ESEA  Euroseas Ltd.

Exchange

NASDAQ

Sector

Transportation

Industry

Marine Transportation

Market Cap.

13.52M

Vuru Grade

12.24/100

Current Price

$1.65
+0.02 (+1.23%)

Company Metrics

  • P/E 40.28
  • P/S 0.45
  • P/B 0.2
  • EPS -4
  • Cash ROIC -6.86%
  • Cash Ratio 0.45
  • Dividend 0 / 0%
  • Avg. Vol. 1.36M
  • Shares 6.41M
  • Market Cap. 13.52M

Company Description

Euroseas Ltd., together with and subsidiaries, provides ocean-going transportation services worldwide. The company owns and operates dry bulk carriers that transport bulks, such as iron ore, coal, and grains, as well as minor bulks, which include bauxite, phosphate, and fertilizers. It also owns and operates containerships and multipurpose vessels that transport dry and refrigerated containerized ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Euroseas Ltd. Reports Results for the Year and Quarter Ended December 31, 2016
Yahoo Finance - Feb 16, 2017
MAROUSSI, ATHENS, GREECE--(Marketwired - Feb 16, 2017) - Euroseas Ltd. ( NASDAQ : ESEA ) (the "Company" or "Euroseas"), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and ...
Euroseas Ltd. (ESEA) to Acquire Newbuilding Ultramax Drybulk Carrier
StreetInsider.com - Dec 21, 2016
Euroseas Ltd. (NASDAQ: ESEA) announced today that it signed an agreement to acquire from Dayang shipyard, Hull DY160, an Ultramax drybulk carrier, of 63,500 dwt built 2017.
Worth Watching Stock: Euroseas Ltd. (NASDAQ:ESEA) - Post Registrar
BRIEF-Euroseas Ltd announces delivery of newbuilding Ultramax drybulk carrier
Reuters - Jan 17, 2017
SANTIAGO, Feb 1 Workers at BHP Billiton's Chilean mine Escondida, the world's biggest copper mine, have voted to reject a company wage offer and go on strike, the union said in the early hours of Wednesday.
Zacks: Euroseas Ltd. (ESEA) Receives Consensus Recommendation of “Hold” from ...
The Cerbat Gem - 8 hours ago
Euroseas logo Shares of Euroseas Ltd. (NASDAQ:ESEA) have received an average broker rating score of 3.00 (Hold) from the one analysts that cover the stock, Zacks Investment Research reports.
The Euroseas Ltd. (ESEA) Lowered by the Zacks Investment Research - DailyQuint
Euroseas Ltd. ESEA (US: Nasdaq)
Wall Street Journal - Feb 11, 2011
News Euroseas Ltd.ESEA. Significant News Only. 01/23/17; Press Release. Euroseas Ltd. Announces Bank Loan to Finance Recent Acquisition and Sale of Containership Feeder Vessel.
Euroseas Ltd.
MarketWatch - Apr 21, 2010
Euroseas Ltd. prices public offering of 5 mln shares. 8:26 a.m. June 29, 2007. - Mike Maynard. Euroseas pegs value of vessels at $37.4 million.
Euroseas Ltd. (ESEA) Acquires Drybulk Vessel, Enters $2M Short-Term Loan Facility
StreetInsider.com - Nov 23, 2016
Euroseas Ltd. (Nasdaq: ESEA) announced that it signed a memorandum of agreement to purchase the M/V Capetan Tassos, a Panamax size drybulk carrier of 75,100 dwt built in 2000 in Japan for approximately $4.4 million.
analysts Estimates and Ratings: Euroseas Ltd. (NASDAQ:ESEA) - News Oracle
Euroseas (ESEA) Stock: Back In The Green, But For How Long? - CNA Finance (press release)
Zacks: Euroseas Ltd. (ESEA) Given Consensus Rating of “Hold” by Brokerages
Hellenic Shipping News Worldwide - Jan 31, 2017
Euroseas logoShares of Euroseas Ltd. have earned an average broker rating score of 3.00 (Hold) from the one brokers that provide coverage for the stock, Zacks Investment Research reports.
Analysts Anticipate Euroseas Ltd. (ESEA) to Post ($0.13) EPS - Sports Perspectives
Euroseas Ltd. Scales Back Amid Falling Dry Bulk Freight Rates
Wall Street Journal - Jan 5, 2016
Shipping company Euroseas Ltd. is scaling back capacity and resetting its finances amid bleak world-wide demand for hard commodities and collapsing dry bulk freight rates.
Will Euroseas Survive The New Model?
Seeking Alpha - May 19, 2015
Euroseas (NASDAQ: ESEA) is a holding company with a fleet of 19 vessels, which includes four newbuild bulkers scheduled for delivery in late 2015 (2) and early 2016 (2).
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ESEA to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ESEA's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$1.65 Current Price

$-3.90 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$10.99 Book Price

Undervalued by 566.04%


Very Poor Cash Return on Invested Capital over the past 5 years

ESEA has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

ESEA has lost $6.86 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 17.32M - -1.98M -37.69M -18.66M
divided by
Invested Capital 243.81M 222.57M 126.40M 139.98M 144.33M
Cash ROIC 7.10% - -1.57% -26.93% -12.93%

Very Poor Return on Equity over the past 5 years

ESEA has shown an inability to deliver results for shareholders. This could be due to poor management, ESEA operating in a highly competitive industry, or having a weak business in general.

ESEA has generated a $27.44 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 1.12M -13.20M -103.42M -17.92M -14.05M
divided by
Stockholders' Equity 211.92M 209.63M 104.70M 100.20M 95.05M
Return on Equity 0.53% -6.30% -98.78% -17.88% -14.78%

Poor Business Performance over the past 10 years

ESEA's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

ESEA has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -32.86M -100.54M 28.88M -54.39M -3.37M 17.32M - -1.98M -37.69M -18.66M

Good Balance Sheet

ESEA's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 2.79M 107.03M 74.62M 41.42M 34.54M 31.23M 33.37M 11.40M 25.41M 8.72M
Current Assets 9.98M 118.31M 92.54M 58.93M 46.40M 38.88M 45.07M 16.95M 30.85M 21.58M
Total Assets 117.51M 371.19M 340.62M 323.42M 321.68M 296.15M 278.31M 156.62M 190.58M 172.41M
Current Liabilities 21.67M 35.18M 21.42M 30.44M 25.21M 21.10M 22.37M 18.81M 25.19M 19.37M
Total Liabilities 79.49M 99.40M 76.39M 91.97M 102.98M 84.23M 68.69M 51.91M 90.38M 77.36M
Stockholder' Equity 38.01M 271.79M 264.23M 231.45M 218.69M 211.92M 209.63M 104.70M 100.20M 95.05M
Current Ratio 0.46 3.36 4.32 1.94 1.84 1.84 2.01 0.90 1.22 1.11
TL-to-TA 0.68 0.27 0.22 0.28 0.32 0.28 0.25 0.33 0.47 0.45

Low or No Reinvestment of Profits over the past 10 years

ESEA has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to ESEA operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 19.35M 39.73M 28.74M -5.06M -18.52M -25.86M -43.49M -148.98M -168.34M -184.03M
Retained Earnings Growth - 105.36% -27.66% -117.61% -265.86% -39.65% -68.20% -242.56% -12.99% -9.32%

Erratic Net Profit Margins over the past 10 years

ESEA has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 20.07M 40.66M 23.67M -15.63M -6.61M 1.12M -13.20M -103.42M -17.92M -14.05M
divided by
Revenue 40.31M 82.08M 126.30M 63.78M 52.48M 61.40M 55.16M 39.15M 40.63M 37.68M
Net Profit Margin 49.78% 49.54% 18.74% -24.50% -12.59% 1.82% -23.93% -264.15% -44.10% -37.28%

Strong Pricing Power over the past 10 years

ESEA has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$49.32 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 28.79M 63.94M 95.69M 36.69M 22.84M 31.22M 27.14M 8.61M 9.42M 8.25M
divided by
Revenue 40.31M 82.08M 126.30M 63.78M 52.48M 61.40M 55.16M 39.15M 40.63M 37.68M
Gross Margin 71.42% 77.90% 75.76% 57.52% 43.52% 50.85% 49.20% 21.98% 23.17% 21.90%

High Capital Intensity over the past 10 years

ESEA spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

275.89% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 53.83M 149.50M 45.40M 62.22M 16.12M - - 6.02M 36.96M 16.63M
divided by
Net Income 20.07M 40.66M 23.67M -15.63M -6.61M 1.12M -13.20M -103.42M -17.92M -14.05M
Capital Expenditure Ratio 268.22% 367.65% 191.79% -398.17% -244.05% - - -5.82% -206.27% -118.37%

Inconsistent Dividend History over the past 10 years

ESEA has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 9.47M 20.28M 34.55M 10.85M 6.86M 8.44M 4.45M 2.09M 13,050.00 -
divided by
Shares Outstanding 12.54M 21.64M 30.51M 30.65M 30.90M 31.10M 38.95M 45.44M 54.79M 6.41M
Dividend Paid Per Share 0.76 0.94 1.13 0.35 0.22 0.27 0.11 0.05 0.00 -
Price at Year End 4.69 9.26 3.28 3.42 3.27 2.35 0.86 1.44 0.76 2.60
Dividend Yield 16.10% 10.12% 34.53% 10.35% 6.79% 11.55% 13.28% 3.20% 0.03% -

History of Stock Buybacks over the past 10 years

ESEA has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 12.54M 21.64M 30.51M 30.65M 30.90M 31.10M 38.95M 45.44M 54.79M 6.41M
Stock Bought Back - -42.09% -29.05% -0.47% -0.81% -0.66% -20.14% -14.29% -17.07% 754.72%
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