Euroseas Stock (NASDAQ:ESEA), Trade Ideas

Euroseas

Euroseas Ltd is a shipping company. Its fleet consists of containerships that transport container boxes providing scheduled service between ports. Its operations are managed by an affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. The company employs its vessels on spot and period charters and through pool arrangements.

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ESEA

On December 7, 2023, prominent figures in the container shipping industry delved into the intricacies of the market’s supply and demand fundamentals, their own company’s strategies, and their outlook on the segment’s outlook during Capital Link’s recent webinar focused on container shipping.

Highlights:

Mid-Sized And Small Vessels Steer Container Market Growth

Earnings

Equities

News

Guidance

Euroseas Q1: Earnings Beat, Dividend, Comeback Of Charter Rates &amp; More

Analyst Color

Price Target

Reiteration

Analyst Ratings

Euroseas Analyst Cuts Price Target, Still Sees Almost 100% Upside Courtesy Multi-Year Contracts

Euroseas Ltd

Asset Sales

Euroseas Signs Memorandum Of Agreement To Sell M/V EM Astoria For ~$10M

Contracts

Euroseas Announces Time Charter Contract For M/V EM Hydra, For Minimum Period Of 10 To Maximum Period Of 12 Months At Option Of The Charter; Gross Daily Rate Of $13,000 In Direct Continuation Of Existing Charter

Euroseas Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>, the "Company" or "Euroseas")))), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today a time charter contract for its 4,250 teu intermediate containership, M/V Synergy Antwerp, for a minimum period of 11.5 to a maximum period of 14 months at the option of the charterer, at a gross daily rate of $26,500. The charter commenced on April 2, 2024, after the vessel successfully completed its scheduled drydock and special survey, along with certain retrofits including the installation of a number of "energy saving devices". The latter are expected to improve her consumption in the commercial speed range by about 25%. On that basis, the vessel will emit about 9,800 metric tons of CO2 less per annum. &nbsp;
The following retrofits and "energy saving devices" were installed on the ship:
(a)&nbsp; New bulbous bow (b)&nbsp; A new and lighter propeller (c)&nbsp; Hub vortex absorbed fins (HVAF) (d)&nbsp; Pre-shrouded vanes (PSV) (e)&nbsp; Silicone coating of the ship's underwater parts (f)&nbsp; LED lights (g)&nbsp; Auto pilot upgrade with advanced ecology control (h)&nbsp; Jacket pre-heater auto control
Aristides Pittas, Chairman and CEO of Euroseas commented: "We are pleased to announce that M/V Synergy Antwerp was chartered for about a year to a top-tier charterer at a very profitable rate of $26,500/day, following the completion of its drydock and retrofits. The charter rate represents a strong increase compared to last done, indicating charterer's interest in more modern, energy efficient vessels; it is expected to contribute about $6.5 million of EBITDA over the minimum contracted period and increases our 2024 charter coverage to about 80%. This is the third vessel from our fleet undergoing retrofits as part of our ongoing efforts to modernize our fleet and reduce our carbon footprint."

Euroseas Ltd. Announces One-Year Time Charter Contract And Completion Of Retrofits For Its Intermediate Containership, M/V Synergy Antwerp At A Gross Daily Rate Of $26,500

Euroseas Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>, the "Company" or "Euroseas")))), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today it has entered into a time charter contract for M/V LEONIDAS Z, a newbuilding fuel efficient 2,800 teu feeder containership currently under construction, for a minimum period of 23 to a maximum period of 25 months at the option of the charterer, at a gross daily rate of $20,000. The new charter will commence upon delivery of the vessel from the shipyard expected around the end of April or beginning of May 2024. &nbsp;
Aristides Pittas, Chairman and CEO of Euroseas commented: "We are pleased to announce that we have chartered our upcoming newbuilding vessel, the fourth in a series of nine, with one of the largest liner companies, at a profitable rate level of $20,000/day, exploiting the recent strength of the market both in terms of charter level and charter duration. This charter is expected to contribute about $9 million of EBITDA for the minimum contracted period; it increases our 2024 charter coverage to about 74%.
"We are hopeful that we will be able to continue capitalizing on the current strength of the market for chartering our few vessels that come open within the next quarter including the three 1,800 teu vessels that will be delivered during this period."

Euroseas Ltd. Announces Two-Year Time Charter Contract For Its Fuel Efficient 2,800 teu Feeder Containership Newbuilding, M/V Leonidas Z, Commencing upon Its Delivery, At A Gross Daily Rate Of $20,000

<h3>What are Value Stocks?</h3>
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock. 
<h2>Below is a list of notable value stocks in the industrials sector:</h2>
<ol>
<li>Mueller Industries (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLI#NYSE">MLI</a>) - P/E: 9.17</li>
<li>United Airlines Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) - P/E: 5.51</li>
<li>Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) - P/E: 2.16</li>
<li>Performance Shipping (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSHG#NASDAQ">PSHG</a>) - P/E: 0.51</li>
<li>Intuitive Machines (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUNR#NASDAQ">LUNR</a>) - P/E: 3.92</li>
</ol>
Mueller Industries has reported Q4 earnings per share at $1.05, which has increased by 77.97% compared to Q3, which was 0.59. Its most recent dividend yield is at 1.53%, which has increased by 0.04% from 1.49% in the previous quarter.
United Airlines Holdings saw a decrease in earnings per share from 3.65 in Q3 to $2.0 now. Most recently, Euroseas reported earnings per share at $3.61, whereas in Q3 earnings per share sat at $4.07. Its most recent dividend yield is at 8.06%, which has decreased by 1.12% from 9.18% in the previous quarter.
Performance Shipping's earnings per share for Q3 sits at $0.27, whereas in Q2, they were at 0.46. Intuitive Machines's earnings per share for Q3 sits at $1.29, whereas in Q2, they were at 1.52. 
The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.

LUNR

PSHG

5 Value Stocks In The Industrials Sector

Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) reported quarterly earnings of $3.61 per share which beat the analyst consensus estimate of $3.50 by 3.14 percent. The company reported quarterly sales of $49.06 million which missed the analyst consensus estimate of $49.23 million by 0.35 percent. This is a 14.39 percent increase over sales of $42.89 million the same period last year.

Earnings Beats

Earnings Misses

Euroseas Q4 2023 Adj EPS $3.61 Beats $3.50 Estimate, Sales $49.06M Miss $49.23M Estimate

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Earnings Scheduled For February 21, 2024

Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) is set to give its latest quarterly earnings report on Wednesday, 2024-02-21. Here's what investors need to know before the announcement.
Analysts estimate that Euroseas will report an earnings per share (EPS) of $3.50. 
Euroseas bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Historical Earnings Performance</h3>
Last quarter the company beat EPS by $1.06, which was followed by a 1.69% drop in the share price the next day.
Here's a look at Euroseas's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>3.01</td>
<td>2.40</td>
<td>2.73</td>
<td>2.75</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>4.07</td>
<td>4.17</td>
<td>3.09</td>
<td>2.50</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-1.69%</td>
<td>2.99%</td>
<td>1.94%</td>
<td>-1.94%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1708459297_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Euroseas were trading at $35.73 as of February 19. Over the last 52-week period, shares are up 89.57%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<a href="https://www.benzinga.com/quote/ESEA/earnings">To track all earnings releases for Euroseas visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings Preview: Euroseas

Euroseas Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>, the "Company" or "Euroseas")))), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today it has entered into a time charter contract for M/V TENDER SOUL, a newbuilding fuel-efficient 2,800 teu feeder containership currently under construction, for a minimum period of eight to a maximum period of ten months at the option of the charterer, at a gross daily rate of $17,000. The new charter will commence within February 2024, upon delivery of the vessel from the shipyard.
Aristides Pittas, Chairman and CEO of Euroseas commented: "We are pleased to announce that we have chartered our upcoming newbuilding vessel, the third in a series of nine, with one of the largest liner companies, at a profitable rate level in a period when new vessel deliveries are at a historical high and, as a result, containership rates are under pressure. This charter is expected to contribute about $2.4 million of EBITDA for the minimum contracted period; it boosts our 2024 charter coverage to about 70%.
"We continue working in chartering out the remaining of our newbuildings and completing their debt financing arrangements. Our strong cash position and contracted cash flow provide us with comfort and flexibility in not only funding the equity portion of our newbuilding program but also continuing to return funds to our shareholders via dividends and share buybacks."
Fleet Profile:
The Euroseas Ltd. fleet profile is as follows:
<figure class="table"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Type</td>
<td>Dwt</td>
<td>TEU</td>
<td>Year Built</td>
<td>Employment(&#x2A;)</td>
<td colspan="2"> TCE&nbsp;Rate ($/day)</td>
</tr>
<tr>
<td> Container Carriers</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>MARCOS V(&#x2A;)</td>
<td>Intermediate</td>
<td>72,968</td>
<td>6,350</td>
<td>2005</td>
<td>TC until Dec-24 TC until Aug-25</td>
<td colspan="2">$42,200 $15,000</td>
</tr>
<tr>
<td>SYNERGY BUSAN(&#x2A;)</td>
<td>Intermediate</td>
<td>50,726</td>
<td>4,253</td>
<td>2009</td>
<td>TC until Aug-24</td>
<td colspan="2">$25,000</td>
</tr>
<tr>
<td>SYNERGY ANTWERP</td>
<td>Intermediate</td>
<td>50,726</td>
<td>4,253</td>
<td>2008</td>
<td>TC until Feb-24</td>
<td colspan="2">$18,250</td>
</tr>
<tr>
<td>SYNERGY OAKLAND(&#x2A;)</td>
<td>Intermediate</td>
<td>50,787</td>
<td>4,253</td>
<td>2009</td>
<td>TC until May-26</td>
<td colspan="2">$42,000</td>
</tr>
<tr>
<td>SYNERGY KEELUNG(&#x2A;)</td>
<td>Intermediate</td>
<td>50,969</td>
<td>4,253</td>
<td>2009</td>
<td>TC until Apr-25</td>
<td colspan="2">$23,000</td>
</tr>
<tr>
<td>EMMANUEL P(&#x2A;)</td>
<td>Intermediate</td>
<td>50,796</td>
<td>4,250</td>
<td>2005</td>
<td>TC until Apr-25</td>
<td colspan="2">$21,000</td>
</tr>
<tr>
<td>RENA P(&#x2A;)</td>
<td>Intermediate</td>
<td>50,796</td>
<td>4,250</td>
<td>2007</td>
<td>TC until Apr-25</td>
<td colspan="2">$21,000</td>
</tr>
<tr>
<td>EM KEA(&#x2A;)</td>
<td>Feeder</td>
<td>42,165</td>
<td>3,100</td>
<td>2007</td>
<td>TC until May-26</td>
<td colspan="2">$19,000</td>
</tr>
<tr>
<td>GREGOS(&#x2A;)</td>
<td>Feeder</td>
<td>37,237</td>
<td>2,800</td>
<td>2023</td>
<td>TC until Apr-26</td>
<td colspan="2">$48,000</td>
</tr>
<tr>
<td>TERATAKI(&#x2A;)</td>
<td>Feeder</td>
<td>37,237</td>
<td>2,800</td>
<td>2023</td>
<td>TC until Jul-26</td>
<td colspan="2">$48,000</td>
</tr>
<tr>
<td>EM ASTORIA (+)</td>
<td>Feeder</td>
<td>35,600</td>
<td>2,788</td>
<td>2004</td>
<td>TC until Feb-24 then until Feb-25</td>
<td colspan="2">$50,000 $20,000</td>
</tr>
<tr>
<td>EVRIDIKI G(&#x2A;)</td>
<td>Feeder</td>
<td>34,677</td>
<td>2,556</td>
<td>2001</td>
<td>TC until Feb-25</td>
<td colspan="2">$40,000</td>
</tr>
<tr>
<td>EM CORFU(&#x2A;)</td>
<td>Feeder</td>
<td>34,654</td>
<td>2,556</td>
<td>2001</td>
<td>TC until Feb-25</td>
<td colspan="2">$40,000</td>
</tr>
<tr>
<td>DIAMANTIS P(&#x2A;)</td>
<td>Feeder</td>
<td>30,360</td>
<td>2,008</td>
<td>1998</td>
<td>TC until Oct-24</td>
<td colspan="2">$27,000</td>
</tr>
<tr>
<td>EM SPETSES(&#x2A;)</td>
<td>Feeder</td>
<td>23,224</td>
<td>1,740</td>
<td>2007</td>
<td>TC until Jul-24</td>
<td colspan="2">$29,500</td>
</tr>
<tr>
<td>JONATHAN P(&#x2A;)</td>
<td>Feeder</td>
<td>23,357</td>
<td>1,740</td>
<td>2006</td>
<td>TC until Sep-24</td>
<td colspan="2">$26,662(&#x2A;&#x2A;)</td>
</tr>
<tr>
<td>EM HYDRA(&#x2A;)</td>
<td>Feeder</td>
<td>23,351</td>
<td>1,740</td>
<td>2005</td>
<td>TC until May-24</td>
<td colspan="2">$15,000</td>
</tr>
<tr>
<td>JOANNA(&#x2A;)</td>
<td>Feeder</td>
<td>22,301</td>
<td>1,732</td>
<td>1999</td>
<td>TC until May-24</td>
<td colspan="2">$10,250</td>
</tr>
<tr>
<td>AEGEAN EXPRESS(&#x2A;)</td>
<td>Feeder</td>
<td>18,581</td>
<td>1,439</td>
<td>1997</td>
<td>TC until Jan-24</td>
<td colspan="2">$7,000</td>
</tr>
<tr>
<td> Total Container Carriers on the Water</td>
<td>19</td>
<td>740,512</td>
<td>58,861</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
</tbody>
</table>
</figure>
 &nbsp;
<figure class="table"> 
<table>
<tbody>
<tr>
<td>Vessels under construction</td>
<td>Type</td>
<td>Dwt</td>
<td>TEU</td>
<td>To be delivered</td>
<td>Employment</td>
<td colspan="2">TCE Rate ($/day)</td>
</tr>
<tr>
<td>TENDER SOUL (H4236)</td>
<td>Feeder</td>
<td>37,237</td>
<td>2,800</td>
<td>Feb- 2024</td>
<td>TC until Oct-24</td>
<td colspan="2">$17,000</td>
</tr>
<tr>
<td>LEONIDAS Z (H4237)</td>
<td>Feeder</td>
<td>37,237</td>
<td>2,800</td>
<td>Q2 2024</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>MONICA (H4248)</td>
<td>Feeder</td>
<td>22,262</td>
<td>1,800</td>
<td>Q2 2024</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>STEPHANIA K (H4249)</td>
<td>Feeder</td>
<td>22,262</td>
<td>1,800</td>
<td>Q2 2024</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>PEPI STAR (H4250)</td>
<td>Feeder</td>
<td>22,262</td>
<td>1,800</td>
<td>Q2 2024</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>DEAR PANEL (H4251)</td>
<td>Feeder</td>
<td>37,237</td>
<td>2,800</td>
<td>Q4 2024</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>SYMEON P (H4252)</td>
<td>Feeder</td>
<td>37,237</td>
<td>2,800</td>
<td>Q4 2024</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr>
<td>Total under construction</td>
<td>7</td>
<td>215,734</td>
<td>16,600</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
</tbody>
</table>
</figure>
Notes: (&#x2A;) TC denotes time charter. Charter duration indicates the earliest redelivery date; all dates listed are the earliest redelivery dates under each TC unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (+).
(&#x2A;&#x2A;) Rate is net of commissions (which are typically 5-6.25%).

Euroseas Ltd. Announces Time Charter Contract For Its Fuel-Efficient 2,800 teu Feeder Containership, M/V Tender Soul, For A Period Of 8-10 Months At The Option Of The Charterer, At A Gross Daily Rate Of $17,000, To Be delivered In February 2024

On December 7, 2023, prominent figures in the container shipping industry delved into the intricacies of the market&rsquo;s supply and demand fundamentals, their own company&rsquo;s strategies, and their outlook on the segment&rsquo;s outlook during Capital Link&rsquo;s recent webinar focused on container shipping.
Highlights:
<ul>
<li>Container shipping remains a critical element of global trade, facilitating the transportation of approximately 80% of the world&#39;s manufactured goods.</li>
<li>Container market shifts after a two-year rate boom, yet rates remain above pre-pandemic levels.</li>
<li>Despite economic challenges, signs indicate strength in the container segment, especially for mid-sized and small vessels, driven by factors like a smaller order book, increased scrapping, and environmental regulations.</li>
<li>Large vs. mid-sized/small container vessels face different realities.</li>
<li>Companies in the mid-sized and small segment invest in new buildings for fleet renewal, focusing on modern vessels with advanced technology to enhance efficiency and reduce environmental impact.</li>
<li>The industry&#39;s commitment to sustainability is highlighted, with a shift towards investing in technology, innovation, and green fuels, aligning with regulatory changes and meeting evolving customer needs.</li>
<li>Container shipping companies balance shareholder rewards and fleet investment</li>
</ul>
Webinar Participants: 
Mr. Chris Robertson, Vice President of Deutsche Bank, served as the webinar&rsquo;s moderator. He was joined by:
<ul>
<li>Mr. Evangelos Chatzis, CFO of Danaos Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dac#NYSE">DAC</a>)</li>
<li>Dr. Anastasios Aslidis, CFO of Euroseas Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/esea#NASDAQ">ESEA</a>)</li>
<li>Mr. Thomas Lister, CCO &amp; Head of ESG of Global Ship Lease (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>) (The day after the webinar, it was announced that Mr. Lister will become CEO as of March 31, 2024)</li>
<li>Mr. Constantin Baack, CEO of MPC Container Ships (OSLO: MPCC)</li>
</ul>
The full webinar can be accessed <a href="https://youtu.be/2o3-kHd4GLM?si=wx87W1HEuzmVKQwx">here</a>. 
<h3>Sustained Strength In Global Container Trade </h3>
Coming down from the boom in rates in the last two years, the container market has experienced a softening, although current rates are still higher than pre-pandemic levels. Container shipping makes up a critical element of global trade. As Global Ship Lease&rsquo;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gsl#NYSE">GSL</a>) Chief Commercial Officer, Mr. Thomas Lister noted, around 80% of the world&rsquo;s manufactured goods are transported by containers. These goods total about 200 million TEUs, which are carried by nearly 6,000 container ships each year. Despite the weakened economy and what seems to be a large orderbook, there are signs that the container segment will remain strong, particularly for mid-sized and small vessels, where a smaller orderbook, increased scrapping, and environmental regulations will make supply and demand fundamentals more dynamic.
This incredibly complex segment is made up of liners, who connect producers of goods with consumers by arranging the transportation of goods, as Mr. Evangelos Chatzis, CFO of Danaos Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dac#NYSE">DAC</a>), noted, and owners, who provide the vessels for transportation.
Typically, liners own about 50% of the vessels they employ, and charter in the rest. Usually, they prefer to own the large vessels measuring over 15,000 TEU, while opting to charter the smaller tonnage. However, this varies from company to company, as some liners own all their tonnage, while others charter all of it from owners. Owners and liners tend to have a symbiotic relationship &ndash; as, although owners provide the vessels, liners cover fuel costs, Mr. Lister noted, and around half of the global fleet is owned by liner companies.
Liners tend to prefer owning larger vessels, which make up 45% of the global fleet, as these strategic assets operate on the major global East-West trade routes like Asia to Europe, trans-Pacific, and transatlantic trips, Mr. Lister stressed.
<h3>Midsized And Smaller Container Vessels Subject To Different Market Dynamics Than Larger Ships</h3>
Mid-sized and smaller ships, which are up to 10,000 TEUs, service intermediary trade routes, such as North-South trips. Smaller ships such as those operated by MPC Container Ships (OSLO: MPCC), which range from 1,000 - 6,000 TEU, are used for intra-regional trade routes, including intra-Asian, intra-European, and intra-South American journeys, the company&rsquo;s CEO, Mr. Constantin Baack, stated. Around 98% of the ships used in these smaller trade routes are below 5,000 TEU, he continued. These mid-sized and smaller vessels, all under 10,000 TEU, are a fundamental part of global trade, as they account for around 70% of global containerized trade volumes, GSL&rsquo;s CCO Mr. Lister noted.
All of the companies participating in the webinar are focused on mainly smaller and midsized vessels. Euroseas (Nasdaq: <a class="ticker" href="https://www.benzinga.com/stock/esea#Nasdaq">ESEA</a>) is centered on vessels ranging from 1,500 to 6,500 TEU, GSL&rsquo;s fleet ranges from 2,000 TEU to 11,000 TEU, DAC is focused on ships from 2,200 TEU up to 13,000 TEU, and MPC owns those measuring 1,000 to 6,000 TEU.
Although large, midsized, and small vessels are all operating in the container shipping industry, they experience significantly different market dynamics. While the orderbook for larger vessels is incredibly high due to the massive profits liner companies experienced during the pandemic, there are far fewer new builds on the order book in the mid-sized and smaller container shipping space.
Spurred on by significant cashflows during the pandemic, liner companies invested in new, larger vessels in order to maintain competitiveness on mainline trades, Mr. Baack stated. However, while many companies did opt to purchase new builds for the smaller ships, the orderbook is not nearly as high as it is for the larger vessels. Additionally, a number of factors such as global fleet age and environmental regulations will impact the smaller container vessels heavily. The global fleet on the water has an average of 15 to 16 years, compared to the average economic lifespan of a ship, which is around 25 years. These factors will likely prompt more recycling, taking a portion of the global fleet off the water, MPCC&rsquo;s CEO stated.&nbsp;
Mr. Lister from GSL delved into the specifics of the orderbook, noting that the order book to fleet ratio is 29%, and is weighed heavily toward very large ships. For sub-10,000 TEU ships, however, the ratio is 14%, and deliveries extend until 2027. GSL&rsquo;s CCO emphasized that there has been chronic underinvestment in mid and smaller-sized container vessels, a major cause of the aging fleet. So, although there are a number of new builds on the books for smaller vessels, net growth is minimal compared to the aging fleet for this segment.
<h3>Demand And Charter Rates</h3>
In general, economic growth drives demand in the container shipping sector. Historically, GDP growth served as a metric for container demand. Currently, the ratio of demand growth per GDP growth measures at around 0.8 to 1.2, MPCC&rsquo;s CEO stated. Currently, as the world economy stagnates, demand is low, yet rates remain higher than they were before the pandemic.
As container demand is propelled by economic growth, and the world economy is subject to volatility, the security and up-front cash flow that longer-term charters provide is quite attractive to container companies. This is compared to shorter-term spot rates, which offer the potential of incredibly high rates when the market is high but do not provide the security of long-term, predictable profit.
Although owners of smaller-sized ships usually opt for shorter-term charters, ESEA capitalized on a number of competitive opportunities during the pandemic and secured longer-term charters, Dr. Anastasios Aslidis, CFO of Euroseas Ltd. said. The company has secured significant charter coverage for 2024, with almost 70% of the new buildings covered at rates near $30,000 a day. Additionally, the company has a charter cover of 25% for 2025. For GSL, which prioritizes the forward cash flow visibility that longer-term charters provide, 80% of 2024 is covered. The company has contracted revenues of $1.8 billion with an average remaining charter term of 2.1 years. Mr. Chatzis of DAC noted that the company has a substantial contract backlog of $2.5 billion, translating to approximately $1.9 billion of EBITDA, with an average charter duration of three years. Currently, the company is 90% covered for 2024 and 60% covered for 2025, highlighting DAC&rsquo;s commitment to securing charters for medium to long durations. Opting for shorter-term charters ranging from three to twelve months, MPCC aims for a staggered charter book, avoiding having all ships open simultaneously. MPCC has fixed 67% of its operating day for 2024.
As the market is currently soft, and many tonnage providers secured high rates from liner companies when the market was booming, there has been some concern that these contracts will be renegotiated. However, Mr. Chatzis of DAC dismissed the notion, stating that in his over two decades in the industry, there has never been a contract renegotiation without exception. He clarifies that liners, despite facing challenges, are companies with real assets and business infrastructure, servicing the global logistical chain. The contractual commitments are not easily altered simply due to market fluctuations.
<h3>Investing In Fleet Renewal And Newbuilds</h3>
While companies strive to maintain competitive supply and demand dynamics, they also aim to maintain a competitive and relatively young fleet. Therefore, a number of companies in the small and midsized segment have invested in new buildings. ESEA&rsquo;s CFO noted that the company has ordered nine ships over the past few years, with two already delivered and seven more to come. The new additions to the fleet are modern vessels with advanced technology, burning 35% to 40% less fuel per day compared to similar-sized ships, Dr. Aslidis noted.&nbsp;
DAC has also invested in new vessels. The company has 10 ships on order, all ranging from 6,000 to 8,000 TEU. These new vessels are designed to be methanol-ready, equipped with scrubbers, and incorporate the latest emission-reducing technologies.
Mr. Chatzis, DAC&rsquo;s CFO, stressed the importance of fleet modernization and staying competitive through innovation and renewal. He said that, in order to meet the evolving needs of its customers, DAC believes in investing in the latest technology and aligning with developments and regulatory changes in the industry.
Although faced with an aging fleet, owners may be hesitant to invest in new buildings due to the lack of certainty surrounding green fuels and environmental technology, weighing out the benefits of these pricey investments with the risk that they may not prove advantageous.&nbsp;
GSL&rsquo;s CCO expressed caution and a preference for an &quot;active wait-and-see approach.&quot; He pointed out the challenges of choosing the right fuel among the many options like methanol, ammonia, and nuclear. Rather than purchasing new ships, Global Ship Lease focuses on retrofitting existing ships to enhance efficiency, collaborating with charterers on operational improvements in order to optimize ship performance and reduce emissions.
<h3>Capital Allocation &ndash; Shareholder Rewards Or Fleet Renewal?</h3>
After container shipping companies welcomed increased profitability during the pandemic, they were faced with the option of offering larger rewards to shareholders or investing in renewing their fleets.
Dr. Aslidis of ESEA stressed the importance of returning value to shareholders and highlighted the company&rsquo;s two-pronged approach to returning value to its shareholders. First, the company initiated a dividend payment of $0.50 per quarter, totaling $2 per year. This dividend distribution has been in place for nearly two years, and the company aims to sustain it for the foreseeable future. Secondly, ESEA has implemented a share repurchase program, aiming to maximize repurchases within the allowed liquidity constraints. This is all while ESEA seeks to balance its cost allocation, enabling it to fund its new building program, cultivate an environmentally friendly fleet, offer shareholder rewards, and maintain liquidity so that it may jump on any advantageous opportunities that may arise now that the market is weaker.&nbsp;
Similarly, Mr. Baack of MPCC stated that the company places a strong emphasis on returning capital to investors through dividends and noted that MPCC has paid out over $730 million in dividends in less than 24 months. MPCC&rsquo;s policy is to pay out 75% of its adjusted net profits as a quarterly dividend. The company is able to offer dividends while remaining well-positioned for investment opportunities due to its low leverage &ndash; it has a net debt of around $1 million per vessel. The company has also renewed its fleet, with a substantial portion of its fleet being either newly built or quite young. MPCC&rsquo;s CEO expressed his belief that cautiously adopting new technology allows the company to remain a strong partner for charterers. Generally, MPCC has invested in new technology where the locked-in EBITDA is higher than the construction Capex, providing limited risk to the company.
For DAC, paying dividends has been a high priority, Mr. Chatzis stated. The company has increased its dividend steadily over the past few years, reaching $3.2 per share, offering a yield of approximately 4.5% to 5%. The company&rsquo;s intention is to sustain a fixed dividend that is not tied to income or cash flow percentages, ensuring investors view it as a reliable component of their returns. Apart from the dividend, DAC&rsquo;s CFO noted that, as he believes the company is undervalued, DAC has begun a share buyback program to reward shareholders. So far, the company has completed a $100 million buyback and has authorized an additional $100 million program.&nbsp;
In terms of fleet renewal, DAC considers it a priority, not only for replacing aging vessels but also for enhancing the environmental performance of its fleet, which has an average age of 14 years. To this end, DAC has placed orders for methanol-ready ships, enabling the option of retrofitting for methanol use without committing the capital upfront.
Mr. Lister of Global Ship Lease highlighted the company&#39;s considered approach to capital allocation, taking risks, opportunities, and relative risk-adjusted returns into account. The company has designed its dividend of $1.50 per share, approximately 8% at the current stock price, to be sustainable throughout market cycles. GSL has also implemented a share buyback program, which started in the third quarter of 2021 and has continued quarterly.&nbsp;
Despite its recent softening from the pandemic-induced boom, the container sector remains a vital component of global trade. The market dynamics vary significantly between larger and mid-sized to small vessels, with the latter showing potential for growth amid environmental regulations and a smaller order book.
This content is for informational purposes only and is not intended to be investing advice.
This article is from an external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) reported quarterly earnings of $4.07 per share which beat the analyst consensus estimate of $3.01 by 35.22 percent. This is a 40.34 percent increase over earnings of $2.90 per share from the same period last year. The company reported quarterly sales of $50.67 million which beat the analyst consensus estimate of $45.95 million by 10.26 percent. This is a 10.25 percent increase over sales of $45.95 million the same period last year.

Euroseas Q3 EPS $4.07 Beats $3.01 Estimate, Sales $50.67M Beat $45.95M Estimate

Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) is set to give its latest quarterly earnings report on Thursday, 2023-11-09. Here's what investors need to know before the announcement.
Analysts estimate that Euroseas will report an earnings per share (EPS) of $3.01. 
Euroseas bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Past Earnings Performance</h3>
Last quarter the company beat EPS by $1.77, which was followed by a 2.99% increase in the share price the next day.
Here's a look at Euroseas's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
<th>Q3 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>2.40</td>
<td>2.73</td>
<td>2.75</td>
<td>3.37</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>4.17</td>
<td>3.09</td>
<td>2.50</td>
<td>2.90</td>
</tr>
<tr>
<td>Price Change %</td>
<td>2.99%</td>
<td>1.94%</td>
<td>-1.94%</td>
<td>2.33%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2023/1699459327_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Euroseas were trading at $25.325 as of November 07. Over the last 52-week period, shares are up 22.58%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<a href="https://www.benzinga.com/quote/ESEA/earnings">To track all earnings releases for Euroseas visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Euroseas Earnings Preview

<h3>The Meaning Behind Value Stocks</h3>
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock. 
<h2>The following stocks are considered to be notable value stocks in the industrials sector:</h2>
<ol>
<li>Crane NXT (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CXT#NYSE">CXT</a>) - P/E: 7.54</li>
<li>Herc Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRI#NYSE">HRI</a>) - P/E: 8.71</li>
<li>United Maritime (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/USEA#NASDAQ">USEA</a>) - P/E: 0.46</li>
<li>Shyft Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHYF#NASDAQ">SHYF</a>) - P/E: 9.88</li>
<li>Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) - P/E: 1.79</li>
</ol>
Crane NXT saw an increase in earnings per share from 0.97 in Q1 to $1.12 now. Most recently, Herc Hldgs reported earnings per share at $4.0, whereas in Q2 earnings per share sat at $2.69. Its most recent dividend yield is at 1.91%, which has decreased by 0.62% from 2.53% in the previous quarter.
United Maritime has reported Q2 earnings per share at $-0.25, which has increased by 47.92% compared to Q1, which was -0.48. The company's most recent dividend yield sits at 11.54%, which has increased by 0.47% from 11.07% last quarter. 
Shyft Group saw an increase in earnings per share from 0.12 in Q1 to $0.25 now. Its most recent dividend yield is at 1.37%, which has increased by 0.56% from 0.81% in the previous quarter.
Most recently, Euroseas reported earnings per share at $4.17, whereas in Q1 earnings per share sat at $3.09. The company's most recent dividend yield sits at 9.18%, which has decreased by 1.48% from 10.66% last quarter. 
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.

SHYF

USEA

5 Value Stocks To Watch In The Industrials Sector

<h3>Gainers</h3>
<ul>
<li>Freightos (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRGO#NASDAQ">CRGO</a>) shares rose 13.7% to $2.99 during Monday's pre-market session. The market value of their outstanding shares is at $141.8 million. </li>
<li>Virco Mfg (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIRC#NASDAQ">VIRC</a>) stock increased by 8.83% to $5.05. The market value of their outstanding shares is at $81.8 million. </li>
<li>Laser Photonics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LASE#NASDAQ">LASE</a>) shares moved upwards by 8.49% to $2.3. The company's market cap stands at $18.9 million. </li>
<li>Xos (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XOS#NASDAQ">XOS</a>) stock rose 6.39% to $0.32. The company's market cap stands at $56.5 million. </li>
<li>Knightscope (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KSCP#NASDAQ">KSCP</a>) stock moved upwards by 5.98% to $0.93. The company's market cap stands at $72.5 million. </li>
<li>NeoVolta (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NEOV#NASDAQ">NEOV</a>) shares rose 5.62% to $3.19. The company's market cap stands at $105.7 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>WANG &amp; LEE Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WLGS#NASDAQ">WLGS</a>) stock decreased by 12.2% to $0.89 during Monday's pre-market session. The company's market cap stands at $13.3 million. </li>
<li>ATIF Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATIF#NASDAQ">ATIF</a>) stock decreased by 10.0% to $1.35. The company's market cap stands at $12.9 million. </li>
<li>Shengfeng Development (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFWL#NASDAQ">SFWL</a>) stock fell 9.63% to $7.89. The company's market cap stands at $650.1 million. </li>
<li>JanOne (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JAN#NASDAQ">JAN</a>) stock declined by 7.55% to $0.39. The market value of their outstanding shares is at $1.6 million. </li>
<li>American Rebel Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AREB#NASDAQ">AREB</a>) stock fell 6.68% to $0.98. The company's market cap stands at $2.7 million. </li>
<li>Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) shares declined by 5.8% to $25.35. The market value of their outstanding shares is at $177.3 million. 
See Also: <a href="http://www.benzinga.com/money/best-industrials-stocks/" title="www.benzinga.com/money/best-industrials-stocks/">www.benzinga.com/money/best-industrials-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Movers

AREB

ATIF

CRGO

KSCP

LASE

NEOV

SFWL

VIRC

WLGS

12 Industrials Stocks Moving In Monday's Pre-Market Session

Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) reported quarterly earnings of $4.17 per share which beat the analyst consensus estimate of $2.40 by 73.75 percent. This is a 2.21 percent increase over earnings of $4.08 per share from the same period last year. The company reported quarterly sales of $47.70 million which beat the analyst consensus estimate of $40.95 million by 16.47 percent. This is a 1.62 percent decrease over sales of $48.48 million the same period last year.

UPDATE: Euroseas Q2 Adj $4.17 Beats $2.40 Estimate, Sales $47.70M Beat $40.95M Estimate

Buybacks

Euroseas Ltd Approved Extension Of $20M Share Repurchase Program For Another Year

Euroseas (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/esea#NASDAQ">ESEA</a>) reported quarterly earnings of $4.17 per share which beat the analyst consensus estimate of $2.40 by 73.75 percent. This is a 2.21 percent increase over earnings of $4.08 per share from the same period last year. The company reported quarterly sales of $47.70 million which beat the analyst consensus estimate of $40.95 million by 16.47 percent. This is a 1.62 percent decrease over sales of $48.48 million the same period last year.

Euroseas Q2 Adj $4.17 Beats $2.40 Estimate, Sales $47.70M Beat $40.95M Estimate

Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) is set to give its latest quarterly earnings report on Wednesday, 2023-08-09. Here's what investors need to know before the announcement.
Analysts estimate that Euroseas will report an earnings per share (EPS) of $2.40. 
Euroseas bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Historical Earnings Performance</h3>
Last quarter the company beat EPS by $0.36, which was followed by a 1.94% increase in the share price the next day.
Here's a look at Euroseas's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
<th>Q3 2022</th>
<th>Q2 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>2.73</td>
<td>2.75</td>
<td>3.37</td>
<td>3.80</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>3.09</td>
<td>2.50</td>
<td>2.90</td>
<td>4.08</td>
</tr>
<tr>
<td>Price Change %</td>
<td>1.94%</td>
<td>-1.94%</td>
<td>2.33%</td>
<td>-4.87%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2023/1691517680_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Euroseas were trading at $21.48 as of August 07. Over the last 52-week period, shares are down 22.54%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release. 
<a href="https://www.benzinga.com/quote/ESEA/earnings">To track all earnings releases for Euroseas visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Euroseas's Earnings: A Preview

Euroseas Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>, the &amp;quot, Company&amp;quot, or &amp;quot, Euroseas&amp;quot, )))), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today a mutual agreement to terminate the current charters for its container vessels M/V Rena P and M/V Emmanuel P, while concurrently fixing the vessels on new charters for&nbsp;$21,000&nbsp;per vessel per day. 
&nbsp;
Specifically:
<ul>
<li>The Company agreed to terminate the current charter of M/V Rena P, a 4,250 TEU vessel built in 2007; which was originally expiring in February 2025 earning a rate of&nbsp;$20,250/day until April 2024 and, subsequently, a rate based on the CONTEX index with a floor of&nbsp;$13,000&nbsp;and a ceiling of&nbsp;$21,000&nbsp;per day. Contemporaneously with the termination, the Company has entered into a time charter contract for a minimum period of twenty to a maximum period of twenty-four months at the option of the charterer, at a gross daily rate of&nbsp;$21,000. The new charter will commence in August 2023, following the termination of its current charter.</li>
<li>Similarly, the Company agreed to terminate the current charter of M/V Emmanuel P, a 4,250 TEU vessel built in 2005, which was originally expiring in March 2025 at a rate of&nbsp;$19,000/day. Contemporaneously with the termination, the Company has entered into a new time charter contract for a minimum period of twenty to a maximum period of twenty-four months at the option of the charterer, at a gross daily rate of&nbsp;$21,000. The new charter will commence in August 2023, following the termination of its current charter.</li>
</ul>
Aristides Pittas, Chairman and CEO of Euroseas commented:&nbsp;&quot;We are pleased to announce we have reached a mutual agreement with our existing charterer to terminate the charters of our two intermediate containerships built in 2007 and 2005 respectively, while having successfully replaced these charters at&nbsp;$21,000&nbsp;per day, following the agreed termination of their current charters in August 2023. These charters are expected to contribute between&nbsp;$2-4 million in extra revenues for the same period.
By maintaining a very healthy employment coverage of about&nbsp;95%&nbsp;for the remainder of 2023 and approximately&nbsp;66%&nbsp;for 2024 at very high levels, we can safely continue paying our quarterly dividend, continue implementing our buyback program and still have significant funds to invest in other opportunities that will arise.&quot;

Euroseas Ltd. Announces New Charters For Its Two 4,250 TEU Containerships, 2007-Built Rena P And 2005-Built Emmanuel P At $21,000 Per Vessel Per Day Following A Mutually Agreed Termination Of The Existing Charters

<h3>Gainers</h3>
<ul>
<li>Fusion Fuel Green (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTOO#NASDAQ">HTOO</a>) stock moved upwards by 7.7% to $2.67 during Monday's after-market session. The company's market cap stands at $38.8 million. </li>
<li>iPower (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IPW#NASDAQ">IPW</a>) shares moved upwards by 7.22% to $0.89. The market value of their outstanding shares is at $26.4 million. </li>
<li>Astronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATRO#NASDAQ">ATRO</a>) shares increased by 6.73% to $19.8. The market value of their outstanding shares is at $644.7 million. </li>
<li>Quhuo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QH#NASDAQ">QH</a>) stock rose 6.28% to $2.03. The market value of their outstanding shares is at $12.5 million. </li>
<li>Euroseas (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESEA#NASDAQ">ESEA</a>) shares rose 4.85% to $21.15. The market value of their outstanding shares is at $148.1 million. </li>
<li>Wheels Up Experience (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UP#NYSE">UP</a>) shares moved upwards by 4.79% to $1.75. The company's market cap stands at $44.0 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>AERWINS Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AWIN#NASDAQ">AWIN</a>) stock decreased by 8.5% to $0.41 during Monday's after-market session. Today's trading volume for this security ended up closing at 5.6 million shares, which is 3164.9 percent of its average volume over the last 100 days. The company's market cap stands at $23.0 million. </li>
<li>Pineapple Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEGY#NASDAQ">PEGY</a>) stock decreased by 5.39% to $1.23. The company's market cap stands at $12.2 million. </li>
<li>Perma-Fix Envirn Servs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PESI#NASDAQ">PESI</a>) stock decreased by 3.7% to $9.65. The market value of their outstanding shares is at $130.7 million. </li>
<li>Applied UV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AUVI#NASDAQ">AUVI</a>) stock declined by 3.48% to $0.93. The market value of their outstanding shares is at $8.2 million. </li>
<li>Performance Shipping (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSHG#NASDAQ">PSHG</a>) stock decreased by 3.13% to $0.81. The company's market cap stands at $9.5 million. </li>
<li>Markforged Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MKFG#NYSE">MKFG</a>) shares declined by 3.11% to $1.25. The company's market cap stands at $245.4 million. 
See Also: <a href="http://www.benzinga.com/money/best-industrials-stocks/" title="www.benzinga.com/money/best-industrials-stocks/">www.benzinga.com/money/best-industrials-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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12 Industrials Stocks Moving In Monday's After-Market Session

Euroseas Ltd (ESEA) is the highest overall rated company in the Marine Shipping industry with an overall score of 72. ESEA is up 90.36% so far this year after the company closed yesterday at $38.72.  The overall score measures the company's performance based-off both short and long term indicators and means that ESEA score

Is Euroseas Ltd (ESEA) Stock Near the Top of the Marine Shipping Industry?

Euroseas Ltd (ESEA) is the highest overall rated company in the Marine Shipping industry with an overall score of 73. ESEA is up 97.56% so far this year after the company closed yesterday at $37.18.  The overall score measures the company's performance based-off both short and long term indicators and means that ESEA score

Is Euroseas Ltd (ESEA) the Top Pick in the Marine Shipping Industry?

Euroseas: Dividend Growth, But Debt Surge Looms

Euroseas Ltd (ESEA) has released an update. Euroseas Ltd. has announced the successful retrofitting of the M/V Marcos V containership, enhancing it...

Euroseas Ltd. Upgrades Vessel, Boosts Efficiency

Euroseas Ltd (ESEA) is the highest overall rated company in the Marine Shipping industry with an overall score of 72. ESEA is up 99.83% so far this year after the company closed yesterday at $36.31.  The overall score measures the company's performance based-off both short and long term indicators and means that ESEA score

Should You Buy Euroseas Ltd (ESEA) in Marine Shipping Industry?

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Dividend investing is a spectacular way of accumulating wealth, especially if you locate your <a href="https://investorplace.com/stock-types/dividend-stocks/">dividend stocks</a> in tax-efficient accounts. In fact, I&rsquo;d argue that nimble dividend investing would beat capital gains investing in today&rsquo;s economy.



Despite the allure of dividend investing, risks are ever-present. For example, many companies sustain their dividend payouts to satisfy investors while depleting their book values and, in turn, their stock&rsquo;s fair value. Another risk worth considering is that some companies pay dividends instead of reinvesting in their businesses, consequently driving down their future growth prospects.



This article focuses on three dividend-boosting stocks that face price risk due to the aforementioned reasons. Let&rsquo;s discuss each in depth.



<h2>Realty Income Corporation (O)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/realty1600-300x169.jpg" alt="realty income logo highlighted by a magnifying glass on a web browser"><div>Source: Shutterstock</div></div>Realty Income Corporation (NYSE:<a href="https://investorplace.com/stock-quotes/o-stock-quote/">O</a>) isn&rsquo;t a stock but instead a real estate investment trust (REIT). The REIT invests in retail properties located in the United States, United Kingdom and Europe. Realty Income Corporation&rsquo;s property portfolio has yielded tremendous success, realizing 6.2% in annual funds from operations per share growth since 2012.



Although historically a solid income-based investment opportunity, O REIT&rsquo;s recently announced <a href="https://www.prnewswire.com/news-releases/124th-common-stock-monthly-dividend-increase-declared-by-realty-income-302088355.html">124th</a> dividend increases could soon become a burden. What&rsquo;s my basis? Well, O REIT faces systematic headwinds. For example, due to disinflation, U.S. retail capitalization rates are forecasted to recede. In addition, the Atlanta Federal Reserve&rsquo;s&nbsp;<a href="https://www.atlantafed.org/cqer/research/gdpnow" target="_blank">GDPNow</a>&nbsp;projects an economic slowdown to surface in late 2024, which may impair O REIT&rsquo;s asset base.



Furthermore, O REIT has structural concerns. Realty Income released its fourth-quarter earnings last month, revealing a&nbsp;<a href="https://seekingalpha.com/news/4069272-realty-income-q4-beats-ffo-misses-and-2024-guidance-comes-in-slightly-soft" target="_blank">20-basis-point</a>&nbsp;quarterly drop in occupancy. In addition, O REIT raised&nbsp;<a href="https://seekingalpha.com/pr/19629359-realty-income-announces-operating-results-for-three-months-and-year-ended-december-31-2023?hasComeFromMpArticle=false" target="_blank">$1.6 billion</a>&nbsp;in common stock equity during its fourth quarter, raising concerns about its internal liquidity.



Lastly, key metrics suggest O REIT is fairly valued. In particular, its price-to-funds from operation ratio of&nbsp;<a href="https://seekingalpha.com/symbol/O/valuation/metrics" target="_blank">12.92x</a>&nbsp;is above its five-year average of 12.55x. Moreover, its forward dividend yield of&nbsp;<a href="https://seekingalpha.com/symbol/O/dividends/scorecard" target="_blank">5.86%</a>&nbsp;will likely dent the REIT&rsquo;s book value, given that O REIT&rsquo;s funds available for distribution payout ratio is elevated at&nbsp;<a href="https://seekingalpha.com/symbol/O/dividends/dividend-safety" target="_blank">76.10%</a>.



It&rsquo;s time to stay away from O REIT for the time being.



<h2>British American Tobacco (BTI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/bti-stock-1-300x169.jpg" alt="British American Tobacco logo on a building"><div>Source: DutchMen / Shutterstock.com</div></div>I held an optimistic view of British American Tobacco (NYSE:<a href="https://investorplace.com/stock-quotes/bti-stock-quote/">BTI</a>) stock for the better part of three years. However, I&rsquo;ve given up on it as BTI faces numerous fundamental challenges. Moreover, the company&rsquo;s poor environmental, social and governance&nbsp;<a href="https://www.sustainalytics.com/esg-rating/british-american-tobacco-plc/1008204860" target="_blank">(ESG) score</a>&nbsp;adds synthetic demand-side concerns to its stock.



Let&rsquo;s delve into a few of British American Tobacco&rsquo;s fundamental headwinds to set a baseline.



British American Tobacco&rsquo;s projected organic growth until 2026 sits between&nbsp;<a href="https://seekingalpha.com/news/4064659-focus-on-smokeless-tobacco-paying-off-for-british-american-tobacco" target="_blank">3% and 5%</a>. Sure, that sounds respectable, but the company&rsquo;s real growth factor could be flat if inflation is backed out of the equation. Much of the firm&rsquo;s slowing growth is due to softer consumption of combustible products and illicit trade in some of British American Tobacco&rsquo;s primary sales areas. British American Tobacco is pivoting toward non-combustible products such as vapes and tobacco-free nicotine pouches. However, beware that numerous non-combustible products might be a temporary trend.



A newly announced&nbsp;<a href="https://seekingalpha.com/news/4083941-organigram-stock-spikes-us-investment" target="_blank">$2 million</a>&nbsp;investment in Open Book Extracts, a U.S.-based Cannabanoid manufacturer, highlights British American Tobacco&rsquo;s pivot into modern growth industries. However, I&rsquo;m worried about the company&rsquo;s pivot. In truth, its contemporaneous dividend yield of&nbsp;<a href="https://seekingalpha.com/symbol/BTI/dividends/scorecard" target="_blank">9.78%</a>&nbsp;will likely coalesce with the aforementioned and drive its stock price down.



<h2>Euroseas (ESEA)</h2>



<div><img width="300" height="199" src="https://investorplace.com/wp-content/uploads/2022/04/esea_euroseas1600-300x199.png" alt="Tugboat assistance. Container ship EM ATHENS of Euroseas (ESEA) container operator from Greece is entering the harbour with assistance of port tugboat RIL"><div>Source: VolodymyrT / Shutterstock.com</div></div>ESEA&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/esea-stock-quote/" target="_blank">ESEA</a>) stock has drifted up by nearly <a href="https://investorplace.com/stock-quotes/esea-stock-quote/">30%</a> in the past six months, but it&rsquo;s time for mean reversion to play its hand. Euroseas, a Greek container shipping company, has a fleet of&nbsp;<a href="http://www.euroseas.gr/" target="_blank">20 vessels</a> spanning feeder and intermediate containerships.



Although Euroseas is a promising shipping company, it is highly cyclical, meaning its stock fluctuates throughout the economic cycle. I foresee a slowdown in global shipping unfolding in late 2024 due to a blip in the economy and rising geopolitical tensions. Euroseases&rsquo; fourth-quarter results echoed my outlook as the firm missed its revenue target by&nbsp;<a href="https://seekingalpha.com/news/4069579-euroseas-non-gaap-eps-of-3_61-misses-0_24-revenue-of-49_1m-misses-0_39m" target="_blank">$49.1 million</a>&nbsp;amid subdued charter rates. Moreover, Euroseas&rsquo; earnings settled 24 cents below target, suggesting cost cutting is out of the equation for the time being. In essence, key variables indicate that Euroseas is due for a cyclical correction.



In fairness, Euroseas does reward its shareholders equitably. The company raised its dividend by&nbsp;<a href="https://seekingalpha.com/news/4069581-euroseas-raises-dividend-by-20-to-060" target="_blank">20%</a>, resulting in a forward dividend yield of around 7.06%. However, its high dividend yield could be its downfall. Investors will likely capture this quarter&rsquo;s dividend and divest from the stock due to cyclical concerns.



ESEA is too risky, in my view.



On the date of publication, Steve Booyens did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Steve Booyens co-founded Pearl Gray Equity and Research in 2020 and has been responsible for institutional equity research and PR ever since. Before founding the firm, Steve spent time working in various finance roles in London and South Africa. He holds an MSc in Investment Banking from Queen Mary &ndash; University of London. Furthermore, Steve has passed CFA Levels 1 &amp; 2 and is working toward his Ph.D. in Finance. His articles are published on various reputable web pages such as Seeking Alpha, TipRanks, Yahoo Finance, and Benzinga. Steve&rsquo;s articles on InvestorPlace form an interesting juxtaposition between mainstream opinion and objective theory. Readers can expect coverage on frequently traded stocks, REITs, fixed-income funds, CEFs, and ETFs.</div><h3>More From InvestorPlace</h3>
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22 Q1 Attractive All-Star Dogs From AAII And Barron's

Euroseas announces one-year time charter contract for M/V Synergy Antwerp

Euroseas Ltd (ESEA) has released an update. Euroseas Ltd. has successfully secured a one-year time charter for its containership M/V Synergy Antwer...

Euroseas Ltd. Secures Profitable Charter Post-Retrofit

Euroseas Ltd (ESEA) has released an update. Euroseas Ltd. has secured a time charter contract for its M/V EM Hydra containership, guaranteeing cont...

Euroseas Ltd. Strategizes with Vessel Charter and Sale

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Press Releases

Euroseas Ltd. Announces Time Charter Contract for its Fuel-Efficient 2,800 teu Feeder Containership, M/V Tender Soul, to be delivered in February 2024

Euroseas Ltd. to Participate at Capital Link's Corporate Presentation Series

Euroseas Ltd. Announces Delivery of M/V Tender Soul, an Eco 2,800 teu Feeder Containership Newbuilding, and Commencement of the Vessel's Charter

Euroseas Ltd. Sets Date for the Release of Fourth Quarter 2023 Results, Conference Call and Webcast

Euroseas Ltd. Reports Results for the Year and Quarter Ended December 31, 2023 and increases dividend by 20% to $0.60 per share

Euroseas Ltd. Announces Two-Year Time Charter Contract for its Fuel Efficient 2,800 teu Feeder Containership Newbuilding, M/V Leonidas Z, Commencing upon its Delivery

REMINDER - Leading Dry Bulk & Container Shipping Companies Participating at  Capital Link's 18th Annual International Shipping Forum  Monday, March 11, 2024 in New York City

Euroseas Ltd. Announces Completion of Retrofits of its Intermediate Containership, M/V Marcos V, Reducing the Vessel's Carbon Footprint

Euroseas Ltd. Announces One-Year Time Charter Contract and Completion of Retrofits for its Intermediate Containership, M/V Synergy Antwerp

Euroseas Ltd. Announces A Time Charter Contract for its Feeder Containership, M/V EM Hydra, and An Agreement To Sell its 2004-built 2,788 teu Feeder Containership, EM Astoria

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