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Euroseas
(NASDAQ:ESEA)
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Rating:79Outperform
Price Target:
$76.00
â–²(2.11% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong underlying financial profitability and an exceptionally attractive valuation (low P/E plus ~4% dividend yield). Earnings call commentary supports the outlook via high forward charter coverage and ongoing capital returns, but is tempered by funding/refinancing needs tied to the large newbuild program and cyclical rate risks. Technical indicators are mixed and therefore less supportive near term.
Positive Factors
Strong charter coverage
High contracted coverage across the next several years gives Euroseas substantial earnings visibility and reduces immediate dependence on volatile spot charter rates. The new long-duration fixture also supports predictable vessel utilization and cash generation through a meaningful portion of the cycle.
Negative Factors
Large future equity requirement
The newbuilding pipeline can expand capacity, but the remaining equity requirement is substantial relative to the company’s current capital base. Future equity calls or other funding actions could dilute shareholders, constrain distributions and make execution dependent on capital-market access.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong charter coverage
High contracted coverage across the next several years gives Euroseas substantial earnings visibility and reduces immediate dependence on volatile spot charter rates. The new long-duration fixture also supports predictable vessel utilization and cash generation through a meaningful portion of the cycle.
Read all positive factors
Euroseas (ESEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$438.28M
Dividend Yield4.58%
Average Volume (3M)38.53K
Price to Earnings (P/E)3.4
Beta (1Y)0.92
Revenue Growth2.53%
EPS Growth14.22%
CountryUS
Employees365
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)19.54
Shares Outstanding6,574,921
10 Day Avg. Volume32,465
30 Day Avg. Volume38,527
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.82
Price to Sales (P/S)1.66
P/FCF Ratio5.92
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue2.12
Enterprise Value/Gross Profit3.21
Enterprise Value/Ebitda2.77
Forecast
1Y Price Target
$90.00Price Target Upside20.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)17.91
Revenue Forecast (FY)$226.21M
Euroseas Business Overview & Revenue Model
Company Description
Euroseas Ltd. specializes in comprehensive global ocean transportation. The company manages and operates a fleet of containerships, facilitating the international movement of a diverse range of containerized goods, encompassing both dry and refrig...
How the Company Makes Money
Euroseas primarily makes money by earning charter revenue from its container ships. Its main revenue stream is time charter income, where a customer (the charterer) hires a vessel for a specified period at an agreed daily rate; Euroseas supplies t...
Euroseas Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive near‑term operational and financial picture: strong Q2 profitability and EPS gains, improved adjusted EBITDA, very high fleet utilization, attractive forward contract coverage at elevated rates, disciplined capital returns (dividend + buybacks), and a solid liquidity/asset position with NAV upside. Key risks flagged include modest revenue declines tied to a temporarily smaller owned fleet, higher operating/drydocking costs, substantial future equity needs to fund the $560M newbuilding program (~$230M equity required), upcoming balloon debt maturities that may require refinancing, and the potential for market normalization in 2027 as deliveries ramp up. On balance, the highlights noticeably outweigh the lowlights, but investors should monitor capital allocation execution and 2027 supply/demand dynamics.Positive Updates
Strong Q2 Profitability and EPS
Net income attributable to controlling shareholders of $33.2M in Q2 2026 (diluted EPS $4.74). Adjusted net income $32.9M (diluted $4.70). Q2 diluted EPS increased ~10.5% vs Q2 2025 ($4.74 vs $4.29).
Negative Updates
Slight Revenue Decline Due to Fewer Vessels
Total net revenues Q2 2026 $56.5M, down 1.3% vs $57.2M in Q2 2025; H1 2026 revenues $112.3M, down 1.1% vs $113.6M in H1 2025. Declines attributed to a lower average number of vessels owned/operated.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Q2 Profitability and EPS
Net income attributable to controlling shareholders of $33.2M in Q2 2026 (diluted EPS $4.74). Adjusted net income $32.9M (diluted $4.70). Q2 diluted EPS increased ~10.5% vs Q2 2025 ($4.74 vs $4.29).
Read all positive updates
Company Guidance
Euroseas guided that near‑term earnings are well insulated by strong forward cover and a disciplined capital plan: charter coverage of ~96% for 2026, ~81% for 2027 and ~47% for 2028 at average contracted rates of roughly $30.9k/day (2026), $31.7k/day (2027) and $32.3k/day (2028); the company expects to grow from 21 vessels (~61k TEU, avg age 13) to 33 vessels (~97k TEU) after 12 newbuilds (total program ≈ $560M, financed ~60–65% debt, equity need ≈ $230M with $74M paid), while current trading delivers avg TCE ~$30.3k/day (Q2/H1), Q2 net revenues $56.5M, Q2 net income $33.2M ($4.74 diluted), adjusted EBITDA $40.1M (Q2) and $81M (H1), per‑vessel opex ≈ $8.0k/day (Q2), cash‑flow breakeven ≈ $12.2k/day (Q2), liquidity of ~$226M cash/current assets plus $74M advances, bank debt ~$208M (total debt cost ~5.75% with ~2% margin assuming 3.76% SOFR), NAV >$725M (~$103/share), and ongoing shareholder returns including a $0.80/share quarterly dividend (annualized yield ~4.2–4.5%) and a $20M buyback (480k shares, ~6.8%, ~$11.4M repurchased).Euroseas Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 226.63M | 227.87M | 212.90M | 189.36M | 182.69M | 93.89M |
| Gross Profit | 149.65M | 144.75M | 127.33M | 119.86M | 114.52M | 52.23M |
| EBITDA | 173.55M | 180.57M | 149.76M | 143.82M | 129.84M | 52.95M |
| Net Income | 135.93M | 136.97M | 112.78M | 114.55M | 106.24M | 42.96M |
Balance Sheet | ||||||
| Total Assets | 752.95M | 700.46M | 591.22M | 424.67M | 328.59M | 221.42M |
| Cash, Cash Equivalents and Short-Term Investments | 196.90M | 177.02M | 73.74M | 58.61M | 25.85M | 26.70M |
| Total Debt | 206.52M | 216.81M | 205.40M | 130.00M | 107.23M | 118.04M |
| Total Liabilities | 229.07M | 237.01M | 228.27M | 158.10M | 160.44M | 144.56M |
| Stockholders Equity | 518.86M | 463.44M | 362.95M | 266.58M | 168.16M | 76.86M |
Cash Flow | ||||||
| Free Cash Flow | 89.32M | 64.08M | -50.76M | 17.71M | 23.39M | -21.49M |
| Operating Cash Flow | 147.89M | 141.13M | 128.17M | 130.01M | 114.08M | 52.61M |
| Investing Cash Flow | -48.96M | -15.20M | -168.77M | -102.19M | -87.13M | -74.10M |
| Financing Cash Flow | -47.29M | -23.28M | 56.96M | 5.06M | -27.01M | 46.65M |
Euroseas Technical Analysis
Negative
74.43
Price Trends
72.64
Negative
71.47
Negative
66.98
Negative
Market Momentum
-1.69
Positive
37.96
Neutral
17.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESEA, the sentiment is Negative. The current price of 74.43 is above the 20-day moving average (MA) of 69.89, above the 50-day MA of 72.64, and above the 200-day MA of 66.98, indicating a bearish trend. The MACD of -1.69 indicates Positive momentum. The RSI at 37.96 is Neutral, neither overbought nor oversold. The STOCH value of 17.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESEA.
Euroseas Risk Analysis
Euroseas disclosed 87 risk factors in its most recent earnings report. Euroseas reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Euroseas Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $310.81M | 5.07 | 8.47% | 12.69% | -2.03% | -7.58% | |
79 Outperform | $438.28M | 3.41 | 28.60% | 4.58% | 2.53% | 14.22% | |
72 Outperform | $342.14M | 5.52 | 20.72% | 5.57% | 31.98% | 274.58% | |
68 Neutral | $920.91M | 10.42 | 10.32% | 2.90% | 10.81% | 81.30% | |
66 Neutral | $1.12B | 27.99 | 0.02% | 7.02% | 25.64% | 156.91% | |
64 Neutral | $314.77M | 5.20 | 11.56% | 1.58% | -3.68% | 258.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ESEA
Euroseas
66.66
14.20
27.06%
DSX
Diana Shipping
2.53
0.88
53.24%
GNK
Genco Shipping
25.63
10.55
69.96%
SB
Safe Bulkers
8.09
3.77
87.36%
SHIP
Seanergy Maritime
15.79
8.07
104.48%
GASS
StealthGas
8.26
1.76
27.08%
Euroseas Corporate Events
Euroseas Boosts Charter Coverage and Books Major Vessel Sale Gain in October 2026
Oct 19, 2026
On October 19, 2026, Euroseas Ltd. announced it had secured a new time charter for its 2,556 teu feeder containership M/V EM Corfu, built in 2001, for a minimum of 12 to a maximum of 14 months at a gross daily rate of $62,500, commencing after the...
Euroseas Updates Investors with Strong Mid-2026 Results in New Form 6-K Filing
Oct 9, 2026
Euroseas has filed a Form 6-K with the U.S. Securities and Exchange Commission for October 2026, providing management’s discussion and analysis and unaudited interim condensed consolidated financial statements for the six months ended June 3...
Euroseas Secures Two-Year Extension for Feeder Containership M/V Jonathan P
Aug 25, 2026
On August 25, 2026, Euroseas Ltd. announced a two-year extension of the time charter for its 2006-built, 1,740 TEU feeder containership M/V Jonathan P at a gross daily rate of $26,000. The renewed charter, running for a minimum of 24 and up to 26 ...
Euroseas Posts Strong Q2 2026 Results, Raises Dividend and Expands Newbuild Fleet
Aug 14, 2026
Euroseas Ltd., a Greece-based container carrier vessel owner listed on NASDAQ, reported robust financial performance for the quarter and first half ended June 30, 2026. Operating an average of 21 vessels at time charter equivalent rates above $30,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.