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Euroseas Ltd (ESEA)
:ESEA
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Euroseas
(NASDAQ:ESEA)
Rating:83Outperform
Price Target:
$72.00
▲(16.34% Upside)
Positive Factors
Contract Coverage
ESEA's contract coverage is 96.6%, indicating strong demand and consistent utilization.
Dividend Increase
Quarterly dividend increased for the second time in six months.
Negative Factors
Revenue and EPS Estimates
Revenue and EPS estimates are reduced due to the spin-off of Euroholdings.
Trade Uncertainty
Uncertainty related to potential fees and tariff levels will support demand for smaller ships but may impact overall rates.
Euroseas (ESEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$433.64M
Dividend Yield4.04%
Average Volume (3M)47.51K
Price to Earnings (P/E)3.6
Beta (1Y)1.01
Revenue Growth7.73%
EPS Growth0.50%
CountryUS
Employees365
SectorIndustrials
Sector Strength73
IndustryMarine Shipping
Share Statistics
EPS (TTM)4.29
Shares Outstanding7,006,612
10 Day Avg. Volume42,665
30 Day Avg. Volume47,512
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.95
Enterprise Value/Gross Profit3.03
Enterprise Value/Ebitda2.69
Forecast
1Y Price Target
$73.00Price Target Upside17.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Euroseas Business Overview & Revenue Model
Company DescriptionEuroseas Ltd. is a leading provider of marine transportation services, primarily focused on the container shipping sector. The company operates a fleet of container vessels, which transport a variety of cargo across various global routes. Euroseas is known for its commitment to providing reliable and efficient shipping solutions, catering to a diverse customer base that includes shipping lines, freight forwarders, and trading companies. The company's operations contribute significantly to the global supply chain, facilitating international trade and commerce.
How the Company Makes MoneyEuroseas generates revenue primarily through the chartering of its container vessels to shipping lines and other logistics companies. The company earns money by charging customers a fee for the transportation of goods, which can be structured as time charters or voyage charters. Time charters provide a steady stream of income over a specified period, while voyage charters are paid per trip. Additionally, Euroseas may benefit from fluctuations in shipping rates based on demand and supply dynamics in the shipping market. The company's revenue model is also influenced by the operational efficiency of its fleet, fuel costs, and the overall health of the global economy. Strategic partnerships with freight companies and participation in long-term contracts can further stabilize and enhance its earnings.
Euroseas Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial results and strategic decisions such as increased dividends and successful chartering, indicating confidence in the company's operations and market position. However, there were challenges such as decreased average daily charter rates and increased interest costs.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Euroseas reported total net revenues of $57.2 million and a net income of $29.9 million or $4.29 per diluted share for Q2 2025. Adjusted EBITDA stood at $39.3 million.
Increase in Dividend
The company declared a quarterly dividend of $0.70 per share for Q2 2025, reflecting a 7.7% increase compared to the previous quarter's $0.65 per share.
Successful Chartering and Fleet Management
The motor vessel Emmanuel P was chartered for 3 years at $38,000 per day. Euroseas' fleet utilization rate remained high at 100% commercial and 99.9% operational.
ESG Commitment
Euroseas published its 2024 ESG report, highlighting positive developments in various KPIs.
Market Strength
1-year time charter rates increased by 8% in the feeder segment during Q2 2025, supported by limited vessel availability and sustained demand.
Negative Updates
Decrease in Average Daily Charter Rates
The average daily charter rate for Q2 2025 was $29,420 per day, down from $31,639 per day in the same period last year.
Increased Interest and Financing Costs
Total interest and other financing costs for Q2 2025 rose to $4 million from $2.1 million in Q2 2024.
Operational Challenges
Planned repairs for motor vessel Evridiki G and motor vessel EM Corfu resulted in off-hire periods of approximately 12.5 and 10 days, respectively.
Company Guidance
During the Euroseas second quarter 2025 conference call, the company reported strong financial results, including net revenues of $57.2 million and a net income of $29.9 million, translating to $4.29 per diluted share. Adjusted EBITDA was $39.3 million, and the company declared a $0.70 per share dividend, reflecting a 7.7% increase over the previous quarter, with an annualized yield of about 5.5%. Euroseas also highlighted its strategic fleet management, with 100% of 2025 available days secured at an average rate of $28,000 per day, and 67% of 2026 days locked in at $31,600 per day. Additionally, the company discussed its ongoing share repurchase program, having repurchased 463,000 shares for $10.5 million by August 2025. The call also touched on the sale of the motor vessel Marcos V for $50 million and the chartering of the motor vessel Emmanuel P at $38,000 per day.Euroseas Financial Statement Overview
Summary
Euroseas shows strong profitability with a high net profit margin and effective leverage management. However, challenges in revenue and free cash flow growth could impact future financial flexibility.Income Statement
Euroseas demonstrates strong profitability with a high net profit margin of 58.28% in TTM, despite a slight decline in revenue growth. The company maintains robust EBIT and EBITDA margins, indicating efficient operations and cost management. However, the recent negative revenue growth rate of -0.67% suggests potential challenges in maintaining top-line growth.85
Very Positive
Balance Sheet
The balance sheet reflects a healthy financial position with a manageable debt-to-equity ratio of 0.64 in TTM, showing a prudent approach to leverage. The return on equity remains strong at 36.97%, indicating effective use of equity capital. However, the equity ratio suggests room for improvement in asset financing through equity.78
Positive
Cash Flow
The cash flow statement reveals a concerning trend with a significant decline in free cash flow growth at -159.59% in TTM. Despite this, the operating cash flow to net income ratio remains strong at 2.51, indicating solid cash generation relative to net income. The negative free cash flow to net income ratio highlights potential cash flow management issues.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 221.03M | 212.90M | 189.36M | 182.69M | 93.89M | 53.30M |
| Gross Profit | 142.68M | 153.70M | 119.86M | 114.52M | 52.14M | 12.61M |
| EBITDA | 160.34M | 135.74M | 143.82M | 129.84M | 52.95M | 14.77M |
| Net Income | 118.80M | 112.78M | 114.55M | 106.24M | 42.96M | -83.72K |
Balance Sheet | ||||||
| Total Assets | 662.11M | 591.22M | 424.67M | 328.59M | 221.51M | 110.58M |
| Cash, Cash Equivalents and Short-Term Investments | 100.51M | 73.74M | 58.61M | 25.85M | 26.53M | 3.56M |
| Total Debt | 227.37M | 205.40M | 130.00M | 107.23M | 118.04M | 69.37M |
| Total Liabilities | 259.13M | 228.27M | 158.10M | 160.44M | 144.74M | 75.23M |
| Stockholders Equity | 402.98M | 362.95M | 266.58M | 168.16M | 76.77M | 35.36M |
Cash Flow | ||||||
| Free Cash Flow | 26.32M | -50.76M | 17.71M | 23.39M | -21.49M | 1.76M |
| Operating Cash Flow | 137.23M | 128.17M | 130.01M | 114.08M | 52.63M | 2.43M |
| Investing Cash Flow | -93.03M | -168.77M | -102.19M | -87.13M | -74.11M | 16.30M |
| Financing Cash Flow | -7.83M | 56.96M | 5.06M | -27.01M | 46.65M | -18.32M |
Euroseas Technical Analysis
Positive
61.89
Price Trends
53.45
Positive
45.13
Positive
36.53
Positive
Market Momentum
2.72
Positive
64.47
Neutral
38.92
Neutral
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 61.89 is above the 20-day moving average (MA) of 59.73, above the 50-day MA of 53.45, and above the 200-day MA of 36.53, indicating a bullish trend. The MACD of 2.72 indicates Positive momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 38.92 is Neutral, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $433.64M | 3.63 | 32.88% | 4.04% | 7.73% | 0.50% | |
79 Outperform | $274.75M | 4.35 | 9.68% | ― | 13.82% | -10.37% | |
73 Outperform | $455.32M | 10.43 | 6.58% | 4.49% | -9.65% | -46.46% | |
65 Neutral | $193.34M | 12.81 | 4.23% | 2.40% | -4.90% | 21.09% | |
64 Neutral | $10.75B | 15.69 | 7.62% | 2.01% | 2.75% | -15.14% | |
54 Neutral | $19.03M | 2.34 | -5.58% | ― | -29.15% | -118.42% | |
42 Neutral | $21.71M | 61.24 | -0.43% | ― | 17.92% | -131.47% |
* Industrials Sector Average
Performance Comparison
ESEA
Euroseas
61.89
29.95
93.77%
DSX
Diana Shipping
1.67
-0.53
-24.09%
GLBS
Globus Maritime
1.06
-0.42
-28.38%
SB
Safe Bulkers
4.45
0.08
1.83%
GASS
StealthGas
7.43
0.60
8.78%
CTRM
Castor Maritime
1.97
-2.35
-54.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.