Euroseas Ltd. (ESEA)
Valuation Overview•Is Euroseas Ltd. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
High-quality fundamentals with a strong composite quality score of 92/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Elite compounder with fortress-level fundamentals across every core pillar.
Wall Street sentiment is generally neutral. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
ESEA exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is paired with a moderately leveraged but stable balance sheet.
The company demonstrates solid revenue growth (7.6% 3Y CAGR) paired with robust earnings compounding (10.1% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 58.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $55.8M | +7.0% | +7.6% | +33.7% | +19.7% | |
| EBITDA | $40.7M | — | +8.2% | — | — | |
| Net Income | $32.5M | +21.5% | +8.8% | — | — | |
| EPS (Diluted) | $4.65 | +21.7% | +10.1% | — | — | |
| Free Cash Flow | $28.6M | +226.3% | +39.9% | +105.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 65.3% | 62.2% | 61.0% | 37.4% |
| Operating Margin | 58.9% | 58.8% | 56.7% | 22.8% |
| Net Margin | 58.3% | 57.9% | 55.5% | 4.0% |
| FCF Margin | 47.6% | 4.5% | 0.7% | -38.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $4.29 | $4.70 | +9.6% | ||
| Q1'26 | $4.47 | $4.48 | +0.2% | ||
| Q4'25 | $4.40 | $4.23 | -3.9% | ||
| Q2'25 | $3.35 | $3.76 | +12.2% | ||
| Q2'25 | $3.41 | $2.66 | -22.0% | ||
| Q1'25 | $3.66 | $3.33 | -9.0% | ||
| Q4'24 | $3.55 | $3.92 | +10.4% | ||
| Q3'24 | $2.82 | $4.17 | +47.9% |
Total return is +58.0% (1Y), outperforming the benchmark by +33.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +29.4% | +20.1% | — |
| 1Y | +58.0% | +33.0% | +7.9% |
| 3YCAGR | +62.2% | +42.6% | +42.8% |
| 5YCAGR | +31.4% | +19.6% | +50.5% |
| 10YCAGR | +19.1% | +6.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Euroseas Ltd. (ESEA) valuation, health, and returns.
Based on peer relative multiples, Euroseas Ltd. appears Cheap versus peers compared to industry peers.
Euroseas Ltd. has multiple valuation anchors: Peer Relative Fair Value: $92.44. A convergence of these signals offers higher conviction.
Euroseas Ltd. displays excellent financial health with a composite quality score of 92/100, supported by a Altman Z-Score of 2.5 (grey zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 19.5%.
Euroseas Ltd. pays a 4.0% dividend yield, covered by a 14% payout ratio with 3 years of growth, supplemented by a 0.4% buyback yield.
Euroseas Ltd.'s current growth trajectory is Stable. The company achieved +7.0% 1Y revenue growth and +21.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +7.6%.
Wall Street consensus is Buy based on 5 analysts, beating EPS expectations in 58% of recent quarters with a 2-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Euroseas Ltd. include: -19.3% 1-year max drawdown, high beta (1.32x market volatility). Volatility risk is characterized by a beta of 1.32x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.