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1. Company Snapshot

1.a. 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 had a fleet of 18 vessels, including 10 feeder and 8 intermediate containerships with a cargo capacity of approximately 58,871 twenty-foot equivalent unit (teu).The company was incorporated in 2005 and is based in Marousi, Greece.

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1.b. Last Insights on ESEA

The recent 3-month performance of Euroseas Ltd. was negatively impacted by the company's Q4 2024 earnings miss, where it reported $3.33 per share, missing the Zacks Consensus Estimate of $3.66 per share. The earnings miss was a significant setback for the company, which had been experiencing increased operational efficiency and charter income. Additionally, the company's cash flow has been a concern, with some analysts questioning its ability to sustain its growth engine.

1.c. Company Highlights

2. Euroseas Ltd. Delivers Strong Q3 2025 Results Amidst Favorable Market Conditions

Euroseas Ltd. reported a robust financial performance for the third quarter of 2025, with total net revenues increasing by 5.1% to $56.9 million compared to the same period last year. The company's net income stood at $29.7 million, while adjusted EBITDA reached $38.8 million. Earnings per share (EPS) were $4.23, slightly below the estimated $4.4. The company's financial performance was backed by a 10.7% higher average charter rate in the third quarter of this year compared to last year, as highlighted by CFO Anastasios Aslidis.

Publication Date: Nov -24

📋 Highlights
  • Revenue Growth:: Q3 2025 net revenues rose 5.1% to $56.9 million YoY, driven by higher charter rates (up 10.7%) and strong fleet performance.
  • Fleet Chartering:: Extended 4 new vessel charters at $35,500/day for 4 years and secured 75% 2026 contract coverage at $1,300/day average rate.
  • Financial Performance:: Q3 adjusted EBITDA hit $38.8 million (+20.3% YoY), with 9M 2025 net income up 9% to $96.5 million and diluted EPS at $13.90.
  • Newbuild Strategy:: $200 million remaining for 4 intermediate vessels under construction, with 30% 2028 coverage at $35,000/day and $65 million debt per 2 newbuilds in 2027-2028.

Operational Highlights

The company's fleet consists of 21 vessels with a total carrying capacity of 61,000 TEU, and it has 4 intermediate vessels under construction. Euroseas Ltd. extended the charter for motor vessel Jonathan P for 11 months at $25,000 per day and chartered 4 new vessels for 4 years at $35,500 per day. The vessel Emmanuel P successfully completed its dry docking, with the installation of energy-saving devices expected to deliver fuel savings of over 20%.

Market Outlook and Contract Coverage

The global containerized trade growth is expected to decline to 0.7% in 2026 and 6% in 2027. Euroseas Ltd. has a robust forward coverage, with 75% of its volume secured at an average rate of $35,000 per day for 2026, and 30% of its volume secured at an average rate of $35,000 per day for 2028. The company's contract coverage is strong, but it expects a potential increase in supply in 2027 due to accelerated containership ordering.

Valuation and Financial Health

Euroseas Ltd.'s current valuation metrics indicate a P/E Ratio of 3.33, P/B Ratio of 0.94, and an EV/EBITDA of 3.21. The company's ROE stands at 30.77%, and its ROIC is 20.45%. With a Net Debt / EBITDA ratio of 0.71, Euroseas Ltd.'s debt profile appears manageable. The company's charter-adjusted market value of its fleet is significantly higher than their book value, with a net asset value for the company of about $595 million or roughly $85 per share.

Future Prospects and Challenges

The company's newbuilds are booked well forward, with charters for 4,400 TEU plus at $35,000 per day. Euroseas Ltd. is confident in its ability to maintain a strong market position, with a breakeven rate that is well below the current market rates. However, the company faces potential challenges due to the expected increase in supply in 2027. Analysts estimate next year's revenue growth at -1.0%, indicating a potential slowdown in the company's growth trajectory.

3. NewsRoom

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Euroseas Ltd. (ESEA) Q3 2025 Earnings Call Transcript

Nov -18

Source: seekingalpha.com

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Euroseas Ltd. (ESEA) Lags Q3 Earnings and Revenue Estimates

Nov -18

Source: zacks.com

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Euroseas Ltd. Reports Results for the Quarter and Nine-Month Period Ended September 30, 2025, Declares Quarterly Dividend and Announces Multi-Year Forward Charters for Five of Its Vessels Including its Four Vessels Under Construction

Nov -18

Source: globenewswire.com

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Euroseas (ESEA) Forms 'Hammer Chart Pattern': Time for Bottom Fishing?

Oct -08

Source: zacks.com

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Euroseas: Same Thesis, Equally Attractive Return Prospects Ahead

Sep -29

Source: seekingalpha.com

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TEN vs. ESEA: Which Shipping Company is a Stronger Play Now?

Sep -26

Source: zacks.com

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Euroseas: Outperformance Matched By Strong Fundamentals, Maintaining Strong Buy

Sep -21

Source: seekingalpha.com

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Is Euroseas (ESEA) Outperforming Other Transportation Stocks This Year?

Sep -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.73%)

6. Segments

Container Carriers

Expected Growth: 4.73%

Euroseas Ltd.'s 4.73% growth in Container Carriers is driven by increasing global trade, rising demand for containerized cargo, and a growing need for efficient transportation solutions. Additionally, the company's strategic fleet expansion, cost-cutting initiatives, and improving operational efficiency also contribute to its growth momentum.

7. Detailed Products

Container Ships

Euroseas Ltd. operates a fleet of container ships that provide transportation services for cargo containers across the globe.

Dry Bulk Carriers

The company's dry bulk carriers transport dry commodities such as iron ore, coal, and grains.

Tankers

Euroseas Ltd.'s tanker fleet transports petroleum products, such as crude oil and refined petroleum products.

Ship Management Services

The company offers ship management services, including technical management, crew management, and commercial management.

Vessel Acquisition and Disposal

Euroseas Ltd. provides services for buying and selling vessels, including market research, valuation, and negotiation.

8. Euroseas Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Euroseas Ltd. is medium due to the availability of alternative shipping options, but the company's specialized services and long-term contracts reduce the likelihood of customers switching to substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the shipping industry, which reduces their negotiating power, and Euroseas Ltd.'s strong relationships with its customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the limited number of suppliers of specialized shipping equipment and services, but Euroseas Ltd.'s large scale of operations and long-term contracts reduce their bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the shipping industry, including significant capital requirements and regulatory hurdles, which make it difficult for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the shipping industry, with many established players competing for market share, and the need for Euroseas Ltd. to differentiate itself through its services and operations.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.78%
Debt Cost 4.95%
Equity Weight 67.22%
Equity Cost 8.46%
WACC 7.31%
Leverage 48.77%

11. Quality Control: Euroseas Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Danaos

A-Score: 7.1/10

Value: 8.5

Growth: 6.4

Quality: 7.6

Yield: 6.9

Momentum: 5.5

Volatility: 7.7

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Euroseas

A-Score: 7.0/10

Value: 7.6

Growth: 8.2

Quality: 7.8

Yield: 8.1

Momentum: 8.5

Volatility: 1.7

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Ernst Russ

A-Score: 6.2/10

Value: 8.4

Growth: 9.6

Quality: 8.8

Yield: 3.1

Momentum: 5.5

Volatility: 2.0

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MPC Container Ships

A-Score: 6.2/10

Value: 8.6

Growth: 6.9

Quality: 7.8

Yield: 10.0

Momentum: 1.5

Volatility: 2.3

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d'Amico Shipping

A-Score: 5.8/10

Value: 7.8

Growth: 7.9

Quality: 6.7

Yield: 9.4

Momentum: 0.5

Volatility: 2.7

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Höegh Autoliners

A-Score: 5.1/10

Value: 8.4

Growth: 2.0

Quality: 7.3

Yield: 10.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

61.78$

Current Price

61.78$

Potential

-0.00%

Expected Cash-Flows