartMill assigns a valuation rating of 8 / 10 to EUROSEAS LTD (ESEA). This can be considered as Undervalued.
Can you provide the profitability details for EUROSEAS LTD?
EUROSEAS LTD (ESEA) has a profitability rating of 9 / 10.
What is the valuation of EUROSEAS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EUROSEAS LTD (ESEA) is 3.71 and the Price/Book (PB) ratio is 0.94.
Can you provide the dividend sustainability for ESEA stock?
The dividend rating of EUROSEAS LTD (ESEA) is 7 / 10 and the dividend payout ratio is 14.76%.