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ZYBERNO

Stock Report

Updated Sep 2, 2026

EUROSEAS LTD. (ESEA)

NASDAQ

$76.63

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

36.0/100

WEAK BUSINESS

EUROSEAS LTD. (ESEA) scores 36/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full ESEA quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

+6.8%

Slight Underestimate

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full ESEA valuation analysis · → View full ESEA Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (0.0%)

Debt-to-Equity (Solvency Risk):GOOD (0.47x)

Operating Margin (Operational Efficiency):CRITICAL (0.0%)

Return on Capital (Capital Efficiency):EXCELLENT (22.3%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

EUROSEAS LTD. (ESEA) stock report — Zyberno Score 36/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, EUROSEAS LTD. (ESEA) shows a Brina Gap of +6.8%, which strengthens the case: based on the company's ROIC (22.3%) and reinvestment rate (-25.5%), the business can fundamentally grow at -5.7% — but the current enterprise value implies the market expects -12.5%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:76.63

Market Cap:$514.30M

Valuation Multiples (2)

P/B Ratio:1.11x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$554.65M

Ev Ebitda Ratio:3.11x

Price Action & Momentum (3)

12-1 Momentum:

+28.8% (84th pctile)

📈 Click to view full ESEA Momentum analysis →

Momentum Percentile:84 / 100

% of 52-Week High:96.2%

B. Profitability Assessment

Return Metrics (5)

Roic:

22.3%

📊 Click to view full ESEA ROIC analysis →

Reinvestment Rate:-25.5%

Fundamental Growth Rate (g):-5.7%

Market-Implied Growth Rate:-12.5%

Brina Gap:

6.8%

☷ Click to view full ESEA Brina Gap analysis →

Margin Analysis (1)

Ebitda Margin:78.2%

Yield Metrics (2)

Earnings Yield:-$999.00

Dividend Yield:3.7%

C. Log-Linear Regression Growth Trends

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:4.89x

Quick Ratio:4.82x

Cash Ratio:4.48x

Leverage Analysis (3)

Debt To Equity Ttm:0.47x

Debt-to-Equity Ratio:0.47x

Debt To Ebitda:1.22x

Coverage Ratios (2)

Interest Coverage Ratio:44.66x

Times Interest Earned:44.66

Capital Structure (4)

Working Capital:152,998,810.00

Cash And Cash Equivalents:176,460,053.00

Long Term Debt:$197.66M

Net Debt:$40.35M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

$227.87M

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00$149.50M

Bottom Line Performance (3)

$136.97M

Income Before Tax:$0.00

Ebitda Ttm:178,111,493.00

Operating Expenses (5)

Operating Expenses:39,939,683.00

R And D Expense:0.00

Sga Expense:3,152,792.00

Income Tax Expense:$0.00

Interest Expense:3,347,866.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:22.0%

Ebitda Margin:78.2%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$700.46M

Current Assets:$192.35M

Ppe Net:465,913,492.00

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:237,011,730.00

Current Liabilities:39,352,279.00

Long Term Debt:$197.66M

Short Term Debt:$19.15M

Equity & Capital (3)

Equity:$463.44M

Retained Earnings:$204.51M

Common Stock:200,000,000.00

Working Capital Items (3)

Accounts Receivable:10,159,572.00

Inventory:2,817,493.00

Accounts Payable:9,035,452.00

Special Items (2)

Contract Liabilities:5,291,870.00

Stock Based Compensation:28,765.00

C. Cash Flow Analysis

Operating Activities (2)

$141.13M$0.00

Investment Activities (1)

Investing Cash Flow:-$208.46K

Financing Activities (3)

Financing Cash Flow:-$6.09M

Dividends Paid Ttm:18,956,612.00

Stock Repurchase:2,122,174.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$52.00M

Long Term Debt Repayments:$3.29M

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:$20.41

Revenue & Cash Per Share (2)

Sales Per Share Ttm:33.95

Operating Cash Flow Per Share:$21.03

Book Value & Capital (2)

Book Value Per Share:$69.05

Cash Per Share:26.29

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.33x

Working Capital Turnover Ttm:1.49x

Receivables Management (2)

Receivables Turnover Ttm:22.43x

Days Sales Outstanding Ttm:16.27

Inventory Management (2)

Inventory Turnover Ttm:80.88x

Days Inventory Outstanding Ttm:4.51

Payables & Cash Cycle (2)

Days Payable Outstanding:14.47

Cash Conversion Cycle:6.31

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:80.00

Quality Score:95.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:-25.5%

Fundamental Growth Rate (g):-5.7%

Market-Implied Growth Rate:-12.5%

Brina Gap:

6.8%

☷ Click to view full ESEA Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

C. Company Profile & Context

Corporate Information (6)

Symbol:ESEA

Company Name:EUROSEAS LTD.

Sector:Unknown

Industry:Deep Sea Foreign Transportation of Freight

Exchange:NASDAQ

Country:Greece

Market Classification (3)

Market Cap Category:N/A

Price Category:high

Volume Category:N/A

Share Structure (3)

Shares Outstanding:6.71M

Shares Outstanding Basic:6.71M

Shares Outstanding Diluted:6.75M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-02 02:20:40 UTC

Data Timestamp:2026-09-02T02:20:40.510818