Euroseas (ESEA) AI Stock Analysis

• Market Cap: $434.27M
• Dividend Yield: 4.19%
• Average Volume (3M): 43.77K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 1.01
• Revenue Growth: 7.73%
• EPS Growth: 0.50%
• Country: US
• Employees: 365
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 4.29
• Shares Outstanding: 7,006,612
• 10 Day Avg. Volume: 40,317
• 30 Day Avg. Volume: 43,774
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 2.69
• 1Y Price Target: $73.00
• Price Target Upside: 17.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 83 Outperform
• Price Target: $72.00 ▲(16.17% Upside)

Euroseas' overall stock score is driven by its strong technical indicators and attractive valuation, suggesting potential for price appreciation. Financial performance is solid, but challenges in revenue and cash flow growth need attention. Positive earnings call sentiment supports the score, despite some operational challenges.

Positive Factors

Fleet Expansion

The construction of new fuel-efficient vessels enhances Euroseas' competitive edge by increasing capacity and reducing operational costs, supporting long-term growth and sustainability in the shipping industry.

Strong Profitability

High profitability indicates efficient operations and cost management, providing Euroseas with the financial strength to invest in growth opportunities and withstand market fluctuations.

Strategic Fleet Management

Securing long-term charters at favorable rates ensures stable revenue streams and reduces exposure to market volatility, enhancing Euroseas' financial predictability and operational stability.

Negative Factors

Decreased Charter Rates

Decreasing charter rates can pressure revenue and profitability, potentially impacting Euroseas' ability to maintain its financial performance and invest in future growth.

Increased Interest Costs

Rising interest costs can erode net income and reduce financial flexibility, potentially limiting Euroseas' capacity to fund strategic initiatives or weather economic downturns.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential cash management issues, which could hinder Euroseas' ability to invest in expansion or manage debt, affecting long-term financial health.

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 61.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 61.98 is below the 20-day moving average (MA) of 62.41, above the 50-day MA of 57.75, and above the 200-day MA of 38.53, indicating a neutral trend. The MACD of 1.25 indicates Positive momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 23.09 is Neutral, 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	83 Outperform	$434.27M	3.64	32.88%	4.19%	7.73%	0.50%
GASS	79 Outperform	$249.24M	3.94	11.15%	―	13.82%	-10.37%
SB	70 Neutral	$470.67M	10.78	11.71%	4.35%	-9.65%	-46.46%
DSX	58 Neutral	$204.92M	13.57	2.52%	2.26%	-4.90%	21.09%
CTRM	53 Neutral	$20.29M	-0.90	2.56%	―	-29.15%	-118.42%
GLBS	49 Neutral	$22.85M	-3.87	0.24%	―	11.80%	-186.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%