ESEAEuroseas Ltd.
Is the business good?
The checks split: earnings fully cash-backed (1.5×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 35% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ESEA?
Euroseas Ltd. earns 21% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 12 points above what the capital costs: growth creates value
- Operating margin
- 49%
Operating margin · Marine Shipping median 15% · 12 months to Q4 2021
- Cash conversion
- 1.46×
Cash conversion · 0.33× a year ago · operating cash flow covers the operating profit after tax
| Year | Operating margin |
|---|---|
| FY2020 | 17% |
| FY2021 | 49% |
| FY2022 | 58% |
| FY2023 | 63% |
| FY2024 | 56% |
| FY2025 | 66% |
Details›
- Operating margin12 months to Q4 2021
- 49%
- Net margin12 months to Q4 2021
- 46%
- Revenue, trailing twelve months
- $94M
- Net income, trailing twelve months
- $43M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 21%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from ESEA and who it buys from, as the companies report it.
- Orient Overseas Container Line Ltd Hong32%
Share of revenue · FY2025 20-F
- Maersk Line A/S23%
Share of revenue · FY2025 20-F
- Asyad Line15%
Share of revenue · FY2025 20-F
- Charterer CMA10%
Share of revenue · FY2025 20-F
- Top five customers87%
Combined share of revenue · FY2025 20-F
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; ESEA’s own figures are from its FY2025 20-F. Smaller customers and suppliers go unreported.