United Maritime Corp. (USEA) AI Stock Analysis

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United Maritime Corp.

(NASDAQ:USEA)

45Neutral

United Maritime Corp.'s stock score is driven by mixed financial performance with high leverage and cash flow issues. Technical indicators reflect a bearish trend, and valuation concerns persist due to net losses. Earnings call provided some positive strategic insights, but declining revenue and dividends remain key concerns.

Positive Factors

Earnings

USEA reported 4Q24 results above recently-reduced forecasts.

Future Outlook

Forward shipping rates suggest a rebound in dry bulk shipping rates due to new coal-fired power plants starting operations in China and increased iron ore inventories.

Market Demand

Persistent demand from China for dry bulk imports supports the market.

Negative Factors

Financial Leverage

The net debt-to-EBITDA ratio of USEA is expected to increase significantly in 2025, indicating higher financial leverage.

Financial Performance

Forecasts indicate a reduction in TCE rates, leading to lower revenue and a wider loss per share estimate for 4Q24.

Revenue

USEA plans to finalize its sale of one of its Capesize ships, leading to reduced revenue estimates.

United Maritime Corp. (USEA) vs. S&P 500 (SPY)

Market Cap

$10.85M

Dividend Yield19.93%

Average Volume (3M)34.67K

Price to Earnings (P/E)―

Beta (1Y)0.56

Revenue Growth25.98%

EPS Growth-493.00%

CountryUS

Employees6

SectorIndustrials

Sector Strength79

IndustryMarine Shipping

Share Statistics

EPS (TTM)-0.40

Shares Outstanding9,204,267

10 Day Avg. Volume15,386

30 Day Avg. Volume34,669

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap9.80

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit32.62

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$3.50

Price Target Upside196.61% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

United Maritime Corp. Business Overview & Revenue Model

Company DescriptionUnited Maritime Corp. (USEA) is a maritime transportation company primarily engaged in the seaborne transportation of dry bulk commodities. Operating within the shipping industry, the company specializes in the management and operation of a diverse fleet of vessels that transport essential goods across global trade routes. Its services are crucial in facilitating international trade and ensuring the efficient movement of raw materials required by various industries worldwide.

How the Company Makes MoneyUnited Maritime Corp. generates revenue primarily through the chartering of its fleet of dry bulk vessels. The company's key revenue streams include time charters, voyage charters, and contracts of affreightment, where customers pay for the transportation of goods based on time or voyage duration. Additionally, the company may enter into strategic partnerships or collaborations with other shipping firms or commodity producers to optimize fleet utilization and expand its service offerings. Factors such as global trade demand, freight rates, and operational efficiency significantly influence the company's earnings.

United Maritime Corp. Financial Statement Overview

Summary

United Maritime Corp. has demonstrated strong revenue growth, but its profitability margins are declining with a significant drop in gross profit margin. The company faces cash flow management issues with negative free cash flow and operating cash flow, alongside a high debt-to-equity ratio, although it maintains a stable equity ratio.

Income Statement

Positive

The company has shown a strong revenue growth from 2022 to 2023, with a 58.3% increase. However, the gross profit margin has decreased significantly over the years, from 45.9% in 2021 to 9.0% in 2023. Net profit margin stands at a low 0.6% in 2023, indicating challenges in managing costs or high operating expenses. EBIT and EBITDA margins are relatively healthy, suggesting some operational efficiency.

Balance Sheet

Positive

The balance sheet exhibits a high debt-to-equity ratio of 1.46 in 2023, which presents a potential risk if market conditions change. However, the company maintains a reasonable equity ratio of 37.7%, providing some stability. The return on equity has severely dropped to 0.34% in 2023, indicating inefficient use of equity compared to previous years.

Cash Flow

Neutral

The cash flow statement shows negative free cash flow and operating cash flow in 2023, a decline from positive figures in 2022, indicating cash flow management issues. The free cash flow to net income ratio is negative, highlighting cash constraints despite positive net income.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
36.07M	22.78M	7.40M	4.12M	6.88M
	Gross Profit
3.26M	10.46M	3.87M	941.43K	1.24M
	EBIT
7.08M	2.50M	2.92M	195.26K	448.10K
	EBITDA
16.77M	41.84M	3.67M	1.06M	1.35M
	Net Income Common Stockholders
221.00K	74.89M	1.55M	498.42K	-995.08K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.80M	69.93M	765.48K	406.01K	0.00
	Total Assets
174.81M	125.66M	13.43M	13.94M	0.00
	Total Debt
95.95M	50.08M	5.38M	6.09M	0.00
	Net Debt
82.15M	-19.85M	4.62M	5.68M	0.00
	Total Liabilities
108.94M	61.09M	6.39M	6.63M	0.00
	Stockholders Equity
65.87M	64.57M	7.04M	7.31M	0.00
Cash Flow		Free Cash Flow
-87.98M	-86.78M	3.60M	-455.39K	610.81K
	Operating Cash Flow
-6.23M	6.74M	3.66M	-444.61K	621.06K
	Investing Cash Flow
-59.14M	36.33M	-56.07K	-10.78K	-10.25K
	Financing Cash Flow
9.94M	26.87M	-3.24M	-730.95K	980.85K

United Maritime Corp. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.18

Price Trends

50DMA

1.46

Negative

100DMA

1.62

Negative

200DMA

1.95

Negative

Market Momentum

MACD

-0.07

Negative

RSI

36.93

Neutral

STOCH

43.61

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USEA, the sentiment is Negative. The current price of 1.18 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.46, and below the 200-day MA of 1.95, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 36.93 is Neutral, neither overbought nor oversold. The STOCH value of 43.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USEA.

United Maritime Corp. Risk Analysis

United Maritime Corp. disclosed 70 risk factors in its most recent earnings report. United Maritime Corp. 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

United Maritime Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CISS	73 Outperform	$2.71M	0.08	-4.33%	―	47.17%	-97.95%
PSHG	64 Neutral	$16.78M	1.26	17.20%	―	-19.73%	-33.68%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%
CTRM	63 Neutral	$21.26M	0.69	15.48%	―	-45.58%	45.06%
OP	46 Neutral	$5.19M	―	-20.19%	―	35.58%	-64.92%
USEA	45 Neutral	$10.85M	―	-5.37%	19.93%	25.98%	-493.00%
GLBS	40 Underperform	$22.85M	53.11	0.24%	―	11.74%	-91.84%

* Industrials Sector Average

Performance Comparison

USEA

United Maritime Corp.

1.18

-1.04

-46.85%

PSHG

Performance Shipping

1.35

-0.85

-38.64%

GLBS

Globus Maritime

1.11

-0.76

-40.64%

CTRM

Castor Maritime

2.20

-1.01

-31.46%

OceanPal Inc

0.69

-1.83

-72.62%

CISS

C3is Inc.

3.87

-16.68

-81.17%

United Maritime Corp. Earnings Call Summary

Earnings Call Date:Mar 18, 2025

(Q4-2024)

% Change Since: -36.90%|

Next Earnings Date:May 15, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mixed sentiment with notable achievements in fleet optimization, dividends, and new market entry. However, reduced net revenue, dividend cuts, and a net loss for the year highlight significant challenges. Despite these, there is optimism about future market conditions and strategic positioning.

Q4-2024 Updates

Positive Updates

Successful Strategic Fleet Development

United Maritime optimized its fleet by selling older vessels and acquiring newer, high-quality Japanese-built ships, enhancing the fleet's compliance with environmental regulations.

Strong Dividends and Share Repurchase Program

Declared a total of $0.235 dividends per share for 2024 and repurchased about 2% of outstanding shares. Extended share repurchase program by 12 months with $1.9 million remaining.

Offshore Market Entry

Acquired an equity stake in an energy construction vessel with expected completion in 2027, aligning with growing demand for offshore infrastructure.

Improved EBITDA

Adjusted EBITDA for Q4 2024 increased by 11% compared to 2023, indicating improved operating leverage.

Negative Updates

Reduced Net Revenue

Net revenue for Q4 2024 was $10.8 million, down from $11.6 million in Q4 2023, affected by a slowdown in coal and iron ore exports.

Dividend Reduction

Board approved a reduced dividend of $0.01 per share for Q4 2024 due to the performance of the Panamax/Kamsarmax market.

Net Loss for the Year

Recorded a net loss of $3.4 million for the full year 2024, compared to a net profit of $200,000 in 2023, primarily due to fewer vessel sales.

Challenging Dry Bulk Market Conditions

Capesize and Panamax charter rates softened due to high inventory levels in China and adverse weather conditions affecting exports.

Company Guidance

During the conference call, United Maritime Corporation provided guidance on several financial and operational metrics for the fourth quarter and full year of 2024. The company reported a net revenue of $10.8 million for Q4 2024, down from $11.6 million in Q4 2023, with a daily time charter equivalent (TCE) of $14,250 compared to $15,874 the previous year. Despite a temporary slowdown in coal and iron ore exports impacting performance, the company declared total dividends of $0.235 per share for 2024, with a reduced dividend of $0.01 per share for Q4. United Maritime successfully addressed all upcoming debt maturities until Q4 2026 and repurchased about 450,000 shares, representing approximately 5% of outstanding common shares. The share repurchase program was extended by 12 months, with $1.9 million remaining available, potentially covering an additional 11% of outstanding shares. Looking ahead, the company expects a first quarter 2025 TCE of approximately $10,300 with 94% of operating days already invoiced, and anticipates higher TCE rates for the subsequent quarters of 2025. Additionally, United Maritime's strategic fleet developments included the sale of older vessels and reinvestment in newer, high-quality Japanese-built ships, ensuring compliance with evolving regulations. The company also highlighted its entry into the offshore market with an equity stake in an energy construction vessel, expected to complete in 2027, and spoke optimistically about the long-term fundamentals of the dry bulk market, despite current volatility.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.