ESEA  Euroseas Ltd.

Exchange

NASDAQ

Sector

Transportation

Industry

Marine Transportation

Market Cap.

20.11M

Vuru Grade

8.30/100

Current Price

$1.80
-0.01 (-0.55%)

Company Metrics

  • P/E 40.28
  • P/S 0.62
  • P/B 0.4
  • EPS -2.82
  • Cash ROIC -12.64%
  • Cash Ratio 0.29
  • Dividend 0 / 0%
  • Avg. Vol. 56,909.00
  • Shares 8.17M
  • Market Cap. 20.11M

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. Announces Delivery of Container Feeder Vessel, Declaration of ...
Marketwired (press release) - Oct 2, 2017
ATHENS, GREECE--(Marketwired - Oct 2, 2017) - Euroseas Ltd. ( NASDAQ : ESEA) ( "Euroseas" or the "Company"), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes ...
Should You Follow This Trend For Euroseas Ltd (ESEA)?
Simply Wall St - Oct 16, 2017
Euroseas Ltd's' (ESEA) is one of Greece's large-cap stocks operating in the US Marine industry. ESEA saw some insider buying over the past three months, with insiders investing in 200,012 shares during this period.
$-0.11 EPS Expected for Euroseas Ltd. (ESEA) - BZ Weekly
Critical Analysis: Euroseas (ESEA) and The Competition - StockNewsTimes
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).
What's Euroseas Limited Marshall Islands (NASDAQ:ESEA) Upside After This Short ...
Weekly Register - 37 minutes ago
The stock of Euroseas Limited Marshall Islands (NASDAQ:ESEA) registered a decrease of 5.94% in short interest. ESEA's total short interest was 484,700 shares in October as published by FINRA.
Euroseas Ltd. Announces Availability of 2016 Annual Report on Form 20-F
Marketwired (press release) - Apr 8, 2017
MAROUSSI, ATHENS, GREECE--(Marketwired - Apr 7, 2017) - Euroseas Ltd. ( NASDAQ : ESEA) (the "Company"), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, ...
Euroseas Ltd. Announces Delivery of Newbuilding Ultramax Drybulk Carrier
Hellenic Shipping News Worldwide - Jan 17, 2017
Euroseas Ltd., an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that it took delivery of the previously announced acquisition of the ...
Euroseas Ltd. Upgraded By Zacks Investment Research To “BUY”
Hellenic Shipping News Worldwide - Mar 6, 2017
Zacks Investment Research upgraded shares of Euroseas Ltd. from a hold rating to a buy rating in a research note issued to investors on Friday morning.
Euroseas Ltd (ESEA): Following the Numbers
Lockport Press - Oct 19, 2017
Traders might be following the technicals on shares of Euroseas Ltd (ESEA). after a recent check, we have noticed that the PPOH level is currently below zero.
Watching Chart Levels on Euroseas Ltd (ESEA) Shares
The Standard - 1 hour ago
When undertaking stock analysis, investors and traders may choose to view multiple technical levels. Euroseas Ltd (ESEA) currently has a 14-day Commodity Channel Index (CCI) of -40.29.
Euroseas Ltd. (NASDAQ:ESEA) Trading Down – Short Interest decreased by -9.99%
HugoPress - Oct 18, 2017
Investors are a little more bullish on Euroseas Ltd. of late as evidenced by the decrease in short interest. The stock recorded a fall in short interest of -9.99% between September 15, 2017 and September 29, 2017.
Euroseas Ltd. (NASDAQ:ESEA) Shorts Down -9.99% – Shares Trading Down - Modern Readers
Euroseas Ltd. (NASDAQ:ESEA) Trading Down – Short interest fell by -9.99% - First News 24
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.

$1.80 Current Price

$-15.57 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$3.23 Book Price

Undervalued by 79.46%


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 $12.64 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow - -1.98M -37.69M -18.66M -28.16M
divided by
Invested Capital 222.57M 126.40M 139.98M 144.33M 129.31M
Cash ROIC - -1.57% -26.93% -12.93% -21.78%

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 $43.89 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -13.20M -103.42M -17.92M -14.05M -44.22M
divided by
Stockholders' Equity 209.63M 104.70M 100.20M 95.05M 54.11M
Return on Equity -6.30% -98.78% -17.88% -14.78% -81.73%

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
2007200820092010201120122013201420152016
Free Cash Flow -100.54M 28.88M -54.39M -3.37M 17.32M - -1.98M -37.69M -18.66M -28.16M

Weak Balance Sheet

ESEA's financial position is not ideal. The key is to check whether ESEA is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 107.03M 74.62M 41.42M 34.54M 31.23M 33.37M 11.40M 25.41M 8.72M 3.21M
Current Assets 118.31M 92.54M 58.93M 46.40M 38.88M 45.07M 16.95M 30.85M 21.58M 10.44M
Total Assets 371.19M 340.62M 323.42M 321.68M 296.15M 278.31M 156.62M 190.58M 172.41M 143.69M
Current Liabilities 35.18M 21.42M 30.44M 25.21M 21.10M 22.37M 18.81M 25.19M 19.37M 11.17M
Total Liabilities 99.40M 76.39M 91.97M 102.98M 84.23M 68.69M 51.91M 90.38M 77.36M 89.59M
Stockholder' Equity 271.79M 264.23M 231.45M 218.69M 211.92M 209.63M 104.70M 100.20M 95.05M 54.11M
Current Ratio 3.36 4.32 1.94 1.84 1.84 2.01 0.90 1.22 1.11 0.93
TL-to-TA 0.27 0.22 0.28 0.32 0.28 0.25 0.33 0.47 0.45 0.62

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
2007200820092010201120122013201420152016
Retained Earnings 39.73M 28.74M -5.06M -18.52M -25.86M -43.49M -148.98M -168.34M -184.03M -229.98M
Retained Earnings Growth - -27.66% -117.61% -265.86% -39.65% -68.20% -242.56% -12.99% -9.32% -24.97%

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
2007200820092010201120122013201420152016
Net Income 40.66M 23.67M -15.63M -6.61M 1.12M -13.20M -103.42M -17.92M -14.05M -44.22M
divided by
Revenue 82.08M 126.30M 63.78M 52.48M 61.40M 55.16M 39.15M 40.63M 37.68M 28.42M
Net Profit Margin 49.54% 18.74% -24.50% -12.59% 1.82% -23.93% -264.15% -44.10% -37.28% -155.58%

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.

$44.56 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
2007200820092010201120122013201420152016
Gross Profit 63.94M 95.69M 36.69M 22.84M 31.22M 27.14M 8.61M 9.42M 8.25M 6.77M
divided by
Revenue 82.08M 126.30M 63.78M 52.48M 61.40M 55.16M 39.15M 40.63M 37.68M 28.42M
Gross Margin 77.90% 75.76% 57.52% 43.52% 50.85% 49.20% 21.98% 23.17% 21.90% 23.80%

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.

279.72% 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
2007200820092010201120122013201420152016
Capital Expenditure 149.50M 45.40M 62.22M 16.12M - - 6.02M 36.96M 16.63M 27.33M
divided by
Net Income 40.66M 23.67M -15.63M -6.61M 1.12M -13.20M -103.42M -17.92M -14.05M -44.22M
Capital Expenditure Ratio 367.65% 191.79% -398.17% -244.05% - - -5.82% -206.27% -118.37% -61.80%

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
2007200820092010201120122013201420152016
Dividend Paid 20.28M 34.55M 10.85M 6.86M 8.44M 4.45M 2.09M 13,050.00 - -
divided by
Shares Outstanding 21.64M 30.51M 30.65M 30.90M 31.10M 38.95M 45.44M 54.79M 6.41M 8.17M
Dividend Paid Per Share 0.94 1.13 0.35 0.22 0.27 0.11 0.05 0.00 - -
Price at Year End 9.26 3.28 3.42 3.27 2.35 0.86 1.44 0.76 2.60 1.69
Dividend Yield 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
2007200820092010201120122013201420152016
Shares Outstanding 21.64M 30.51M 30.65M 30.90M 31.10M 38.95M 45.44M 54.79M 6.41M 8.17M
Stock Bought Back - -29.05% -0.47% -0.81% -0.66% -20.14% -14.29% -17.07% 754.72% -21.49%
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