Euroseas Ltd. Fundamental Analysis
Euroseas Ltd. (ESEA) shows strong financial fundamentals with a PE ratio of 3.52, profit margin of 58.31%, and ROE of 29.71%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 7.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ESEA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentESEA demonstrates superior asset utilization.
Valuation Score
ExcellentESEA trades at attractive valuation levels.
Growth Score
ExcellentESEA delivers strong and consistent growth momentum.
Financial Health Score
ExcellentESEA maintains a strong and stable balance sheet.
Profitability Score
ExcellentESEA achieves industry-leading margins.
Key Financial Metrics
Is ESEA Expensive or Cheap?
P/E Ratio
ESEA trades at 3.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ESEA's PEG of 1.60 indicates fair valuation.
Price to Book
The market values Euroseas Ltd. at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.41 times EBITDA. This is generally considered low.
How Well Does ESEA Make Money?
Net Profit Margin
For every $100 in sales, Euroseas Ltd. keeps $58.31 as profit after all expenses.
Operating Margin
Core operations generate 58.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.71 in profit for every $100 of shareholder equity.
ROA
Euroseas Ltd. generates $18.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Euroseas Ltd. generates strong operating cash flow of $140.18M, reflecting robust business health.
Free Cash Flow
Euroseas Ltd. generates strong free cash flow of $109.62M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.54 in free cash annually.
FCF Yield
ESEA converts 22.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How ESEA Stacks Against Its Sector Peers
| Metric | ESEA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.52 | 25.90 | Better (Cheaper) |
| ROE | 29.71% | 1248.00% | Weak |
| Net Margin | 58.31% | -35020.00% (disorted) | Strong |
| Debt/Equity | 0.43 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 5.46 | 9.99 | Strong Liquidity |
| ROA | 18.34% | -1489331.00% (disorted) | Strong |
ESEA outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Euroseas Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
254.25%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
2708.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
4714.03%
Industry Style: Cyclical, Value, Infrastructure
High Growth