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

Euroseas Ltd.

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Safe Bulkers, Inc.

Diana Shipping, Inc.

Tsakos Energy Navigation Ltd.

Ardmore Shipping Corp.

Teekay Corp.

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 32.61% and Operating profit at 99.41%

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at USD 137.98 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 16.45%
RAW MATERIAL COST(Y) Fallen by 0.24% (YoY)

With ROE of 28.23%, it has a very attractive valuation with a 1.09 Price to Book Value

Over the past year, while the stock has generated a return of 119.50%, its profits have risen by 7.9% ; the PEG ratio of the company is 0.5

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 2.07% over the previous quarter and collectively hold 14.4% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Market Beating performance in long term as well as near term

Along with generating 119.50% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

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.

121.88%

1.59

42.77%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.61%

EBIT Growth (5y)

99.41%

EBIT to Interest (avg)

13.75

Debt to EBITDA (avg)

1.71

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.41

Tax Ratio

Dividend Payout Ratio

14.81%

Pledged Shares

Institutional Holding

14.40%

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

1.09

EV to EBIT

4.75

EV to EBITDA

3.83

EV to Capital Employed

1.07

EV to Sales

2.60

PEG Ratio

0.49

Dividend Yield

4.21%

ROCE (Latest)

22.54%

ROE (Latest)

28.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly 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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 137.98 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 16.45%

RAW MATERIAL COST(Y)

Fallen by 0.24% (YoY

CASH AND EQV(HY)

Highest at USD 212.47 MM

DEBT-EQUITY RATIO (HY)

Lowest at 27.1 %

INVENTORY TURNOVER RATIO(HY)

Highest at 29.99 times

DIVIDEND PER SHARE(HY)

Highest at USD 29.93

-7What is not working for the Company

INTEREST(HY)

At USD 7.66 MM has Grown at 44.19%

ROCE(HY)

Lowest at 31.33%

Here's what is working for Euroseas Ltd.

Operating Cash Flow

Highest at USD 137.98 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 212.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 27.1 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 29.99 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 29.93

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 16.45%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.24% (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.

Interest

At USD 7.66 MM has Grown at 44.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)