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The Transportation industry as a whole closed the day down 0.2% versus the S&P 500, which was up 1.7%. Laggards within the Transportation industry included Globus Maritime ( GLBS), down 1.8%, Euroseas ( ESEA), down 3.8%, Danaos ( DAC), down 3.5%, Box Ships ( TEU), down 5.5% and Global Ship Lease ( GSL), down 3.1%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Danaos ( DAC) is one of the companies that pushed the Transportation industry lower today. Danaos was down $0.17 (3.5%) to $4.67 on light volume. Throughout the day, 5,268 shares of Danaos exchanged hands as compared to its average daily volume of 10,700 shares. The stock ranged in price between $4.66-$4.77 after having opened the day at $4.74 as compared to the previous trading day's close of $4.84.

Danaos Corporation, together with its subsidiaries, is engaged in the ownership and operation of containerships, as well as chartering of its vessels to liner companies in Greece and internationally. It primarily offers seaborne transportation services. Danaos has a market cap of $548.3 million and is part of the services sector. Shares are down 1.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Danaos a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Danaos as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk and weak operating cash flow.

Highlights from TheStreet Ratings analysis on DAC go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Marine industry average. The net income has decreased by 14.8% when compared to the same quarter one year ago, dropping from $19.54 million to $16.64 million.
  • The debt-to-equity ratio is very high at 4.64 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.21, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has decreased to $44.02 million or 11.73% when compared to the same quarter last year. Despite a decrease in cash flow of 11.73%, DANAOS CORP is in line with the industry average cash flow growth rate of -19.05%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Marine industry and the overall market on the basis of return on equity, DANAOS CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • DAC, with its decline in revenue, underperformed when compared the industry average of 10.7%. Since the same quarter one year prior, revenues slightly dropped by 6.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Danaos Ratings Report

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At the close, Euroseas ( ESEA) was down $0.04 (3.8%) to $1.04 on heavy volume. Throughout the day, 219,317 shares of Euroseas exchanged hands as compared to its average daily volume of 40,900 shares. The stock ranged in price between $1.03-$1.12 after having opened the day at $1.12 as compared to the previous trading day's close of $1.08.

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 $63.4 million and is part of the services sector. Shares are down 23.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Euroseas a buy, no analysts rate it a sell, and 2 rate it a hold.

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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:

  • 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's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.29%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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.

You can view the full analysis from the report here: Euroseas Ratings Report

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Globus Maritime ( GLBS) was another company that pushed the Transportation industry lower today. Globus Maritime was down $0.06 (1.8%) to $3.34 on average volume. Throughout the day, 11,287 shares of Globus Maritime exchanged hands as compared to its average daily volume of 11,600 shares. The stock ranged in price between $3.19-$3.41 after having opened the day at $3.41 as compared to the previous trading day's close of $3.40.

Globus Maritime has a market cap of $34.4 million and is part of the services sector. Shares are down 14.1% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Globus Maritime a buy, no analysts rate it a sell, and none rate it a hold.

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