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Euroseas Ltd (ESEA)
NASDAQ:ESEA
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Euroseas
(NASDAQ:ESEA)
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Rating:77Outperform
Price Target:
$65.00
▲(10.28% Upside)
Action:ReiteratedDate:11/21/25
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 (ESEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$437.35M
Dividend Yield4.95%
Average Volume (3M)32.01K
Price to Earnings (P/E)3.6
Beta (1Y)1.12
Revenue Growth7.26%
EPS Growth6.60%
CountryUS
Employees365
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)5.79
Shares Outstanding7,006,612
10 Day Avg. Volume39,468
30 Day Avg. Volume32,014
Financial Highlights & Ratios
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 Cap1.27
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda3.37
Forecast
1Y Price Target
$72.00Price Target Upside22.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)17.07
Revenue Forecast (FY)$226.73M
Euroseas Business Overview & Revenue Model
Company DescriptionEuroseas 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 MoneyEuroseas 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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial performance: revenue and adjusted EBITDA growth, near‑100% utilization, high forward coverage for 2026–2028, increased dividend and ongoing buybacks, and a strong liquidity position with apparent NAV upside. Key risks were clearly disclosed: the potential for market softening in 2027–2028 as pandemic-era newbuilding deliveries accelerate, an aging smaller-vessel fleet that could lead to volatility in scrapping and replacement decisions, higher OpEx (partly FX-driven), and upcoming financing needs and balloon repayments to fund newbuilds. On balance, the positive operational momentum, cash generation, and visibility into contracted revenue materially outweigh the near‑term and medium‑term risks discussed.Q4-2025 Updates
Positive Updates
Quarterly Revenue and Adjusted EBITDA Growth
Q4 2025 net revenues of $57.4M, up 7.7% year-over-year (from $53.3M). Q4 adjusted EBITDA of $40.7M, up 24% year-over-year (from $32.8M). Adjusted net income for the quarter was $1.3M (adjusted EPS $4.48 diluted).
Full-Year Revenue, EBITDA and Net Income Improvement
Full-year 2025 net revenues of $227.9M, up 7% year-over-year (from $212.9M). Full-year adjusted EBITDA of $155.9M, up 15% year-over-year (from $135.8M). Reported net income for 2025 of $137.0M versus $112.8M in 2024 (≈+21.5%). Full-year diluted EPS rose to $19.72 from $16.20 (≈+21.7%).
Strong Fleet Utilization and Forward Coverage
Utilization near 100% across periods. High forward coverage providing revenue visibility: ~87% of available voyage days fixed for 2026 at an average contracted rate of ~$30,700/day; ~71% fixed for 2027 at ~$31,900/day; ~41% fixed for 2028 at ~$32,400/day.
Dividend Increase and Share Repurchase Activity
Board increased quarterly dividend by 7% to $0.75 per share for 2025 (annualized $3.00, ~5% yield based on current share price). Since May 2022 repurchased 480,000 shares for ≈$11.4M under a 20,000,000 share program (reported as ~6.8% of outstanding shares).
Asset Disposals and Gains on Sales
Completed sale and delivery of MV Marcus V generating a gain on sale of $9.2M. Full-year gains on sale of vessels totaled $19.4M in 2025 (versus $5.7M in 2024).
Orderbook / Newbuild Deliveries Secured and Fleet Growth Plan
Four intermediate 4,484 TEU newbuilds under construction (two deliveries in 2027, two in 2028) adding ~18,000 TEU; fully delivered fleet to grow to 25 vessels with ~80,000 TEU. Company intends disciplined capital deployment and is focused on accretive newbuilding opportunities.
Strong Balance Sheet Liquidity and NAV Upside
Cash and current assets of €188.7M and $35.9M advances for newbuilds. Fleet book value $465M; total assets ≈$700M; debt ≈$218.6M; shareholders' book equity ≈$463M. Management estimates fleet market value ≈$664M and charter-adjusted NAV ≈$93.70/share vs last close $62.40 (~33% discount).
Market and Asset Value Strength
One-year time charter for a 5,000 TEU vessel at $36,000/day (02/20/2026), well above ten-year averages. Newbuilding and 10-year secondhand asset values remain materially higher than historical medians (newbuild ≈$43M; ten-year-old secondhand ≈$37.5M).
Negative Updates
Near‑to‑Medium Term Market Softening Risk
Clarksons projects TEU‑mile demand to decline ~1% in 2026 and ~5.5% in 2027 due to normalization of Suez routing; company warns that accelerated deliveries in 2027–2028 could soften charter markets and asset values if demand does not pick up.
Aging Feeder and Intermediate Fleet Exposure
Feeder (<3,000 TEU) orderbook low (~10%) while ~28% of that fleet is >20 years old. Intermediate (3,000–8,000 TEU) orderbook ~17% but ~29% of that segment >20 years and 37% 15–19 years — implying potential scrapping risk and replacement capex timing uncertainty.
Higher Operating Expenses per Day
Total daily operating expenses (ex. drydocking) increased to $8,284/day in 2025 from $7,728/day in 2024 (≈+7.2%). Management attributes part of the increase to adverse USD/EUR exchange movements and fixed G&A allocation on fewer operated vessels in Q4.
Financing Needs for Newbuilds and Upcoming Balloon Payments
Outstanding bank debt ≈$218.4M at ~2% margin (total cost of debt ~5.7% assuming 3‑yr SOFR). Expected additional financing of $140–$150M to fund four newbuilds. Debt amortization includes notable balloon payments (≈€20M in 2027 and ~$26.4M in 2029–2030), creating refinancing needs.
Modest Scrapping Activity and Potential Oversupply
Recycling remained muted with only 11 vessels scrapped in 2025 while the global fleet expanded by ≈7% in 2025. Limited demolition so far may leave the market exposed to oversupply if all newbuild deliveries coincide with demand normalization.
Macro & Geopolitical Downsides
IMF and management highlighted macro downside risks: China growth decelerating (forecast 4.5% in 2026 → 4.0% in 2027) and ongoing geopolitical trade/disruption risk which could pressure freight volumes and charter rates.
Rising Interest & Finance Costs
Interest and other finance costs for the 12 months 2025 rose to $15.1M from $13.8M in 2024 (≈+9.4%), driven by higher average debt balances despite lower benchmark rates, increasing the fixed-cost base.
Company Guidance
Management guided to strong near-term revenue visibility and capital flexibility, citing contract coverage of ~87% for 2026 at an average contracted rate of ~$30,700/day, ~71% for 2027 at ~$31,890/day and ~41% for 2028 at ~$32,400/day, with fleet utilization near 100% and 2025 average TCEs of ~$30,268/day (annual avg ~$29,107/day). Key 2025 metrics: full-year net revenues $227.9M (up 7% YoY), net income ~$137M, adjusted EBITDA $155.9M (up 15%), basic/diluted EPS ~$19.73/$19.72 and adjusted EPS ~$16.75/$16.74; quarter/period highlights included total net revenues $57.4M, adjusted EBITDA $40.7M and a $9.2M gain on sale. Balance sheet and liquidity: cash and current assets €188.7M, newbuilding advances ~$35.9M, fleet book value $465M, total assets ~$700M, bank debt ~$218.4M at ~2% margin (assumed total cost ~5.7% with 3.7% SOFR), scheduled repayments $19.5M (2026), $36.8M (2027 incl. €20M balloon), $12M (2028) and $33.8M (2029–30 incl. $26.4M balloon), plus estimated newbuild financing of $140–150M. Capital allocation and shareholder returns: quarterly dividend raised 7% to $0.75/share (annualized $3.00; ~5% yield), share repurchases of 480,000 shares (~6.8% of shares) for ~$11.4M under a 20,000,000-share program, and a portfolio of 21 owned vessels (avg age 13.1 yrs) expanding to 25 vessels and ~80,000 TEU when four 4,484-TEU newbuilds (adding ~18,000 TEU) are delivered; management reiterated breakeven and risk buffers with cash‑flow breakevens of ~$13,009/day (2025) and ~$12,200/day (next 12 months) and an estimated NAV of ~$93.70/share vs last close $62.40 (~33% discount).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.85
Very Positive
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.78
Positive
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.70
Positive
| 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
Positive
58.94
Price Trends
55.66
Positive
56.56
Positive
53.05
Positive
Market Momentum
1.53
Negative
70.01
Negative
89.48
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 57.07, above the 50-day MA of 55.66, and above the 200-day MA of 53.05, indicating a bullish trend. The MACD of 1.53 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 89.48 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $315.43M | 5.01 | 9.65% | ― | 12.23% | -5.22% | |
77 Outperform | $437.35M | 3.60 | 31.33% | 4.95% | 7.26% | 6.60% | |
72 Outperform | $649.79M | 21.41 | 4.64% | 4.16% | -13.74% | -59.37% | |
69 Neutral | $1.03B | -217.91 | -0.48% | 4.04% | -24.58% | -110.22% | |
66 Neutral | $299.40M | 14.04 | 7.65% | 4.94% | -8.99% | -68.66% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $295.22M | 15.64 | 4.91% | 2.34% | -5.45% | 139.59% |
* Industrials Sector Average
ESEA
Euroseas
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36.85
140.96%
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6.44
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73.58%
SHIP
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Euroseas Corporate Events
Euroseas Secures 3-Year Charter Contracts for Containerships
Dec 10, 2025
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.
Euroseas Ltd. Announces Strong Q3 2025 Results and New Vessel Charters
Nov 19, 2025
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.
The most recent analyst rating on (ESEA) stock is a Buy with a $74.00 price target. To see the full list of analyst forecasts on Euroseas stock, see the ESEA Stock Forecast page.
Euroseas Ltd. Reports Strong Financial Performance for First Half of 2025
Oct 30, 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.
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 Ltd. Reports Strong Financial Performance for First Half of 2025
Oct 30, 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.
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.
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.