MeritValue

EUROSEAS LTD.

ESEAdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

EUROSEAS LTD. earns about 45% on equity, with a roughly flat share count. The applicable estimate puts fair value near $168.22 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$93.9M1$182.7M2$189.4M3$212.9M3$227.9M3
Net income$43M4$106.2M5$114.5M6$112.8M6$137M6
Operating cash flow$52.6M7$114.1M8$130M9$128.2M9$141.1M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$118M10$107.2M11$130M12$205.4M13$216.8M13
Cash & equivalents$26.5M14$25.8M15$58.6M16$73.7M16$176.5M16
Diluted shares7.0M7.2M6.9M7.0M6.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$667.1
your share of equity
Profit it earned you last year
$197.16
Free cash flow it threw off
—
Debt you’d be carrying
$312.09

10 shares is a claim on $667.1 of net worth that earned you $197.16 last year, against $312.09 of debt.

iii. Is this a good business?
Moat signal · return on equity
45% avg · 5y
FY21 56%FY22 63%FY23 43%FY24 31%FY25 30%

It earned an average 45% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has risen 84% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$168.22
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$112.8M
  • growthAssumed0.0%
Graham Number
$172.04
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001171843-24-002343 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001171843-25-003243 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001171843-26-002807 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001171843-24-002343 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001171843-25-003243 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001171843-26-002807 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001171843-24-002343 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001171843-25-003243 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001171843-26-002807 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001171843-23-002671 (LongTermDebtNoncurrent)
  11. 20-F · period ending 2022-12-31 · accession 0001171843-24-002343 (LongTermDebtNoncurrent)
  12. 20-F · period ending 2023-12-31 · accession 0001171843-25-003243 (LongTermDebtNoncurrent)
  13. 20-F · period ending 2024-12-31 · accession 0001171843-26-002807 (LongTermDebtNoncurrent)
  14. 20-F · period ending 2021-12-31 · accession 0001171843-24-002343 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2022-12-31 · accession 0001171843-25-003243 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2023-12-31 · accession 0001171843-26-002807 (CashAndCashEquivalentsAtCarryingValue)