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Euroseas
(NASDAQ:ESEA)
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Rating:76Outperform
Price Target:
$89.00
▲(15.60% Upside)
Action:Reiterated
Date:05/23/26
The score is driven primarily by strong financial performance and an exceptionally attractive valuation (very low P/E plus a solid dividend yield). The earnings call supports the thesis with strong contract coverage and capital returns, while the main drags are cyclicality signals (TTM revenue decline), sizable future capex/financing requirements, and only mixed near-term technicals.
Positive Factors
Cash generation
Sustained operating cash generation (coverage well above 2x, ~3.6x recently) provides durable ability to fund dividends, buybacks, debt service and staged capex. Strong operating cash reduces refinancing dependence and supports financial flexibility through shipping cycles.
Negative Factors
Revenue cyclicality
A sharp TTM revenue drop underscores shipping cyclicality; top‑line normalization can erode margins and cash conversion if sustained. Even with strong recent profits, persistent weaker revenues reduce headroom for dividends, buybacks and discretionary capex over months to years.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained operating cash generation (coverage well above 2x, ~3.6x recently) provides durable ability to fund dividends, buybacks, debt service and staged capex. Strong operating cash reduces refinancing dependence and supports financial flexibility through shipping cycles.
Read all positive factors
Euroseas (ESEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$556.95M
Dividend Yield3.74%
Average Volume (3M)57.30K
Price to Earnings (P/E)4.1
Beta (1Y)1.02
Revenue Growth2.17%
EPS Growth2.19%
CountryUS
Employees365
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)19.09
Shares Outstanding7,055,381
10 Day Avg. Volume48,640
30 Day Avg. Volume57,296
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.82
Price to Sales (P/S)1.66
P/FCF Ratio5.92
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$88.67Price Target Upside15.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)16.74
Revenue Forecast (FY)$226.97M
Euroseas Business Overview & Revenue Model
Company Description
Euroseas Ltd. specializes in comprehensive global ocean transportation. The company manages and operates a fleet of containerships, facilitating the international movement of a diverse range of containerized goods, encompassing both dry and refrig...
How the Company Makes Money
Euroseas primarily makes money by chartering out its container vessels to customers (typically container liner operators) under charter agreements. Revenue is earned as hire/charter income based on contracted day rates for a specified period (time...
Euroseas Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlighted solid operational and financial performance (strong adjusted earnings, higher adjusted EBITDA, 100% utilization, rising TCEs, low breakeven, increased dividend and renewed buyback) and emphasized a disciplined growth path via newbuilds and selective JV activity. Key risks noted include a slight year‑over‑year decline in reported revenue and net income, higher operating costs, mark‑to‑market losses, substantial future capex needs for the expanded newbuilding program and industry‑wide delivery risk in 2027 that could pressure markets. On balance the positives (robust cash flow visibility, strong contract coverage, improved adjusted metrics, strong liquidity and NAV premium to market price) outweigh the challenges, though execution and market timing on the newbuilding program and future refinancing remain important to monitor.Positive Updates
Strong Profitability and Adjusted Earnings Growth
Net income of $32.52 million ($4.65 diluted EPS) for Q1 2026; adjusted net income $32.87 million ($4.70 diluted EPS). Adjusted EPS increased materially versus Q1 2025 (adjusted EPS Q1 2026 $4.70 diluted vs $3.76 in Q1 2025, ~+25%).
Negative Updates
Slight Revenue Decline
Total net revenues of $55.84 million in Q1 2026, a decrease of ~1% versus $56.4 million in Q1 2025, primarily due to operating three fewer vessels during the period.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and Adjusted Earnings Growth
Net income of $32.52 million ($4.65 diluted EPS) for Q1 2026; adjusted net income $32.87 million ($4.70 diluted EPS). Adjusted EPS increased materially versus Q1 2025 (adjusted EPS Q1 2026 $4.70 diluted vs $3.76 in Q1 2025, ~+25%).
Read all positive updates
Company Guidance
Management reiterated strong near-term revenue visibility and capital return plans: Q1 2026 results included net revenues $55.8M, net income $32.5M ($4.65 diluted EPS; adjusted EPS $4.70) and adjusted EBITDA ~$40.9M; the Board approved a $0.80 quarterly dividend (+6.7% q/q; ~5% annualized yield) and renewed the $20M buyback (480,500 shares repurchased, ~6.8% of shares, ~$11.4M deployed). Fleet and commercial guidance: operating fleet 21 vessels (~61,000 TEU, avg age ~13y) with no idle days, average TCE $30,354/day and 100% utilization in Q1; management said ~96% of 2026 voyage days are secured at ~$30,150/day (CFO cited contract coverage ~92% for 2026, ~75% for 2027 and ~43% for 2028), 86% of 2027 at ~$31,000/day and ~50% of 2028 at ~$31,500/day; two charters: EM Kea 36–38 months at $30,000/day and EM Spetses 22–24 months at $21,500/day. Growth and financing: 10 newbuilds on order (after adding 4), pipeline cost >$500M (advances ~$45M), two 2,800 TEU methanol‑ready ships (~$93M) and two 1,800 TEU reefers (~$64.5M) with targeted 60–65% leverage (management expects ~55–60% debt financing overall), JV sale of 49% of one intermediate ship for ~$12.2M (delivery Q1 2028, ≥60% debt). Balance sheet and breakevens: cash/current assets ~$218M, total debt $213.3M (avg margin ~2%; implied cost ~5.65% with SOFR 3.65%), book assets $722.7M, estimated fleet market value ~$675M and NAV ~$706M (~$100/share vs close $71, ~30% discount); daily cash‑flow breakeven ~$12.3–12.8k/vessel/day and operating opex ~$7,889/day.Euroseas Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 227.36M | 227.87M | 212.90M | 189.36M | 182.69M | 93.89M |
| Gross Profit | 148.47M | 144.75M | 127.33M | 119.86M | 114.52M | 52.23M |
| EBITDA | 173.92M | 180.57M | 149.76M | 143.82M | 129.84M | 52.95M |
| Net Income | 132.57M | 136.97M | 112.78M | 114.55M | 106.24M | 42.96M |
Balance Sheet | ||||||
| Total Assets | 722.68M | 700.46M | 591.22M | 424.67M | 328.59M | 221.51M |
| Cash, Cash Equivalents and Short-Term Investments | 193.89M | 177.02M | 73.74M | 58.61M | 25.85M | 26.53M |
| Total Debt | 211.54M | 216.81M | 205.40M | 130.00M | 107.23M | 118.04M |
| Total Liabilities | 231.99M | 237.01M | 228.27M | 158.10M | 160.44M | 144.74M |
| Stockholders Equity | 490.69M | 463.44M | 362.95M | 266.58M | 168.16M | 76.77M |
Cash Flow | ||||||
| Free Cash Flow | 108.16M | 64.08M | -50.76M | 17.71M | 23.39M | -21.49M |
| Operating Cash Flow | 138.33M | 141.13M | 128.17M | 130.01M | 114.08M | 52.63M |
| Investing Cash Flow | -21.19M | -15.20M | -168.77M | -102.19M | -87.13M | -74.11M |
| Financing Cash Flow | -51.32M | -23.28M | 56.96M | 5.06M | -27.01M | 46.65M |
Euroseas Technical Analysis
Positive
76.99
Price Trends
69.58
Positive
68.67
Positive
62.46
Positive
Market Momentum
2.61
Negative
69.08
Neutral
91.54
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 76.99 is above the 20-day moving average (MA) of 73.31, above the 50-day MA of 69.58, and above the 200-day MA of 62.46, indicating a bullish trend. The MACD of 2.61 indicates Negative momentum. The RSI at 69.08 is Neutral, neither overbought nor oversold. The STOCH value of 91.54 is Negative, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $331.70M | 5.16 | 9.13% | ― | 3.73% | -10.22% | |
76 Outperform | $556.95M | 4.14 | 29.70% | 3.83% | 2.17% | 2.19% | |
73 Outperform | $369.29M | 6.12 | 20.72% | 3.58% | 31.98% | 274.58% | |
68 Neutral | $300.20M | 4.99 | 11.56% | 1.78% | -3.68% | 268.98% | |
68 Neutral | $795.32M | 10.06 | 10.32% | 2.79% | 10.81% | 81.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $1.11B | 67.98 | <0.01% | 4.30% | 2.22% | -63.61% |
* Industrials Sector Average
ESEA
Euroseas
77.45
27.36
54.63%
DSX
Diana Shipping
2.50
0.99
65.67%
GNK
Genco Shipping
25.97
9.95
62.06%
SB
Safe Bulkers
7.75
3.78
95.07%
SHIP
Seanergy Maritime
17.26
10.34
149.46%
GASS
StealthGas
8.60
1.85
27.41%
Euroseas Corporate Events
Euroseas Shareholders Back Board and Auditors at 2026 Annual Meeting
Jul 24, 2026
Euroseas Ltd., the container shipping specialist listed on NASDAQ, reported the outcomes of its 2026 Annual General Meeting of Shareholders held on July 23, 2026 in Washington, DC. The meeting reflects continued alignment between management and in...
Euroseas Sets July 23, 2026 Date for Annual Shareholders’ Meeting
Jun 23, 2026
Euroseas Ltd., a Greece-based container shipping company listed on NASDAQ, operates a fleet of 21 feeder and intermediate containerships with a combined capacity of 61,144 teu and plans to expand to 33 vessels by 2029. Its operations are managed b...
Euroseas Orders Two Additional 1,800 TEU Feeder Containerships to Expand Modern Fleet
Jun 16, 2026
On June 15, 2026, Euroseas Ltd. announced it had exercised options to order two additional modern, fuel‑efficient, gearless 1,800 TEU feeder containerships from Nantong CIMC Sinopacific Offshore Engineering in China, with deliveries schedul...
Euroseas Secures Profitable Two‑Year Extensions for Feeder Containerships Stephania K and Pepi Star
May 26, 2026
On May 26, 2026, Euroseas announced that it has secured 2‑year charter contract extensions for its 2024‑built 1,800 teu feeder containerships M/V Stephania K and M/V Pepi Star at a gross daily rate of $25,500. The new charters, which r...
Euroseas Posts Strong Q1 2026 Results, Hikes Dividend and Extends Buyback
May 21, 2026
On May 21, 2026, Euroseas reported first-quarter 2026 results, posting total net revenues of $55.8 million and net income of $32.5 million, with an average of 21 vessels earning time charter equivalent rates of $30,354 per day. The company declare...
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.