Euroseas Ltd (ESEA)
NASDAQ:ESEA
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Euroseas
(NASDAQ:ESEA)
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Rating:76Outperform
Price Target:
$74.00
▲(2.52% Upside)
Action:Reiterated
Date:05/23/26
The score is driven primarily by strong financial performance and an exceptionally attractive valuation (very low P/E plus a solid dividend yield). The earnings call supports the thesis with strong contract coverage and capital returns, while the main drags are cyclicality signals (TTM revenue decline), sizable future capex/financing requirements, and only mixed near-term technicals.
Positive Factors
High profitability & adjusted earnings
Euroseas has delivered materially improved adjusted earnings and strong net income, indicating durable margin strength in its operating model. Sustained high EBITDA and adjusted EPS growth support long‑term cash generation capacity and provide runway for dividends and buybacks, not just one‑off gains.
Negative Factors
Large upcoming capex and equity needs
The $500M+ newbuilding program requires substantial external financing and likely significant equity contributions (> $200M implied), creating execution risk. If capital markets tighten or rates rise, dilution or higher funding costs could pressure returns and constrain capital returns or opportunistic M&A.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & adjusted earnings
Euroseas has delivered materially improved adjusted earnings and strong net income, indicating durable margin strength in its operating model. Sustained high EBITDA and adjusted EPS growth support long‑term cash generation capacity and provide runway for dividends and buybacks, not just one‑off gains.
Read all positive factors
Euroseas (ESEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$465.69M
Dividend Yield4.95%
Average Volume (3M)67.78K
Price to Earnings (P/E)3.5
Beta (1Y)1.06
Revenue Growth2.17%
EPS Growth2.19%
CountryUS
Employees365
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)19.09
Shares Outstanding7,055,881
10 Day Avg. Volume93,752
30 Day Avg. Volume67,783
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 Cap1.09
Enterprise Value/Revenue2.23
Enterprise Value/Gross Profit3.41
Enterprise Value/Ebitda2.93
Forecast
1Y Price Target
$88.67Price Target Upside22.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)16.74
Revenue Forecast (FY)$226.97M
Euroseas Business Overview & Revenue Model
Company Description
Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables. As of May 03, 2022, it h...
How the Company Makes Money
Euroseas makes money primarily by earning charter revenue from leasing its container ships to third parties under charter agreements. Under time charter contracts, a customer pays a negotiated daily (or periodic) hire rate for the use of a vessel ...
Euroseas Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlighted solid operational and financial performance (strong adjusted earnings, higher adjusted EBITDA, 100% utilization, rising TCEs, low breakeven, increased dividend and renewed buyback) and emphasized a disciplined growth path via newbuilds and selective JV activity. Key risks noted include a slight year‑over‑year decline in reported revenue and net income, higher operating costs, mark‑to‑market losses, substantial future capex needs for the expanded newbuilding program and industry‑wide delivery risk in 2027 that could pressure markets. On balance the positives (robust cash flow visibility, strong contract coverage, improved adjusted metrics, strong liquidity and NAV premium to market price) outweigh the challenges, though execution and market timing on the newbuilding program and future refinancing remain important to monitor.Positive Updates
Strong Profitability and Adjusted Earnings Growth
Net income of $32.52 million ($4.65 diluted EPS) for Q1 2026; adjusted net income $32.87 million ($4.70 diluted EPS). Adjusted EPS increased materially versus Q1 2025 (adjusted EPS Q1 2026 $4.70 diluted vs $3.76 in Q1 2025, ~+25%).
Negative Updates
Slight Revenue Decline
Total net revenues of $55.84 million in Q1 2026, a decrease of ~1% versus $56.4 million in Q1 2025, primarily due to operating three fewer vessels during the period.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and Adjusted Earnings Growth
Net income of $32.52 million ($4.65 diluted EPS) for Q1 2026; adjusted net income $32.87 million ($4.70 diluted EPS). Adjusted EPS increased materially versus Q1 2025 (adjusted EPS Q1 2026 $4.70 diluted vs $3.76 in Q1 2025, ~+25%).
Read all positive updates
Company Guidance
Management reiterated strong near-term revenue visibility and capital return plans: Q1 2026 results included net revenues $55.8M, net income $32.5M ($4.65 diluted EPS; adjusted EPS $4.70) and adjusted EBITDA ~$40.9M; the Board approved a $0.80 quarterly dividend (+6.7% q/q; ~5% annualized yield) and renewed the $20M buyback (480,500 shares repurchased, ~6.8% of shares, ~$11.4M deployed). Fleet and commercial guidance: operating fleet 21 vessels (~61,000 TEU, avg age ~13y) with no idle days, average TCE $30,354/day and 100% utilization in Q1; management said ~96% of 2026 voyage days are secured at ~$30,150/day (CFO cited contract coverage ~92% for 2026, ~75% for 2027 and ~43% for 2028), 86% of 2027 at ~$31,000/day and ~50% of 2028 at ~$31,500/day; two charters: EM Kea 36–38 months at $30,000/day and EM Spetses 22–24 months at $21,500/day. Growth and financing: 10 newbuilds on order (after adding 4), pipeline cost >$500M (advances ~$45M), two 2,800 TEU methanol‑ready ships (~$93M) and two 1,800 TEU reefers (~$64.5M) with targeted 60–65% leverage (management expects ~55–60% debt financing overall), JV sale of 49% of one intermediate ship for ~$12.2M (delivery Q1 2028, ≥60% debt). Balance sheet and breakevens: cash/current assets ~$218M, total debt $213.3M (avg margin ~2%; implied cost ~5.65% with SOFR 3.65%), book assets $722.7M, estimated fleet market value ~$675M and NAV ~$706M (~$100/share vs close $71, ~30% discount); daily cash‑flow breakeven ~$12.3–12.8k/vessel/day and operating opex ~$7,889/day.Euroseas Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 227.36M | 227.87M | 212.90M | 189.36M | 182.69M | 93.89M |
| Gross Profit | 148.47M | 144.75M | 127.33M | 119.86M | 114.52M | 52.23M |
| EBITDA | 172.42M | 158.56M | 149.76M | 143.82M | 129.84M | 52.95M |
| Net Income | 132.57M | 136.97M | 112.78M | 114.55M | 106.24M | 42.96M |
Balance Sheet | ||||||
| Total Assets | 722.68M | 700.46M | 591.22M | 424.67M | 328.59M | 221.51M |
| Cash, Cash Equivalents and Short-Term Investments | 193.89M | 177.02M | 73.74M | 58.61M | 25.85M | 26.53M |
| Total Debt | 211.54M | 216.81M | 205.40M | 130.00M | 107.23M | 118.04M |
| Total Liabilities | 231.99M | 237.01M | 228.27M | 158.10M | 160.44M | 144.74M |
| Stockholders Equity | 490.69M | 463.44M | 362.95M | 266.58M | 168.16M | 76.77M |
Cash Flow | ||||||
| Free Cash Flow | 108.16M | 64.08M | -50.76M | 17.71M | 23.39M | -21.49M |
| Operating Cash Flow | 138.33M | 141.13M | 128.17M | 130.01M | 114.08M | 52.63M |
| Investing Cash Flow | -21.19M | -15.20M | -168.77M | -102.19M | -87.13M | -74.11M |
| Financing Cash Flow | -51.32M | -23.28M | 56.96M | 5.06M | -27.01M | 46.65M |
Euroseas Technical Analysis
Positive
72.18
Price Trends
68.52
Negative
64.27
Positive
60.86
Positive
Market Momentum
-1.08
Positive
46.74
Neutral
34.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESEA, the sentiment is Positive. The current price of 72.18 is above the 20-day moving average (MA) of 68.26, above the 50-day MA of 68.52, and above the 200-day MA of 60.86, indicating a neutral trend. The MACD of -1.08 indicates Positive momentum. The RSI at 46.74 is Neutral, neither overbought nor oversold. The STOCH value of 34.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $357.73M | 5.73 | 9.08% | ― | 3.73% | -10.22% | |
76 Outperform | $465.69M | 3.49 | 29.70% | 4.95% | 2.17% | 2.19% | |
71 Outperform | $1.08B | 63.98 | <0.01% | 4.04% | 2.22% | -63.61% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $326.21M | 8.73 | 14.03% | 4.94% | 15.24% | 41.39% | |
61 Neutral | $664.59M | 17.25 | 4.68% | 4.16% | -10.37% | -64.20% | |
52 Neutral | $289.08M | 5.96 | 8.69% | 2.34% | -5.39% | 393.65% |
* Industrials Sector Average
ESEA
Euroseas
66.43
27.13
69.03%
DSX
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2.34
0.84
56.42%
GNK
Genco Shipping
24.69
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93.22%
SB
Safe Bulkers
6.50
2.85
78.03%
SHIP
Seanergy Maritime
15.45
9.22
147.91%
GASS
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9.62
3.37
53.92%
Euroseas Corporate Events
Euroseas Posts Strong Q1 2026 Results, Hikes Dividend and Extends Buyback
May 21, 2026
On May 21, 2026, Euroseas reported first-quarter 2026 results, posting total net revenues of $55.8 million and net income of $32.5 million, with an average of 21 vessels earning time charter equivalent rates of $30,354 per day. The company declare...
Euroseas Expands Feeder Containership Newbuilding Program With Four-Vessel Order
Apr 30, 2026
On April 30, 2026, Euroseas Ltd. announced it had signed contracts to build four additional feeder containerships, expanding its ongoing newbuilding program. The order covers two specialized 2,800 teu high-reefer vessels at Huanghai Shipbuilding i...
Euroseas Extends EM Kea Charter for Three Years at Higher Rate
Apr 23, 2026
On April 15, 2026, Euroseas announced it has secured a three-year extension for the time charter of its 2007-built 3,100 teu feeder containership EM Kea at a gross daily rate of $30,000, starting July 14, 2026 in direct continuation of its current...
Euroseas Orders Two High-Reefer Containerships in $92 Million Fleet Expansion
Mar 17, 2026
On March 17, 2026, Euroseas Ltd. said it has ordered two specialized 2,800 TEU, high-reefer containerships from Huanghai Shipbuilding in China, with deliveries scheduled for June and August 2028. Each ship, priced at about $46.35 million and finan...
Euroseas Delivers Robust 2025 Results, Lifts Dividend as Charter Coverage Underpins Outlook
Feb 27, 2026
Euroseas reported strong results for the fourth quarter and full year 2025, released on February 25, 2026, highlighting total net revenues of $57.4 million and net income of $40.5 million for the quarter, with an average of 21.22 vessels earning t...
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.