Euroseas Ltd. (ESEA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ardmore Shipping Corp.

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Safe Bulkers, Inc.

Diana Shipping, Inc.

Euroseas Ltd.

StealthGas, Inc.

Overseas Shipholding Group, Inc.

Teekay Corp.

KNOT Offshore Partners LP

Capital Product Partners LP

Eagle Bulk Shipping, Inc.

Why is Euroseas Ltd. ?

High Management Efficiency with a high ROCE of 26.80%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.75

Healthy long term growth as Net Sales has grown by an annual rate of 33.72% and Operating profit at 97.91%

Positive results in Mar 26

INTEREST COVERAGE RATIO(Q) Highest at 1,352.83
DIVIDEND PER SHARE(HY) Highest at USD 23.24
RAW MATERIAL COST(Y) Fallen by -12.15% (YoY)

With ROE of 29.55%, it has a attractive valuation with a 0.92 Price to Book Value

Over the past year, while the stock has generated a return of 45.08%, its profits have risen by 21.4% ; the PEG ratio of the company is 0.1

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 0.64% over the previous quarter and collectively hold 15.04% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Returns over the last 3 years

Along with generating 45.08% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Euroseas Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Euroseas Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Euroseas Ltd.

45.08%

2.13

45.80%

S&P 500

21.51%

1.63

13.19%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

33.72%

EBIT Growth (5y)

97.91%

EBIT to Interest (avg)

13.75

Debt to EBITDA (avg)

1.71

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.39

Tax Ratio

Dividend Payout Ratio

13.69%

Pledged Shares

Institutional Holding

15.04%

ROCE (avg)

26.80%

ROE (avg)

40.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.92

EV to EBIT

3.58

EV to EBITDA

2.94

EV to Capital Employed

0.93

EV to Sales

2.04

PEG Ratio

0.14

Dividend Yield

4.61%

ROCE (Latest)

25.82%

ROE (Latest)

29.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,352.83

DIVIDEND PER SHARE(HY)

Highest at USD 23.24

RAW MATERIAL COST(Y)

Fallen by -12.15% (YoY

CASH AND EQV(HY)

Highest at USD 370.92 MM

DEBT-EQUITY RATIO (HY)

Lowest at 3.6 %

OPERATING PROFIT(Q)

Highest at USD 40.71 MM

OPERATING PROFIT MARGIN(Q)

Highest at 72.92 %

-5What is not working for the Company

ROCE(HY)

Lowest at 30.55%

INVENTORY TURNOVER RATIO(HY)

Lowest at 24.86 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 23.24 times

NET SALES(Q)

Lowest at USD 55.84 MM

Here's what is working for Euroseas Ltd.

Interest Coverage Ratio

Highest at 1,352.83 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 23.24 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 40.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 72.92 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 370.92 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 3.6 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -12.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Euroseas Ltd.

Net Sales

Lowest at USD 55.84 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Inventory Turnover Ratio

Lowest at 24.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 23.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio