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Euroseas Ltd (ESEA)
NASDAQ:ESEA
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Euroseas
(NASDAQ:ESEA)
81Outperform
Positive Factors
Dividends
The dividend increase demonstrates the benefit of 85% containership contract coverage in 2025.
Earnings
Euroseas Ltd reported 3Q24 results with revenue and EPS exceeding expectations.
Negative Factors
Interest Expense
3Q24 EPS declined year over year due to an 83.3% increase in interest expense.
Euroseas (ESEA) vs. S&P 500 (SPY)
Market Cap
$228.97M
Dividend Yield7.33%
Average Volume (3M)35.05K
Price to Earnings (P/E)2.0
Beta (1Y)0.83
Revenue Growth13.90%
EPS Growth3.21%
CountryUS
Employees429
SectorIndustrials
Sector Strength69
IndustryTransportation
Share Statistics
EPS (TTM)16.15
Shares Outstanding7,047,537
10 Day Avg. Volume45,875
30 Day Avg. Volume35,050
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)N/A
Price to Sales (P/S)1.18
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$56.00Price Target Upside68.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Euroseas Business Overview & Revenue Model
Company DescriptionEuroseas Ltd. is a holding company, which engages in the provision of ocean-going transportation services. It operates containerships that transport dry and refrigerated containerized cargoes, mainly including manufactured products, and perishables. The firm also owns drybulk carriers that transport major bulks such as iron ore, coal and grains, and minor bulks such as bauxite, phosphate and fertilizers. The company was founded on May 5, 2005 and is headquartered in Athens, Greece.
How the Company Makes MoneyEuroseas makes money primarily through the chartering of its vessels to customers, including shipping companies and other entities involved in the transportation of goods. The company earns revenue from time charters, whereby vessels are leased out for a fixed period at a pre-determined daily rate, and voyage charters, where ships are contracted for specific voyages. Euroseas' earnings are influenced by the global shipping market dynamics, demand for shipping capacity, and vessel operating expenses. The company's profitability is also affected by factors such as fuel prices, port fees, and maintenance costs. Additionally, Euroseas may form strategic partnerships or alliances to optimize fleet utilization and negotiate favorable charter agreements.
Euroseas Financial Statement Overview
Summary
Euroseas shows robust financial health with strong revenue growth and high profitability margins. The balance sheet is solid with moderate leverage, but increasing liabilities and negative free cash flow require attention.Income Statement
Euroseas' income statement shows strong profitability with a Gross Profit Margin of 60.6% and an impressive Net Profit Margin of 54.2% for TTM (Trailing-Twelve-Months). Revenue growth is consistent, increasing from $189.4M to $208.6M, indicating a robust growth trajectory. The EBIT and EBITDA margins of 57.5% and 70.8% respectively reflect operational efficiency. However, the slight decrease in net income compared to the previous year suggests potential pressure on profitability.85
Very Positive
Balance Sheet
The balance sheet of Euroseas reflects a healthy equity base with an Equity Ratio of 59.1%, indicating financial stability. The Debt-to-Equity Ratio of 0.64 demonstrates moderate leverage, enhancing the company's ability to manage its debt. Return on Equity is high at 32.9%, showcasing effective utilization of shareholder funds. However, the increase in total liabilities from $158.1M to $237.5M could pose a risk if not managed properly.78
Positive
Cash Flow
Euroseas' cash flow statement reveals strong operating cash flow to net income ratio of 1.17, indicating efficient cash generation from operations. However, the Free Cash Flow has turned negative at -$44.4M, primarily due to significant capital expenditures, which could strain liquidity if not offset by operating cash inflows. The negative Free Cash Flow Growth Rate compared to the previous year highlights a potential area of concern.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 208.65M | 189.36M | 182.69M | 93.89M | 53.30M | 40.02M | Gross Profit |
| 126.38M | 119.86M | 114.52M | 52.14M | 12.61M | 8.09M | EBIT |
| 120.00M | 119.43M | 106.64M | 45.65M | 6.98M | 1.98M | EBITDA |
| 147.66M | 143.82M | 129.84M | 52.95M | 14.77M | 5.92M | Net Income Common Stockholders |
| 113.10M | 114.55M | 106.24M | 42.96M | -83.72K | -5.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 6.96M | 58.61M | 25.85M | 26.53M | 3.56M | 985.42K | Total Assets |
| 66.95M | 424.67M | 328.59M | 221.51M | 110.58M | 126.86M | Total Debt |
| 36.59M | 130.00M | 107.23M | 118.04M | 69.37M | 89.48M | Net Debt |
| 29.63M | 71.39M | 81.39M | 91.51M | 65.81M | 88.50M | Total Liabilities |
| 44.38M | 158.10M | 160.44M | 144.74M | 75.23M | 98.75M | Stockholders Equity |
| 22.58M | 266.58M | 168.16M | 76.77M | 35.36M | 28.11M |
| Cash Flow | Free Cash Flow | ||||
| -44.44M | 17.71M | 23.39M | -21.49M | 1.76M | -52.58M | Operating Cash Flow |
| 131.95M | 130.01M | 114.08M | 52.63M | 2.43M | 3.14M | Investing Cash Flow |
| -166.25M | -102.19M | -87.13M | -74.11M | 16.30M | -55.72M | Financing Cash Flow |
| 64.23M | 5.06M | -27.01M | 46.65M | -18.32M | 45.30M |
Euroseas Technical Analysis
Positive
33.22
Price Trends
32.89
Positive
35.59
Negative
37.44
Negative
Market Momentum
-0.06
Positive
52.40
Neutral
19.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESEA, the sentiment is Positive. The current price of 33.22 is above the 20-day moving average (MA) of 33.04, above the 50-day MA of 32.89, and below the 200-day MA of 37.44, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 19.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESEA.
Euroseas Risk Analysis
Euroseas disclosed 87 risk factors in its most recent earnings report. Euroseas reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Euroseas Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $228.97M | 2.02 | 35.83% | 7.33% | 13.90% | 3.21% | |
77 Outperform | $1.88B | 5.64 | 14.71% | 15.83% | 33.31% | 62.94% | |
74 Outperform | $1.50B | 3.08 | 15.68% | 4.11% | 6.00% | -9.89% | |
73 Outperform | $1.56B | 7.37 | 11.68% | 15.42% | 14.81% | 96.97% | |
69 Neutral | $1.15B | 3.22 | 12.41% | 0.52% | -1.61% | -3.33% | |
64 Neutral | $1.22B | 4.17 | 13.07% | 4.53% | 37.10% | -17.36% | |
62 Neutral | $8.17B | 12.83 | 0.26% | 3.07% | 3.83% | -16.44% |
* Industrials Sector Average
Performance Comparison
ESEA
Euroseas
33.22
-1.26
-3.65%
CMRE
Costamare
10.44
-0.58
-5.26%
DAC
Danaos
80.87
12.70
18.63%
NMM
Navios Maritime Partners
39.71
-2.61
-6.17%
SBLK
Star Bulk Carriers
16.50
-5.35
-24.49%
GOGL
Golden Ocean Group
8.10
-3.81
-31.99%
Euroseas Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -0.24% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with increased revenue, income, and dividends. Fleet expansion and strong charter coverage were also positive aspects. However, challenges remain, including slight declines in charter rates and geopolitical and economic uncertainties.Highlights
Revenue and Income Growth
Total net revenues for Q4 2024 were $53.3 million, representing an 8.7% increase over the previous year, with a net income of $24.4 million.
Dividend Increase
The Board of Directors declared a quarterly dividend of $0.65 per common share for Q4 2024, a $0.05 increase over the previous year.
Strong Charter Coverage
Euroseas secured strong charter coverage with approximately 85% of the fleet fixed for 2025 and about 49% for 2026.
Fleet Expansion
Euroseas took delivery of two new eco-friendly feeder containerships and commenced charters at a daily rate of $32,000 each.
Lowlights
Slight Decline in Charter Rates
Containership charter rates experienced a slight decline in Q4 2024, except for larger segments where they held steady.
Geopolitical and Economic Challenges
Global economic growth projections remain underwhelming with geopolitical risks and trade tensions posing challenges to the market outlook.
Lower Average Time Charter Rates
Despite an increase in the number of vessels, lower average time charter rates were earned in 2024 compared to 2023.
Company Guidance
During the Euroseas Q4 2024 conference call, the company reported total net revenues of $53.3 million, an increase from the previous year's fourth quarter. The net income was $24.4 million, with adjusted net income at $23.3 million. The adjusted EBITDA for the quarter stood at $32.8 million. Euroseas declared a quarterly dividend of $0.65 per common share, with an annualized dividend yield of approximately 7.8%. The company has repurchased 425,000 shares since May 2022, totaling $9.25 million, and will distribute shares of Euroholdings Ltd., representing about 5% of their NAV, to shareholders. The fleet, consisting of 24 vessels with a capacity of nearly 71,000 TEU and an average age of 13.5 years, saw no idle periods except for one vessel undergoing maintenance. The global economic outlook, as projected by the IMF, remains stable, with the US growth forecast at 2.7% and emerging markets like India driving global growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.