NEW YORK ( TheStreet) -- Euroseas (Nasdaq: ESEA) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Marine industry. The net income has significantly decreased by 94.9% when compared to the same quarter one year ago, falling from $0.53 million to $0.03 million.
  • Net operating cash flow has significantly decreased to $1.68 million or 74.75% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of EUROSEAS LTD has not done very well: it is down 16.76% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Marine industry and the overall market, EUROSEAS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for EUROSEAS LTD is rather high; currently it is at 53.40%. Regardless of ESEA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.20% trails the industry average.

Euroseas Ltd., together with its subsidiaries, provides ocean-going transportation services worldwide. The company owns and operates dry bulk carriers that transport bulks, such as iron ore, coal, and grains, as well as minor bulks, which include bauxite, phosphate, and fertilizers. Euroseas has a market cap of $104.5 million and is part of the services sector and transportation industry. Shares are down 13.9% year to date as of the close of trading on Tuesday.

You can view the full Euroseas Ratings Report or get investment ideas from our investment research center.
null

If you liked this article you might like

A Good Entry Point Is Hard to Find

Maritime Shippers Manic Stock Run May Be Driven by Day Traders, Hope for Trump Trade

DryShips' 1,500% Rise Looks All Wet

Lingering Pockets of Emotion Drive Market Action

I Look to Oils and Technologies Right Now