EMBECTA CORP (EMBC) Stock Fundamental Analysis
NASDAQ:EMBC - Nasdaq - US29082K1051 - Common Stock - Currency: USD
Taking everything into account, EMBC scores 6 out of 10 in our fundamental rating. EMBC was compared to 187 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of EMBC get a neutral evaluation. Nothing too spectacular is happening here. EMBC is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, EMBC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year EMBC was profitable.
In the past year EMBC had a positive cash flow from operations.
Each year in the past 5 years EMBC has been profitable.
Each year in the past 5 years EMBC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.71%, EMBC belongs to the best of the industry, outperforming 82.89% of the companies in the same industry.
EMBC has a better Return On Invested Capital (22.56%) than 99.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EMBC is significantly above the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | N/A | ||
| ROIC | 22.56% |
ROA(3y)10.82%
ROA(5y)28.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.33%
ROIC(5y)35.9%
1.3 Margins
Looking at the Profit Margin, with a value of 4.89%, EMBC is in the better half of the industry, outperforming 77.54% of the companies in the same industry.
In the last couple of years the Profit Margin of EMBC has declined.
EMBC's Operating Margin of 27.01% is amongst the best of the industry. EMBC outperforms 95.72% of its industry peers.
In the last couple of years the Operating Margin of EMBC has declined.
EMBC's Gross Margin of 64.61% is fine compared to the rest of the industry. EMBC outperforms 67.38% of its industry peers.
EMBC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.01% | ||
| PM (TTM) | 4.89% | ||
| GM | 64.61% |
OM growth 3Y-15.62%
OM growth 5Y-10.93%
PM growth 3Y-41.94%
PM growth 5Y-29.11%
GM growth 3Y-1.58%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
EMBC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EMBC has more shares outstanding
Compared to 5 years ago, EMBC has more shares outstanding
EMBC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.81 indicates that EMBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMBC's Altman-Z score of 1.81 is in line compared to the rest of the industry. EMBC outperforms 56.68% of its industry peers.
The Debt to FCF ratio of EMBC is 39.08, which is on the high side as it means it would take EMBC, 39.08 years of fcf income to pay off all of its debts.
EMBC's Debt to FCF ratio of 39.08 is fine compared to the rest of the industry. EMBC outperforms 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 39.08 | ||
| Altman-Z | 1.81 |
ROIC/WACC2.94
WACC7.68%
2.3 Liquidity
A Current Ratio of 2.48 indicates that EMBC has no problem at all paying its short term obligations.
EMBC has a Current ratio (2.48) which is comparable to the rest of the industry.
EMBC has a Quick Ratio of 1.83. This is a normal value and indicates that EMBC is financially healthy and should not expect problems in meeting its short term obligations.
EMBC has a Quick ratio of 1.83. This is comparable to the rest of the industry: EMBC outperforms 48.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.25% over the past year.
Measured over the past years, EMBC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -29.06% on average per year.
Looking at the last year, EMBC shows a decrease in Revenue. The Revenue has decreased by -4.68% in the last year.
EMBC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.25% yearly.
EPS 1Y (TTM)19.25%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%4.48%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%-9.82%
3.2 Future
The Earnings Per Share is expected to grow by 6.11% on average over the next years.
Based on estimates for the next years, EMBC will show a small growth in Revenue. The Revenue will grow by 0.68% on average per year.
EPS Next Y17.38%
EPS Next 2Y8.58%
EPS Next 3Y7.08%
EPS Next 5Y6.11%
Revenue Next Year-2.81%
Revenue Next 2Y-1.6%
Revenue Next 3Y-0.83%
Revenue Next 5Y0.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
EMBC is valuated cheaply with a Price/Earnings ratio of 4.06.
Compared to the rest of the industry, the Price/Earnings ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 98.40% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. EMBC is valued rather cheaply when compared to this.
EMBC is valuated cheaply with a Price/Forward Earnings ratio of 3.54.
Based on the Price/Forward Earnings ratio, EMBC is valued cheaper than 99.47% of the companies in the same industry.
EMBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.06 | ||
| Fwd PE | 3.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 96.79% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.19 | ||
| EV/EBITDA | 5.94 |
4.3 Compensation for Growth
EMBC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EMBC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y8.58%
EPS Next 3Y7.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.47%, EMBC is a good candidate for dividend investing.
EMBC's Dividend Yield is rather good when compared to the industry average which is at 1.82. EMBC pays more dividend than 100.00% of the companies in the same industry.
EMBC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
5.2 History
EMBC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
EMBC pays out 65.91% of its income as dividend. This is not a sustainable payout ratio.
DP65.91%
EPS Next 2Y8.58%
EPS Next 3Y7.08%
10.32
+0.07 (+0.68%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.29%
Inst Owner Change2.27%
Ins Owners0.46%
Ins Owner Change6.09%
Market Cap603.10M
Analysts52
Price Target18.2 (76.36%)
Short Float %7.61%
Short Ratio7.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP65.91%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.99%
Min EPS beat(2)29.98%
Max EPS beat(2)44.01%
EPS beat(4)4
Avg EPS beat(4)38.05%
Min EPS beat(4)21.87%
Max EPS beat(4)56.36%
EPS beat(8)7
Avg EPS beat(8)31.1%
EPS beat(12)10
Avg EPS beat(12)33.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)0.84%
Revenue beat(4)2
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)1.26%
Revenue beat(8)6
Avg Revenue beat(8)1.84%
Revenue beat(12)10
Avg Revenue beat(12)2.26%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-10.08%
PT rev (3m)-15.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)0.94%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.06 | ||
| Fwd PE | 3.54 | ||
| P/S | 0.56 | ||
| P/FCF | 15.19 | ||
| P/OCF | 11.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.94 |
EPS(TTM)2.54
EY24.61%
EPS(NY)2.91
Fwd EY28.22%
FCF(TTM)0.68
FCFY6.58%
OCF(TTM)0.87
OCFY8.46%
SpS18.47
BVpS-12.6
TBVpS-12.99
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | N/A | ||
| ROCE | 33.87% | ||
| ROIC | 22.56% | ||
| ROICexc | 29.81% | ||
| ROICexgc | 30.9% | ||
| OM | 27.01% | ||
| PM (TTM) | 4.89% | ||
| GM | 64.61% | ||
| FCFM | 3.68% |
ROA(3y)10.82%
ROA(5y)28.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.33%
ROIC(5y)35.9%
ROICexc(3y)39.2%
ROICexc(5y)44.82%
ROICexgc(3y)41.18%
ROICexgc(5y)47.17%
ROCE(3y)36.53%
ROCE(5y)53.9%
ROICexcg growth 3Y-18.01%
ROICexcg growth 5Y-11.68%
ROICexc growth 3Y-17.5%
ROICexc growth 5Y-11.4%
OM growth 3Y-15.62%
OM growth 5Y-10.93%
PM growth 3Y-41.94%
PM growth 5Y-29.11%
GM growth 3Y-1.58%
GM growth 5Y-1.58%
F-Score4
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 39.08 | ||
| Debt/EBITDA | 4.71 | ||
| Cap/Depr | 32.1% | ||
| Cap/Sales | 1.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 15.61% | ||
| Profit Quality | 75.19% | ||
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 1.81 |
F-Score4
WACC7.68%
ROIC/WACC2.94
Cap/Depr(3y)66.88%
Cap/Depr(5y)82.76%
Cap/Sales(3y)1.97%
Cap/Sales(5y)2.62%
Profit Quality(3y)85.85%
Profit Quality(5y)92.96%
High Growth Momentum
Growth
EPS 1Y (TTM)19.25%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%4.48%
EPS Next Y17.38%
EPS Next 2Y8.58%
EPS Next 3Y7.08%
EPS Next 5Y6.11%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%-9.82%
Revenue Next Year-2.81%
Revenue Next 2Y-1.6%
Revenue Next 3Y-0.83%
Revenue Next 5Y0.68%
EBIT growth 1Y47.42%
EBIT growth 3Y-16.64%
EBIT growth 5Y-10.7%
EBIT Next Year39.71%
EBIT Next 3Y10.43%
EBIT Next 5Y7.67%
FCF growth 1Y-65.11%
FCF growth 3Y-63.73%
FCF growth 5Y-46.06%
OCF growth 1Y-63.1%
OCF growth 3Y-57.22%
OCF growth 5Y-41.13%