- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. 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 low; currently it is at 15.92%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -49.46% is significantly below that of the industry average.
- ESEA has underperformed the S&P 500 Index, declining 8.80% from its price level of one year ago. 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.
- EUROSEAS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EUROSEAS LTD reported poor results of -$2.27 versus -$0.39 in the prior year. This year, the market expects an improvement in earnings (-$0.26 versus -$2.27).
- Despite currently having a low debt-to-equity ratio of 0.42, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ESEA's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.72 is high and demonstrates strong liquidity.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30.89 points (-0.2%) at 17,068 as of Tuesday, Sept. 2, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,485 issues advancing vs. 1,589 declining with 141 unchanged. The Transportation industry as a whole closed the day up 0.8% versus the S&P 500, which was down 0.1%. Top gainers within the Transportation industry included Globus Maritime ( GLBS), up 1.8%, PHI ( PHII), up 27.6%, Euroseas ( ESEA), up 1.8%, China Eastern Airlines ( CEA), up 5.8% and Patriot Transportation Holdings ( PATR), up 3.8%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Euroseas ( ESEA) is one of the companies that pushed the Transportation industry higher today. Euroseas was up $0.02 (1.8%) to $1.16 on light volume. Throughout the day, 21,383 shares of Euroseas exchanged hands as compared to its average daily volume of 52,600 shares. The stock ranged in a price between $1.14-$1.18 after having opened the day at $1.14 as compared to the previous trading day's close of $1.14. Euroseas Ltd. provides ocean-going transportation services worldwide. It owns and operates dry bulk carriers that transport bulks, such as iron ore, coal, and grains, as well as bauxite, phosphate, and fertilizers. Euroseas has a market cap of $64.9 million and is part of the services sector. Shares are down 21.4% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Euroseas a buy, no analysts rate it a sell, and 1 rates it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Euroseas as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on ESEA go as follows: