Euroseas Story

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ESEA -- USA Stock  

USD 10.56  0.59  5.29%

It appears Euroseas will continue to recover much faster as its share price surged up 27.77% today. The company current daily volatility is 7.63 percent, with a beta of 1.64 and an alpha of 1.53 over DOW. While some baby boomers are getting worried about transportation, it is reasonable to go over Euroseas. We will look into some reasons why it is still possible for Euroseas to maintain above-average margins while minimizing volatility.
Published over three weeks ago
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Breaking down Euroseas (NASDAQ:ESEA) volatility slip
Euroseas currently holds roughly 3.56 M in cash with 2.43 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.53.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Euroseas has an asset utilization ratio of 30.92 percent. This suggests that the company is making $0.31 for each dollar of assets. An increasing asset utilization means that Euroseas is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Euroseas, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Euroseas along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Euroseas' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Euroseas in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Euroseas. Your research has to be compared to or analyzed against Euroseas' peers to derive any actionable benefits. When done correctly, Euroseas' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Euroseas.

How important is Euroseas's Liquidity

Euroseas financial leverage refers to using borrowed capital as a funding source to finance Euroseas ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Euroseas financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Euroseas's total debt and its cash.

How Euroseas utilizes its cash?

To perform a cash flow analysis of Euroseas, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Euroseas is receiving and how much cash it distributes out in a given period. The Euroseas cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Euroseas Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 2.92 Million

Euroseas Correlation with Peers

Investors in Euroseas can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Euroseas. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Euroseas and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Euroseas is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Euroseas for more details

What is driving Euroseas Investor Appetite?

Euroseas is slightly risky given 1 month investment horizon. Euroseas secures Sharpe Ratio (or Efficiency) of 0.24, which denotes the company had 0.24% of return per unit of risk over the last month. Our standpoint towards predicting the risk of a stock is to use both market data as well as company specific technical data. We were able to analyze and collect data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.8% are justified by taking the suggested risk. Use Euroseas Downside Deviation of 6.31, coefficient of variation of 432.12, and Mean Deviation of 5.7 to evaluate company specific risk that cannot be diversified away.
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0.740.870.520.79
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0.790.940.950.75
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Euroseas growth be viable after the rise?

Current kurtosis is at 1.38. Euroseas is displaying above-average volatility over the selected time horizon. Investors should scrutinize Euroseas independently to ensure intended market timing strategies are aligned with expectations about Euroseas volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Euroseas' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Euroseas' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Euroseas

Whereas some other firms under the marine shipping industry are still a bit expensive, Euroseas may offer a potential longer-term growth to investors. To conclude, as of the 20th of March 2021, our analysis shows that Euroseas actively responds to the market. The company is overvalued and projects close to average probability of financial unrest for the next 2 years. Our current 30 days 'Buy-Sell' recommendation on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Euroseas. Please refer to our Terms of Use for any information regarding our disclosure principles.

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