Euroseas (ESEA) AI Stock Analysis

• Market Cap: $363.57M
• Dividend Yield: 4.82%
• Average Volume (3M): 45.11K
• Price to Earnings (P/E): 2.7
• Beta (1Y): 1.01
• Revenue Growth: 14.62%
• EPS Growth: 21.99%
• Country: US
• Employees: 365
• Sector: Industrials
• Sector Strength: 94
• Industry: Marine Shipping
• EPS (TTM): 5.29
• Shares Outstanding: 7,006,612
• 10 Day Avg. Volume: 39,080
• 30 Day Avg. Volume: 45,111
• PEG Ratio: 0.18
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.71
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 0.80
• 1Y Price Target: $59.50
• Price Target Upside: 14.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 82 Outperform
• Price Target: $58.00 ▲(11.77%Upside)

Euroseas presents a promising investment opportunity with strong financial and technical performance. The valuation is compelling due to a low P/E ratio and attractive dividend yield. While macroeconomic uncertainties pose challenges, the company's strategic initiatives and robust profitability support a favorable outlook.

Positive Factors

Dividend Policy

The quarterly dividend of $0.65, raised from $0.60, remains intact and represents an annualized yield of 8.2%.

Fleet Utilization

ESEA's contract coverage for 2025 is 96.6%, which indicates a strong demand and utilization of its fleet.

Negative Factors

Potential Tariff Impact

Uncertainty related to potential fees and tariff levels will support demand for smaller ships but may impact overall rates.

Revenue and EPS Impact

Revenue and EPS estimates are reduced due to the spin-off of Euroholdings.

Euroseas Business Overview & Revenue Model

Company Description

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables. As of May 03, 2022, it had a fleet of 18 vessels, including 10 feeder and 8 intermediate containerships with a cargo capacity of approximately 58,871 twenty-foot equivalent unit (teu). The company was incorporated in 2005 and is based in Marousi, Greece.

How the Company Makes Money

Euroseas generates revenue primarily through the chartering of its fleet of dry bulk carriers and container ships. The company earns money by leasing its vessels to other shipping companies, who use them to transport goods across various international routes. These charter agreements can be on a time charter basis, where vessels are hired for a specific period, or on a voyage charter basis, where vessels are hired for a specific voyage. Key revenue streams include charter hire fees, which are affected by the prevailing market rates for shipping and the demand for maritime transportation services. The company's earnings are also influenced by factors such as fuel costs, vessel operating expenses, and global trade patterns.

Euroseas Financial Statement Overview

Summary

Euroseas demonstrates strong financial performance with impressive profitability metrics, including a net profit margin of 58.28% and revenue growth of 16.38%. The balance sheet is solid with a good debt-to-equity ratio, though cash flow challenges from high capital expenditures are notable.

Income Statement

Euroseas has shown a strong performance in its income statement metrics. The gross profit margin for TTM stands at 65.38%, while the net profit margin is an impressive 58.28%. Revenue growth over the past year is 16.38%, indicating strong top-line expansion. EBIT and EBITDA margins are also robust at 62.97% and 75.88%, respectively. The company demonstrates excellent profitability and growth, essential for maintaining competitive positioning in the marine shipping industry.

Balance Sheet

The balance sheet of Euroseas reflects a solid financial structure. The debt-to-equity ratio is 0.64, indicating a moderate level of leverage. Return on equity is very strong at 34.38%, showcasing effective use of shareholder funds. The equity ratio is 58.15%, suggesting a healthy capital structure with a significant portion of assets financed by equity. These metrics demonstrate a strong financial position, though the reliance on debt could pose risks in volatile markets.

Cash Flow

Euroseas displays a mixed picture in cash flow metrics. The free cash flow growth rate shows improvement with a less negative free cash flow compared to the previous period. The operating cash flow to net income ratio is 1.11, indicating that the company generates good cash flow from operations relative to its net income. However, the free cash flow to net income ratio is negative, highlighting challenges in converting accounting profits to cash due to high capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	212.90M	189.36M	182.69M	93.89M	53.30M
Gross Profit	153.70M	119.86M	114.52M	52.14M	12.61M
EBITDA	135.74M	143.82M	129.84M	52.95M	14.77M
Net Income	112.78M	114.55M	106.24M	42.96M	-83.72K
Balance Sheet
Total Assets	591.22M	424.67M	328.59M	221.51M	110.58M
Cash, Cash Equivalents and Short-Term Investments	73.74M	58.61M	25.85M	26.53M	3.56M
Total Debt	205.40M	130.00M	107.23M	118.04M	69.37M
Total Liabilities	228.27M	158.10M	160.44M	144.74M	75.23M
Stockholders Equity	362.95M	266.58M	168.16M	76.77M	35.36M
Cash Flow
Free Cash Flow	-50.76M	17.71M	23.39M	-21.49M	1.76M
Operating Cash Flow	128.17M	130.01M	114.08M	52.63M	2.43M
Investing Cash Flow	-168.77M	-102.19M	-87.13M	-74.11M	16.30M
Financing Cash Flow	56.96M	5.06M	-27.01M	46.65M	-18.32M

Euroseas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 51.89 is above the 20-day moving average (MA) of 47.96, above the 50-day MA of 43.43, and above the 200-day MA of 32.85, indicating a bullish trend. The MACD of 2.21 indicates Negative momentum. The RSI at 73.86 is Negative, neither overbought nor oversold. The STOCH value of 92.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESEA.

Euroseas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESEA	82 Outperform	$363.57M	2.75	39.30%	4.82%	14.62%	21.99%
SB	75 Outperform	$440.96M	6.44	9.82%	4.64%	-2.98%	-0.96%
GASS	75 Outperform	$251.82M	3.64	10.95%	―	14.08%	28.84%
Sector *	63 Neutral	kr60.99B	12.81	1.88%	2.31%	0.19%	-4.61%
CTRM	63 Neutral	$23.09M	2.64	3.07%	―	-32.07%	-9.50%
DSX	59 Neutral	$192.18M	24.27	2.79%	6.33%	-8.74%	-70.04%
GLBS	47 Neutral	$23.05M	61.24	-0.43%	―	17.92%	-131.47%