Euroseas (ESEA) AI Stock Analysis

• Market Cap: $437.35M
• Dividend Yield: 4.95%
• Average Volume (3M): 34.16K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 1.12
• Revenue Growth: 7.26%
• EPS Growth: 6.60%
• Country: US
• Employees: 365
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 5.79
• Shares Outstanding: 7,006,612
• 10 Day Avg. Volume: 45,201
• 30 Day Avg. Volume: 34,158
• PEG Ratio: 0.13
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 5.92
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.45
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 3.27
• 1Y Price Target: $85.00
• Price Target Upside: 44.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 17.07
• Revenue Forecast (FY): $226.73M

• Rating: 80 Outperform
• Price Target: $75.00 ▲(27.25% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance (especially profitability and improved leverage) and very attractive valuation (low P/E plus a meaningful dividend yield). Technicals support the uptrend, but overbought indicators raise near-term volatility risk. The earnings call adds confidence via high forward contract coverage and shareholder returns, tempered by disclosed 2027–2028 market and financing risks.

Positive Factors

High profitability and margin expansion

Euroseas has delivered materially higher net income and standout margins in recent years, indicating strong operating leverage in its feeder/intermediate niche. Durable profitability supports internal funding for capex, dividends and buybacks, and provides a buffer through shipping cycles.

Strong forward contract coverage and utilization

High multi-year charter coverage and near‑100% utilization create durable revenue visibility, reducing reliance on volatile spot markets. This structural forward cover improves cash flow predictability, aids debt servicing and planning for newbuild deliveries over the next 2–4 years.

Improved liquidity with shareholder returns

Substantial cash balances alongside a raising dividend and active buybacks signal strong liquidity and disciplined capital allocation. This combination supports accretive fleet investments while returning capital, reflecting management confidence in sustainable cash generation.

Negative Factors

Upcoming financing needs and balloon repayments

Funding four newbuilds and notable balloon maturities requires significant external financing, creating refinancing risk if credit markets tighten or charter rates soften. Elevated financing needs increase exposure to rising rates and could strain liquidity if cash generation weakens.

Market softening risk from orderbook/demand normalization

An industry‑wide delivery wave and weakening TEU‑mile demand can depress charter rates and asset values over multiple years. As a cycle‑exposed owner, Euroseas could face lower earnings and NAV compression if newbuild deliveries outpace demand recovery in 2027–2028.

Aging feeder/intermediate fleet and scrapping uncertainty

A concentrated older-vessel exposure raises maintenance, drydocking and operational risk and creates timing uncertainty for replacement capex. Limited scrapping so far risks an eventual supply correction or abrupt disposal/replacement needs that could pressure returns and cash flow.

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. 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

Strong income statement performance with high margins and rising net income (Income Statement Score 86). Balance sheet has improved via meaningful deleveraging but still carries sizable absolute debt (Balance Sheet Score 74). Cash generation is positive but free cash flow is volatile and cash conversion is inconsistent (Cash Flow Score 68), which is important in a cyclical shipping business.

Income Statement

Revenue has expanded strongly over the period, accelerating materially in 2021–2022 and still growing in 2024–2025. Profitability is a standout: recent years show exceptionally high gross and net margins, with net income rising from 2024 to 2025. The main weakness is cyclicality risk implied by the sharp step-change versus 2020 and the uneven growth trajectory, which is typical for shipping-rate-driven businesses.

Balance Sheet

Leverage has improved meaningfully versus 2020–2021, with debt-to-equity dropping from very high levels to a more moderate range by 2023–2025, while equity and assets expanded. Returns on equity are consistently strong, indicating efficient capital use. The offset is that absolute debt remains sizable and profitability is high enough that any industry downturn could pressure coverage and returns, so balance sheet risk is improved but not eliminated.

Cash Flow

Operating cash flow is consistently positive and large relative to profits in recent years, supporting liquidity and debt servicing, and free cash flow rebounded strongly in 2025 after a weak 2024. However, free cash flow has been volatile (negative in 2021 and 2024) and, even in 2025, free cash flow covered less than half of net income, suggesting meaningful capital spending and/or working-capital swings that can reduce cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	227.87M	212.90M	189.36M	182.69M	93.89M
Gross Profit	144.75M	127.33M	119.86M	114.52M	52.23M
EBITDA	158.56M	149.76M	143.82M	129.84M	52.95M
Net Income	136.97M	112.78M	114.55M	106.24M	42.96M
Balance Sheet
Total Assets	700.46M	591.22M	424.67M	328.59M	221.51M
Cash, Cash Equivalents and Short-Term Investments	177.02M	73.74M	58.61M	25.85M	26.53M
Total Debt	216.81M	205.40M	130.00M	107.23M	118.04M
Total Liabilities	237.01M	228.27M	158.10M	160.44M	144.74M
Stockholders Equity	463.44M	362.95M	266.58M	168.16M	76.77M
Cash Flow
Free Cash Flow	64.08M	-50.76M	17.71M	23.39M	-21.49M
Operating Cash Flow	141.13M	128.17M	130.01M	114.08M	52.63M
Investing Cash Flow	-15.20M	-168.77M	-102.19M	-87.13M	-74.11M
Financing Cash Flow	-23.28M	56.96M	5.06M	-27.01M	46.65M

Euroseas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.94
• 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 58.94 is above the 20-day moving average (MA) of 57.43, above the 50-day MA of 55.76, and above the 200-day MA of 53.20, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 71.27 is Negative, neither overbought nor oversold. The STOCH value of 90.50 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
GASS	83 Outperform	$315.43M	5.01	9.65%	―	12.23%	-5.22%
ESEA	80 Outperform	$437.35M	3.60	33.15%	4.95%	7.26%	6.60%
SB	72 Outperform	$649.79M	21.41	4.64%	4.16%	-13.74%	-59.37%
GNK	69 Neutral	$1.03B	-217.91	-0.48%	4.04%	-24.58%	-110.22%
SHIP	66 Neutral	$299.40M	14.04	7.65%	4.94%	-8.99%	-68.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DSX	60 Neutral	$295.22M	15.64	4.91%	2.34%	-5.45%	139.59%

Euroseas Corporate Events

Euroseas Delivers Robust 2025 Results, Lifts Dividend as Charter Coverage Underpins Outlook

Euroseas reported strong results for the fourth quarter and full year 2025, released on February 25, 2026, highlighting total net revenues of $57.4 million and net income of $40.5 million for the quarter, with an average of 21.22 vessels earning time charter equivalent rates of $30,268 per day. For full year 2025, the company posted $227.9 million in net revenues, $137.0 million in net income, adjusted EBITDA of $155.9 million and operated an average of 22.22 vessels at $29,107 per day, while also declaring a higher quarterly dividend of $0.75 per share and continuing share buybacks, signaling confidence in sustained profitability.

Management emphasized that charter rates remained high through late 2025 and early 2026 and that about 87% of 2026 and over 71% of 2027 operating days are already covered at profitable levels, underpinning more than $550 million of contracted revenue over the next five years. While noting broader containership market risks from a large orderbook in bigger ships, potential Suez Canal normalization and geopolitical and trade uncertainties, Euroseas stressed that its focus on feeder and intermediate vessels and strong balance sheet should allow it to navigate volatility and pursue accretive fleet investments while increasing shareholder returns.

The most recent analyst rating on (ESEA) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Euroseas stock, see the ESEA Stock Forecast page.

Euroseas Secures Two-Year Charter Extension for Feeder Ship EM Spetses

On February 11, 2026, Euroseas announced it had secured a new time charter for its 2007-built 1,740 TEU feeder containership EM Spetses for a minimum of 22 to a maximum of 24 months at the charterer’s option, at a gross daily rate of $21,500. The charter, which will start on April 12, 2026 in direct continuation of the vessel’s current contract, represents a daily rate increase of more than $3,000 and underscores firm demand in the tight feeder containership market, with the fixture expected to generate about $8.9 million of EBITDA over the minimum period and lift Euroseas’ charter coverage for 2026–2028 to roughly 87%, 71% and 41%, respectively.

The most recent analyst rating on (ESEA) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Euroseas stock, see the ESEA Stock Forecast page.

Euroseas Secures 3-Year Charter Contracts for Containerships

On December 9, 2025, Euroseas Ltd. announced new 3-year forward charter contracts for three of its modern 2,800 TEU containerships, namely M/V Leonidas Z, M/V Gregos, and M/V Terataki. These contracts, set to begin after the current charters end in 2026, are valued at a daily rate of $30,000 and are expected to generate approximately $75 million in EBITDA over the minimum contracted period. This move significantly enhances Euroseas’ revenue and earnings visibility through 2029, while reinforcing its market position amidst strong demand in the feeder container segment.

The most recent analyst rating on (ESEA) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Euroseas stock, see the ESEA Stock Forecast page.