One-glance verdict
Undervalued
$268.70 our estimate vs market $65.07
Wall Street consensus: $91.75 (-65.9% lower than our fair-value estimate)
76% below our estimate, below the bear case
Fundamentals snapshot
Euroseas Ltd.
ESEA · NCM · Industrials · Marine Shipping
Current price
$65.07
52-week range
$51.00 - $79.67
Market cap
$459.09M
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 86.8% above its 5-year average P/E.
- Risk Forward P/E (3.8x) is higher than trailing (3.3x) - earnings are expected to drop.
What this company does
Euroseas Ltd.
Euroseas Ltd. is a shipping company that owns and operates container ships, like big trucks on the sea, to move goods all around the world. They make their money by charging customers to rent these ships for transport, similar to how a trucking company charges for moving freight. This matters because global trade relies on shipping to get products from where they are made to where they are sold, and Euroseas plays a part in that movement.
How the company got here
Euroseas Ltd. has a shipping legacy that stretches back over 140 years, with its roots in the Pittas family's seafaring business that began in the 19th century. The modern company was officially formed in May 2005 to bring together the family's ship-owning interests. It went public on the NASDAQ Capital Market in 2005, allowing it to grow and acquire more vessels. A significant move was the spin-off of its drybulk fleet into a separate company, EuroDry Ltd., in 2018, allowing Euroseas to concentrate solely on its container shipping business. More recently, the company has been strategically separating parts of its fleet to focus on different types of vessels and investment strategies, aiming for better valuations and distinct growth paths for each segment.
What it actually does
Euroseas Ltd. is in the business of moving goods across the ocean. Think of them as a trucking company, but for international trade, using large ships instead of trucks. They own and operate a fleet of container ships that carry all sorts of products, from manufactured goods to perishable items like food, packed in standardized containers. These ships are essentially floating warehouses that transport these containers between different ports around the world, playing a crucial role in the global supply chain.
Containerships
This is the core business of Euroseas, where they own and operate container ships. These vessels are designed to carry standardized shipping containers, which are used to transport a vast array of goods globally. Euroseas operates two main types of container ships: 'Feeder' containerships, which are smaller and typically transport containers from larger ports to smaller ones, and 'Intermediate' containerships, which are larger and can carry more containers over longer distances. The company earns money by chartering these ships, meaning they rent them out to other companies for a set period or on a voyage-by-voyage basis. These charters can be for short terms (spot market) or longer terms (period charters), with longer charters providing more predictable income but potentially less profit if shipping rates rise significantly.
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 $268.70 vs current price $65.07
Wall Street consensus is the average analyst price target: $91.75 (-65.9% lower than our fair-value estimate).
Our most-likely fair value is $268.70 a share — about 312.9% above today's price of $65.07, 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 86.8% above its 5-year average P/E.
-
Forward P/E (3.8x) is higher than trailing (3.3x) - 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)
3.33x
Forward P/E
3.75x
P/B
0.88x
P/S
2.03x
EV/EBITDA
2.97x
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
19.52
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
4.9%
Payout ratio
15.1%
Last ex-div date
2026-09-09