One-glance verdict
Undervalued
$216.03 our estimate vs market $75.30
Wall Street consensus: $89.00 (-58.8% lower than our fair-value estimate)
65% below our estimate, below the bear case
Fundamentals snapshot
Euroseas Ltd.
ESEA · NCM · Industrials · Marine Shipping
Current price
$75.30
52-week range
$51.00 - $79.67
Market cap
$531.27M
Balance sheet
Healthy
8.68x Adequate
Net debt $10.28M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 7.0% last year.
- Reward Returns 29.2% on equity, ahead of 80% of its peers.
- Risk Stock trades 116.3% above its 5-year average P/E.
- Risk Forward P/E (4.9x) is higher than trailing (3.9x) - earnings are expected to drop.
What this company does
Euroseas Ltd.
Euroseas is a shipping company that owns and operates a fleet of containerships, which are massive vessels designed to carry goods in large metal boxes. The company makes money by charging fees to other businesses to transport their products, from electronics to perishable food, across the ocean. This business is important because it's a key part of the global supply chain (the entire network of producing and delivering goods), so its performance often reflects the health of international trade.
How the company got here
Euroseas Ltd. was officially formed in 2005, but its roots in the shipping business trace back over 140 years with the Pittas family in Athens, Greece. The company was created to bring together the family's various ship-owning interests under one umbrella. It became a publicly-traded company on the NASDAQ stock exchange, allowing it to raise money from investors to grow its fleet. Over the years, Euroseas has navigated the cyclical nature of the shipping industry by buying, selling, and operating ships to meet global trade demands.
What it actually does
Think of Euroseas as a company that owns and rents out very large boats, specifically container ships. These aren't cruise ships for people, but massive vessels designed to carry standardized metal boxes (containers) filled with goods. Other companies, known as liner operators or charterers, pay Euroseas to use their ships to transport a wide variety of products, from manufactured goods and electronics to perishable foods, across the ocean. Euroseas provides the ships and crew, while their customers are responsible for filling the containers and managing the cargo's journey.
Containership Chartering
This is the company's single and primary way of making money. Euroseas owns a fleet of containerships of different sizes and charters (or leases) them out to other companies that need to transport goods. These rental agreements, called charters, can be for a specific voyage or for a set period of time, providing a steady stream of revenue. The company operates two main types of containerships: 'Feeder' ships, which are smaller and typically move containers between smaller ports and larger hub ports, and 'Intermediate' ships, which are larger and serve a wider range of trade routes.
What management is betting on now
Management's current strategy is focused on expanding and modernizing its fleet of ships. They are investing in new, more fuel-efficient vessels to make their fleet more attractive to customers and to increase their overall cargo-carrying capacity. By carefully timing the purchase of new and secondhand ships, they aim to take advantage of the ups and downs of the shipping market. The company is also focused on securing long-term contracts for its vessels to create predictable cash flow (the money coming in and out of the business) and provide consistent returns to its shareholders (people who own a piece of the company).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$227.87M
Net income
$136.97M
Diluted EPS
19.72
Operating cash flow
$141.13M
Free cash flow
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Sources
Revenue
$212.90M
Net income
$112.78M
Diluted EPS
16.20
Operating cash flow
$128.17M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $216.03 vs current price $75.30
Wall Street consensus is the average analyst price target: $89.00 (-58.8% lower than our fair-value estimate).
Our most-likely fair value is $216.03 a share — about 186.9% above today's price of $75.30, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $10.3M. Interest coverage 8.7x.
Net debt
$10.28M
Interest coverage
8.68x
Euroseas Ltd.'s profit covers its interest bill about 8.7 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ESEA
BASELINE
Euroseas Ltd.
Total debt $206.52M Interest coverage 8.68x This is the baseline the peer rows are being compared against.
Total debt $295.03M Interest coverage 2.09x -76% vs ESEA Carries about 4.1x less debt cushion than ESEA.
Total debt $606.16M Interest coverage 0.95x -89% vs ESEA Carries about 9.1x less debt cushion than ESEA.
Total debt $349.49M Interest coverage 1.58x -82% vs ESEA Carries about 5.5x less debt cushion than ESEA.
Total debt $511.45M Interest coverage 2.15x -75% vs ESEA Carries about 4.0x less debt cushion than ESEA.
What you should know
The case for and against ESEA
3 Rewards
2 Risks
Rewards
-
Revenue grew 7.0% last year.
-
Returns 29.2% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 116.3% above its 5-year average P/E.
-
Forward P/E (4.9x) is higher than trailing (3.9x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
3.86x
Forward P/E
4.90x
P/B
1.02x
P/S
2.34x
EV/EBITDA
3.51x
PEG ratio
6.02x
Profitability
How much profit each dollar creates
Gross margin
77.8%
Operating margin
59.2%
Net margin
60.0%
ROE
29.2%
ROA
11.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.39x
Current ratio
5.46x
Quick ratio
5.34x
Total debt
$206.52M
Total cash
$196.24M
Growth
How the business has been compounding
Revenue TTM
$812.82M
Revenue 5Y CAGR
24.8%
EPS TTM
19.51
EPS 5Y CAGR
10.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$513.39M
Free CF TTM
$64.08M
FCF margin
7.9%
Dividend
Shareholder payout
Yield
4.2%
Payout ratio
18.4%
Last ex-div date
2026-09-09