Euroseas (ESEA) AI Stock Analysis

• Market Cap: $423.69M
• Dividend Yield: 4.38%
• Average Volume (3M): 32.99K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 1.02
• Revenue Growth: 7.26%
• EPS Growth: 6.60%
• Country: US
• Employees: 365
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 4.25
• Shares Outstanding: 7,006,612
• 10 Day Avg. Volume: 37,857
• 30 Day Avg. Volume: 32,991
• PEG Ratio: -0.91
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -4.04
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: 3.22
• 1Y Price Target: $74.50
• Price Target Upside: 35.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 19.42
• Revenue Forecast (FY): $229.68M

• Rating: 77 Outperform
• Price Target: $65.00 ▲(18.01% Upside)

Euroseas' strong financial performance and attractive valuation are the primary drivers of its high score. While technical indicators are neutral, the company's strategic initiatives and solid earnings call contribute positively. However, market challenges and geopolitical risks temper the overall outlook.

Positive Factors

Fleet Expansion

The expansion of the fleet with new vessels enhances Euroseas' market position and operational capacity, supporting long-term growth.

Strong Charter Rates

High charter rates and full coverage ensure stable revenue streams, enhancing financial predictability and profitability.

Revenue Growth

Consistent revenue growth reflects strong demand for services and effective operational strategies, supporting long-term business health.

Negative Factors

Softening Freight Market

A softening freight market could pressure rates and profitability, challenging Euroseas' ability to maintain margins.

Potential Market Oversupply

Increased vessel supply may lead to rate declines, impacting revenue and profitability in the long term.

Geopolitical Uncertainties

Geopolitical uncertainties can affect global trade dynamics, potentially disrupting operations and impacting financial performance.

Euroseas Business Overview & Revenue Model

Company Description

Euroseas Ltd. is a shipping company that operates in the international maritime transportation sector, specializing in providing services for containerized cargo. The company owns and operates a fleet of container vessels that transport goods across major trade routes, catering to a diverse range of customers, including shipping lines and freight forwarders. Euroseas is focused on enhancing its fleet's operational efficiency and expanding its market presence in the global shipping industry.

How the Company Makes Money

Euroseas generates revenue primarily through the chartering of its container vessels. This includes both time charters, where vessels are leased for a specified period, and voyage charters, where vessels are hired for specific trips. The company earns income based on the charter rates negotiated with customers, which can fluctuate due to market conditions and demand for shipping services. Additionally, Euroseas may benefit from long-term contracts with shipping companies, providing a more stable revenue stream. The company also looks to optimize its fleet management and operational efficiencies to reduce costs and increase profitability. Factors such as global trade volumes, shipping rates, and fuel prices play a significant role in influencing its earnings potential.

Euroseas Financial Statement Overview

Summary

Euroseas demonstrates strong financial performance with robust revenue growth, high profitability margins, and solid cash flow generation. The balance sheet is stable with moderate leverage, though increasing debt requires monitoring.

Income Statement

Euroseas has demonstrated strong revenue growth with a TTM increase of 24.9%. The gross profit margin remains robust at 64.5%, and the net profit margin has improved to 54.0%, indicating efficient cost management. EBIT and EBITDA margins are also high, reflecting strong operational performance. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company has a healthy debt-to-equity ratio of 0.52, indicating moderate leverage. Return on equity is strong at 30.8%, showcasing effective use of equity capital. The equity ratio stands at 63.5%, reflecting a solid capital structure. However, the increase in total debt over the years requires monitoring to ensure it does not impact financial flexibility.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 3.10, indicating good cash generation relative to net income. Free cash flow has grown significantly by 53.8%, although the free cash flow to net income ratio is moderate at 29.3%. The company has improved its cash flow position, but the previous negative free cash flow highlights the need for continued cash management focus.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	223.79M	212.90M	189.36M	182.69M	93.89M	53.30M
Gross Profit	136.91M	127.33M	119.86M	114.52M	52.23M	12.61M
EBITDA	165.20M	149.76M	143.82M	129.84M	52.95M	14.77M
Net Income	120.86M	112.78M	114.55M	106.24M	42.96M	4.04M
Balance Sheet
Total Assets	674.77M	591.22M	424.67M	328.59M	221.51M	110.58M
Cash, Cash Equivalents and Short-Term Investments	106.09M	73.74M	58.61M	25.85M	26.53M	3.56M
Total Debt	222.09M	205.40M	130.00M	107.23M	118.04M	69.37M
Total Liabilities	246.69M	228.27M	158.10M	160.44M	144.74M	75.23M
Stockholders Equity	428.08M	362.95M	266.58M	168.16M	76.77M	35.36M
Cash Flow
Free Cash Flow	40.49M	-50.76M	17.71M	23.39M	-21.49M	1.76M
Operating Cash Flow	137.98M	128.17M	130.01M	114.08M	52.63M	2.43M
Investing Cash Flow	-79.61M	-168.77M	-102.19M	-87.13M	-74.11M	16.30M
Financing Cash Flow	-30.27M	56.96M	5.06M	-27.01M	46.65M	-18.32M

Euroseas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 55.08 is below the 20-day moving average (MA) of 59.11, below the 50-day MA of 58.14, and above the 200-day MA of 45.74, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 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	77 Outperform	$423.69M	3.49	31.33%	4.38%	7.26%	6.60%
GASS	76 Outperform	$251.82M	3.92	9.65%	―	12.23%	-5.22%
SB	72 Outperform	$535.13M	14.35	5.58%	4.07%	-13.74%	-59.37%
SHIP	70 Outperform	$221.49M	14.42	5.66%	4.98%	-8.99%	-68.66%
DSX	65 Neutral	$222.29M	11.78	4.91%	2.27%	-5.45%	139.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNK	61 Neutral	$707.54M	47.21	-0.78%	3.98%	-24.58%	-110.22%

Euroseas Corporate Events

Euroseas Ltd. Announces Strong Q3 2025 Results and New Vessel Charters

Euroseas Ltd. announced its financial results for the third quarter and nine-month period ending September 30, 2025, reporting significant net revenues and profits. The company declared a quarterly dividend and highlighted multi-year forward charters for five vessels, including four under construction, enhancing revenue visibility and charter coverage. These developments are expected to contribute substantial EBITDA over the charter periods, with contracted revenues extending into 2032. Despite challenges in the containership market, Euroseas maintains strong earnings and charter coverage, positioning itself favorably for future growth.

Euroseas Ltd. Reports Strong Financial Performance for First Half of 2025

Euroseas Ltd. reported its financial results for the six-month period ending June 30, 2025, showing an increase in time charter revenue to $116.8 million compared to $108.6 million in the same period of 2024. The company also experienced a rise in net income to $66.8 million from $60.8 million, reflecting improved operational efficiency and strategic management. The financial results indicate a strengthening position in the shipping industry, with a notable increase in total assets and shareholders’ equity, suggesting positive implications for stakeholders and potential growth opportunities.

Euroseas Ltd. Reports Strong Financial Performance for First Half of 2025

Euroseas Ltd. released its unaudited interim financial results for the six months ending June 30, 2025, showing a notable increase in net income to $66.8 million, up from $60.8 million in the same period of 2024. The company’s time charter revenue also rose, reflecting a strong operational performance. The financial data indicates improved cash flow from operating activities and a reduction in net cash used in investing activities, suggesting a strategic focus on enhancing liquidity and operational efficiency. The results underscore Euroseas’ strengthened market position and its commitment to optimizing financial performance, which is likely to have positive implications for stakeholders.

Euroseas Ltd. Secures Charter Extension for M/V Jonathan P

On September 12, 2025, Euroseas Ltd. announced a one-year charter contract extension for its feeder containership, M/V Jonathan P. The new charter, starting November 17, 2025, will be at a daily rate of $25,000, which is $5,000 higher than the current rate. This extension is expected to generate approximately $5.65 million in EBITDA over the minimum contracted period and will ensure full charter coverage for the company’s fleet for the rest of 2025 and about 70% coverage in 2026.