ESEAEuroseas Ltd.
Is it safe?
Nothing alarming, nothing pristine: comfortable debt (A) and typical volatility.
Investment-grade balance sheet. A rule of thumb on leverage, not a credit rating.
Moderate price swings, typical volatility. Worst drawdown -96% · now 7% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can ESEA take a bad year?
Euroseas Ltd. carries $92M of net debt at 1.73× EBITDA: a load its earnings can carry.
Net debt · as at Q4 2021 · under two and a half years of EBITDA, comfortable
- Net debt / EBITDA
- 1.73×
Net debt / EBITDA · 3.98× a year ago · the load is coming down
- Interest cover
- 17.9×
Interest cover · operating profit covers the interest bill several times over
- Annualised volatility
- 43%
Annualised volatility · roughly twice as jumpy as the market
Details›
- Total debtQ4 2021
- $118M
- Cash and short-term investments
- $27M
- Net debt
- $92M
- EBITDA, trailing twelve months
- $53M
- Operating profit, trailing twelve months
- $46M
- Debt / equity
- 1.54×
- Total debt / EBITDA
- 2.23×
- Annualised volatilitytwo years of daily moves
- 43%
- Worst drawdown on file
- −96%
- Below its 52-week high
- 7.1%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.